Understanding Mis-Sold Business Energy Claims

5th of January 2024

Running a business requires vigilance, particularly when it comes to understanding where your hard-earned money is going. Unfortunately, the less transparent areas such as energy contracts can often become a source of unforeseen financial strain. This article is designed to elucidate one such problem - mis-sold business energy claims, particularly focusing on undisclosed broker's commissions.

The Reality of Business Energy Contracts

When businesses use a broker to procure energy contracts, often there's an undisclosed commission between the energy provider (gas, electricity) and the broker. So, if the principal energy cost was 9p/kWh, but the broker received a 2p/kWh commission, the business would end up paying 11p/kWh, ostensibly paying more for something that initially cost less.

The Concealed Extra: Broker's Commissions

Unfortunately, hidden fees from broker commissions are quite common in business energy contracts. These fees sneak into the fine print of your agreement, often escaping the notice of many business owners. The broker, not disclosing the commission to the business, is where the mis-selling occurs.

Claiming Back: Your Rights as a Business Owner

Businesses are entitled to claim back the excess payments when they have been mis-sold due to undisclosed fees. This process of 'claiming back' involves investigating instances of mis-selling, proving the undisclosed commission, and finally, retrieving the excess payments in question.

The Procedure

To initiate a claim process, companies must first collect evidence proving they were mis-sold the contract. It includes all the contractual documents, terms and conditions, and recorded communication with the broker. Businesses can reach out to legal firms or claim companies that specialize in handling these types of cases. Their professional guidance can help make the otherwise complicated claims process much smoother.

Conclusion

It is essential to maintain the transparency of the business energy market for a fair and productive business environment. Business owners have the right to know the full breakdown of their energy costs. If you have been a victim of undisclosed energy commissions, don’t hesitate to claim back. Stay informed, be vigilant, and ensure your business energy contracts truly serve your business needs.

 

At Clear Money Claims, our goal is utmost transparency. You'll only be charged a fee if we successfully secure financial redress for you. The success fees can range from 15% to 25% of your settlement, depending on the amount. For more information, click here. In the event that you pursue your claims until the end but they turn out to be unsuccessful, you won't owe any payment. If you decide to cancel your claim after the 14-day cooling-off period but before the process concludes, there may be a cancellation charge. To learn more about cancellation fees, click here.