Business Energy Claims
Has your business' energy bill gone way up in price and you don't know why?
How have people been mis-sold business energy?
In 2020, 5.7 million micro-businesses were operating in the UK, accounting for 96% of all businesses. In a bid to get the lowest price for their energy supply, thousands of these businesses have utilised the services of an Energy Broker to act as a third-party Intermediary (TPI) between themselves and the Wholesale Energy Provider.
Whilst appealing new energy contracts negotiated by the Broker appeared to save the business a considerable amount of money, it has come to light that Brokers have failed to disclose hidden commissions and fees at the financial detriment of the business.
Failure to provide full financial details has given way to thousands of businesses reclaiming the hidden commissions back from the Broker, and by way of vicarious liability, from the Energy Wholesaler themselves.
According to the energy regulator Ofgem Business Energy Mis-Selling is a big problem, thousands of UK businesses are paying more than they should be on their gas and electricity bills. In 2019 Ofgem raised concerns about bad business practices being carried out by energy brokers, consultants & TPI’s (third party intermediaries). It was found that they had been hiding the amounts of commission they were receiving when selling business energy contracts to businesses.
Measures Introduced Include:
- Transparency of Brokerage costs
- Introducing a 14-day cooling off period for microbusiness contracts
- Strengthening supply license obligations to provide information about brokerage costs
- Reinforcing rules around the supply of full contractual terms to ensure consumers receive all full disclosure of financials
What is the average business energy claim worth?
All contracts are different as is the amount of mis-selling and the level of the breach. As a rough guide, we have found it is likely that we can recover and claim between 10 and 20% of your previous energy bills back from the broker or others who received the benefit from the energy broker’s mis-selling.
According to experts, the average claim is worth over £25,000. To illustrate how much claims can vary however, an average claim value of £80,000 for hospitality companies compared with £240,000 for engineering firms.
How Can Courmacs Legal Help?
At Courmacs Legal, we understand the complexities of business energy claims and can provide the support and guidance you need to make a successful claim for compensation. We can help you to identify if you have been mis-sold business energy, calculate any losses you may have incurred, and make a successful claim for compensation.
Try our free, no-obligation eligibility check
Apply online or speak to one of our friendly team over the phone and find out if you're eligible for compensation. We offer a free, no-obligation eligibility check, just fill out our Business Energy Claim enquiry form.
Apply OnlineRequest a callTPI is an acronym for ‘Third Party Intemediary’ – this is the legal term for brokers or energy consultants.
We do not take any up-front fees! You may have heard of ‘no win, no fee’ – this seems a little daunting, however it just means that we back every compensation claim with insurance to ensure that if your case is lost, you will not have to pay anything.
If your case does win and you receive compensation, we will take a percentage to cover our solicitors’ time working on the case.
We guarantee that all our clients will receive at least 51% of the compensation rewarded.
