Across the UK, businesses and other organisations rely on energy brokers to help secure gas and electricity contracts.
However, some brokers are accused of recommending suppliers based on the commission they received rather than what was in their customers’ best interests.
Energy brokers can receive commission from suppliers, but court rulings have made clear that businesses should be given enough information to understand how those commission arrangements could affect the cost of their contracts.
Where commission was not properly disclosed, some businesses may have grounds to bring a claim.
The devastating impact of hidden energy commissions
Financial strain
Many organisations faced significant financial strain due to inflated energy costs. In some instances, skyrocketing energy bills exacerbated financial pressures and disrupted budgetary planning.
According to media reports, the landlord of the Ship Centurion pub in Whitstable could be eligible for compensation of up to £16,500. Due to inflated energy bills, he had to let a member of staff go and has been “turning freezers off, turning the cellar cooling off 12 hours a day and taking fridges out.”
Operational challenges
The burden of inflated energy costs placed additional strain on businesses, hindering growth and potentially leading to financial instability. Hidden energy commissions eroded profit margins for companies across various sectors, impacting their ability to reinvest in growth initiatives or sustain essential services.
A spokesperson for the charity said: “It would have helped hundreds of needy people. But we’ve had to put that on hold.”
Risk of closure
For businesses reliant on consistent cash flow and profitability, the surge in energy costs posed a significant risk of closure, threatening the livelihoods of employees and the communities they serve.
If you believe an energy broker received commission that wasn’t properly disclosed when arranging your business energy contract, you could be entitled to compensation..
Businesses of all sizes may have been affected, from sole traders and small independent shops to charities, schools and large companies. If you used a broker to arrange your energy contract, it may be worth checking whether undisclosed commission was included.
Join the Claim connects consumers with SRA-regulated lawyers. Visit the claim page to check your eligibility if a claim is open with one of our trusted legal partners. If a group action has not yet been launched, you can register your interest and we’ll keep you informed if a partner firm decides to take a claim forward.
