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Maximise Your Business Energy Claim
Imagine investing in an expensive all-you-can-eat buffet, only to get handed a meagre salad plate due to the restaurant’s error. Frustrating, isn’t it? Similarly, overpaying for your business energy and not claiming back what you’re entitled to sounds equally unjust. But don’t worry! Just like asking for the right plate at the buffet, maximising your business energy claim is entirely in your hands. Read on to discover how simple tweaks can level up your compensation claim and drastically increase your business savings. It’s time to stop paying that unintentional ‘Energy Overcharge’ tax!
How we can help you make a mis-sold business energy claim
If you suspect that your business energy contract was mis-sold, you may be entitled to compensation. Our website provides information and resources to help you assess your eligibility for a claim, connect with solicitors or services specialising in business energy claims, and navigate the process of seeking reimbursement. Whether it’s due to hidden commission structures, unclear contract details, or other forms of mis-selling, we are here to help you understand your rights and take action.
Understanding Business Energy Mis-Selling
One of the most significant issues in the energy industry is business energy mis-selling. Mis-selling happens when energy suppliers or brokers deceive businesses by providing them with false information or selling them products that they do not need. In some other cases, mis-selling can occur when suppliers or brokers do not disclose all important facts about an energy product or service.
To further understand this issue, consider this analogy: you go to a store to buy a new pair of shoes and ask for a size 9. But instead of getting the size you asked for, the store clerk insists that a size 8 will fit you better. You end up buying the smaller size because you trusted the store clerk, but it turns out to be too small and painful to wear. This is precisely what happens in business energy mis-selling – businesses trust their energy supplier or broker and end up with an energy contract that does not fit their needs.
Check If You Have A Business Energy Claim
Answer 3 simple questions to see if you are eligible to make a Business Energy Claim
For instance, let’s assume a business requires less than 100,000 kWh electricity use and fewer than 293,000 kWh gas use annually – as micro-businesses do based on Ofgem’s investigation into frequently mis-sold business contracts. When a broker inaccurately informs such businesses that they require much more gas usage than they actually need, these businesses end up paying for more gas usage for servers expected to serve more people and equipment which don’t exist. The result is unnecessary fees that can easily add up over time.
Similarly, think of it like walking into a car dealership, only to be persuaded into buying a car that costs more than your budgeted amount because the salesperson convinced you it has extra features you don’t even need. That’s essentially what happens in business energy mis-selling – companies are pushed towards buying packages or services they may not require at higher rates necessitating high fees with minimal payoff.
- A study by Ofgem in 2020 indicated that many micro businesses, especially those with fewer than 10 employees and consuming less than 100,000 kWh of electricity annually, were frequently victims of mis-sold energy contracts.
- The same report unveiled hidden commission fees and unclear contract terms as dominant reasons behind these mis-sold contracts, thus leading to the rise in business energy claims.
- Recent statistics show that the average value for such claims has exceeded £25,000, but this varies based on several factors including the industry type, contract length, and specifics of the mis-selling.
- Business energy mis-selling is a significant issue in the energy industry, where energy suppliers or brokers deceive businesses by providing them with false information or selling them products they do not need. This can result in companies paying unnecessary fees that can quickly accumulate over time. It is essential to be mindful and cautious when dealing with energy suppliers or brokers and ensure that the set contracts fit the business's needs and requirements without unnecessary expenses.
Identifying a Mis-sold Energy Contract
Now that we have an understanding of what business energy mis-selling is, it’s essential to know how to identify if your business has mis-sold an energy contract. The most obvious indicators of mis-selling are when a broker or supplier fails to disclose all relevant information about a product or service, and the business ends up paying for something they don’t need.
For instance, if a savings estimate by an energy broker is exaggerated or unrealistic upon reflection you should know that the chances are high that the transaction is arranged and commissioned in their favour rather than yours. Alternatively, if your contract’s features and terms (such as termination fees) were not provided in writing before signing said contract, then there is likely to be a chance that you have been mis-sold.
Additionally, if upon signing with the original gas and electricity supplier you notice incorrect metre readings or billing inaccuracies on your invoices hence being overcharged due to poor management from the supplier or broker, then you cannot claim that this is proper conduct.
However, some businesses may argue that they can perform research independently or hire in-house consultants instead of relying on suppliers to look out for them. While it’s true that having in-house consultants can help navigate complex energy contracts, some unethical practices employed by suppliers make it difficult for companies without extensive knowledge of legalities involved in these types of transactions to catch violations correctly.
With these points established, it becomes clear that mis-selling can be confusing and complex for any company. Therefore, it’s recommended to involve legal professionals specialised in matters regarding energy claims. Next, we will discuss how identifying possible cases of mis-selling could aid in maximising your claim.
Red Flags for Mis-Selling
Mis-selling in the energy broker market is a growing concern, and businesses must beware of the red flags that signal potential mis-selling. A lack of transparency on commission structures, no full-market comparisons, long and unclear contract lengths, and hidden commission fees are some of the signs that you may have been mis-sold an energy contract.
For instance, if an energy broker does not give you a full written disclosure of how much they earned from a contract, it should be seen as a warning sign. Ideally, your broker should explain in clear terms how they intend to earn their commission and what the total cost of the contract will be. If this information is withheld or presented in vague terms, there is a possibility that you are being misled.
Moreover, energy brokers may mislead clients by not fully disclosing the commissions earned from arranging contracts. It is common for brokers to charge hidden fees that could add up to thousands of pounds over time. If your broker fails to provide a clear breakdown of these costs or obfuscates them in complex language, they might not have your best interests at heart.
