Following an investigation by the Competition and Markets Authority (CMA) in 2016, it was found that microbusinesses have been facing perceived barriers in accessing and assessing information about energy tariff barriers. The role of Energy Brokers in aiding microbusinesses to find the ‘best’ or ‘competitive’ arrangement of their business energy contracts with the Service Providers has been lacking transparency.
Mostly, the Energy Brokers had relied on the Service Providers for commission from this arrangement which neither the Energy Broker nor the Service Provider disclosed to the consumers. It is typical that the broker and provider would disclose neither the existence nor the extent of such commissions. This commission was added to the per unit rate of energy supplied, which causes an inflated cost of energy for the consumer.
This lack of transparency has been recently acknowledged by the Office of Gas and Electricity Markets (Ofgem) in their strategic review report on 28th March 2022. Ofgem has now made an obligation on energy providers to disclose these commissions to consumers.
It is well established by the case law in England and Wales that cases of similar circumstances, where the briber (the energy provider) and the payee (the broker) had such an arrangement, both the briber and the payee are liable to the consumer. This opens the consumer to claim for damages, recission of the contract or restitution.
If you are the owner of a business who has arranged for their supply of energy through an energy broker, it may well be that your energy broker is receiving substantial commission which, in turn, is causing you to pay an increased energy rate. Our Business Energy Team are specialists in dealing with cases like these and will be able to tell you whether you have a claim of this nature. You may be able to recover the full amount of commission paid to the broker. If you would like a free initial consultation, either call us on 01744 744400 or complete our contact form and a member of the Business Energy Team will be in contact.
Posted on: 05/May/2022 Posted in: Business Energy Claims