Across the UK, businesses and other organisations rely on energy brokers to secure favourable gas and electricity deals. However, the trust placed in these brokers is often misplaced, as lawyers believe some pushed the energy companies that paid them the best commission rather than looking for the best deals for their customers.
While it is not illegal for brokers to earn commissions, transparency is critical. Yet, many brokers failed to disclose these commissions to their customers. To make matters worse, the brokers didn’t inform them that the energy companies would add portions of these commissions to their monthly bills.
Consequently, countless businesses, faith groups, schools, charities, sports clubs, local authorities, community organisations, and care homes were burdened with inflated energy costs. In some instances, bills surged by a staggering 50%.
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.
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.
One charity, set up after the Clutha disaster in Glasgow, claims it was scammed out of almost £300,000 in secret commission payments. 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 suspect an introducer or broker charged you energy commission without your consent, you could be eligible for a refund.
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.
