Energy claims refocused on high cost deals agreed with brokers who also received a commission from the energy companies, often without the client’s knowledge. The commission was often included in the customer’s tariff, adding significantly to the overall energy costs of the business.

Since October 2020, the industry regulator Ofgem has made it a requirement for a broker to declare their commissions to clients in micro-businesses, defined as firms with a turnover of less than £1.8m.

Legal challenges can argue that the hidden commissions breached duties owed to the customer and could legally be construed as a bribe, potentially entitling their clients to compensation.

Businesses should write to their energy supplier to gather information about the broker fees paid as part of their energy tariff since the deal was agreed. If they cannot agree a settlement with their supplier, they can consider joining a group action by a legal firm or taking their action to a business energy claims company.

Businesses will need to show the existence of fiduciary duties by the broker/agent/introducer to the customer, a breach of those duties, and the lack of informed consent from the claimant regarding the payment of the commission. They must also prove knowledge of the fiduciary relationship on the part of the supplier, and that the supplier’s actions gave rise to a liability to the customer.

There are notable similarities between mis-sold business energy deals and mis-sold financial agreements like PPI. The key similarity is that unreliable brokers and suppliers failed to disclose how much commission was attached to your agreement. You can freely ask your broker about the commission, but as the energy broker industry is currently unregulated, they have no obligation to openly declare just how much money they are earning off commissions attached to the deal they sold you.

We take your case on in anticipation of a victorious outcome, and all our cases are conducted on a no-win, no-fee basis: this means that unless you’re successful and receive financial redress, we don’t earn a penny for our services. In the event your claim is successful, we will deduct our fee (set out clearly and explained to you in full when you begin your claim) from the compensation awarded. This means that you won’t owe us a thing throughout the process of your claim.

A ‘Third Party Intermediary’, otherwise known as a TPI, is the name given to an energy broker that acts as a middleman between businesses and energy companies. It’s their job to find the best business energy deal for you. But recent findings show they may be adding extra, undisclosed commissions to your packages for their own benefit…

Many of our past and existing clients have a strong relationship with their energy broker, and we understand that this sense of trust is what got you your current energy deal. But it’s often signs of trust and promises of a fantastic business energy deal that are a warning sign of a mis-sold agreement. If we can strike a successful claim for you, it’s likely the broker will offer to remove their commissions and lower your rate, or they may offer to cancel your existing contract: we will always ask for your permission to have any such changes applied to your account and ensure your business won’t go without energy.