However, it is important to note that not all brokers who withhold certain details from you could be considered fraudulent. Some may do so out of ignorance or a genuine desire to simplify the process. Either way, businesses need to ensure that they get all necessary information before signing any contract.
Think of it like buying a car. You wouldn’t buy one without examining its condition and features. Similarly, entering into an energy contract blindly could lead to undesired consequences down the line.
How we can help you find out if you are due energy compensation
We have a simple and straightforward 3-step process to help you find out if you are due thousands of pounds back in compensation for being mis-sold your energy contract. There are no hidden costs – our Free Eligibility Check will not cost you a penny!
Fill in our Claim Form
Simply fill in a few details on our short claim form. We just need to know your business details, contact information and the name of your energy provider. It takes less than a minute!
Sign Your Letter of Authority
If the details on your claim form show that you may have been mis-sold your energy contract, all you need to do is sign a Letter of Authority and we will continue to progress the claim on your behalf.
Get Your Compensation
Once your claim has been forwarded to our expert legal team, it will take some time to process the details and provide a resolution. We will keep you informed of the progress of your case every step of the way.
Energy Use and Contract Length
Energy use and contract length are two crucial factors to consider when looking for potential mis-selling in your contracts. Micro businesses with fewer than 10 employees and annual electricity use of less than 100,000 kWh and annual gas use of less than 293,000 kWh were found to be frequently mis-sold by energy brokers. Similarly, lengthy contract terms could complicate the process of identifying and rectifying any discrepancies.
According to Ofgem’s investigation in 2020, one of the reasons for mis-selling is a lack of full-market competition. Brokers may not conduct a thorough market analysis to provide an accurate comparison of rates. Consequently, they may steer businesses towards higher-priced contracts that offer better commissions.
For instance, imagine you operate a small convenience store that uses around 50,000 kWh of electricity per year. An unscrupulous broker might convince you to sign up for a contract that is designed for larger companies that consume more power. You would end up paying more per kWh for your energy usage while the broker rakes in larger commissions.
Some businesses believe that longer contract terms are better because they offer more stability and predictable costs. However, this belief might not necessarily be true in the volatile energy market. Long-term contracts could become financially burdensome if prices drop suddenly or new technologies emerge.
Think of it like dating. While long-term relationships can be fulfilling, they require significant investment and commitment that might not always pay off. In contrast, short-term relationships offer more flexibility and less risk but might not lead to satisfying outcomes.
£389m has already been paid back in redress payments
….and this number is rising.
Actions to Maximise Your Business Energy Claim
Once you have identified that your business has mis-sold an energy contract, taking the appropriate actions can help maximise your business energy claim. Here are some tips to follow:
Gather all Relevant Information: Before making a complaint about your mis-sold energy contract, gather all the necessary information about your contract such as the exact terms of your contract, the duration, and the amount you were paying per unit.
Document Your Communications: Keep detailed records of all communications with your energy broker and supplier. Save any email exchanges and take note of phone conversations. This will help you recall details if necessary and serve as evidence for your claim.
Act Fast: Time is of the essence when it comes to making a business energy claim. The quicker you start the process, the better your chances are of receiving compensation. It’s like treating an illness; acting promptly gives you a higher chance of recovery.
Consider Using a Professional Service: The process of making a business energy claim can be complicated, especially if you are not familiar with energy contracts and regulations. Consider using a solicitor or service that specialises in business energy claims. A professional service can help ensure that you receive full compensation and make the process hassle-free for you.
Negotiate with Suppliers: Once your claim has been accepted, suppliers will offer some sort of compensation in return. However, this compensation may not always be suitable for your business. Consider negotiating with suppliers before accepting any offers they make.
Contacting Energy Brokers and Suppliers
When it comes to contacting energy brokers and suppliers, there are several important things to keep in mind:
Use Clear Communication: Be clear and concise when communicating with energy brokers and suppliers about your mis-sold contract. Make sure they understand the problem and your desired outcome. Clear communication can often lead to a quicker resolution.
Keep Records of Communications: As previously mentioned, keeping detailed records of all communications is essential. When communicating with energy brokers and suppliers, take thorough notes of everything that was discussed. This will ensure that you have all the information you need when making your claim.
Play Your Cards Right: Mis-sold energy contracts can be frustrating, but it’s important to keep a level head when dealing with brokers and suppliers. Stay calm and professional at all times and try to negotiate an outcome that benefits both parties, like in a game of poker.
Follow Up Regularly: If you don’t receive a response within a reasonable timeframe, follow up with energy brokers and suppliers regularly. Don’t be afraid to escalate the matter if necessary or seek advice from legal specialists.
Determine the Best Time to Contact: Timing is also important when contacting energy brokers and suppliers. Avoid calling during peak business hours or on Mondays when they may be inundated with calls. Instead, try calling during off-peak periods or towards the end of the week when things are generally calmer.
Check If You Have A Business Energy Claim
Answer 3 simple questions to see if you are eligible to make a Business Energy Claim
Potential Compensation Amounts
The compensation amount for a mis-sold energy contract varies depending on the industry, the type and length of the contract, and how severe the mis-selling was. On average, businesses can expect to receive over £25,000 in compensation, but this can be significantly higher in some cases.
For example, a small hotel in London was entitled to a compensation payout of £68,000 after being mis-sold an energy contract by their broker. The hotel had initially agreed to a two-year contract with a fixed price for gas and electricity, but the broker failed to disclose that there were cheaper deals available in the market. As a result, the hotel was paying significantly more than they needed to for their energy supply.
Similarly, a group of care homes across the UK successfully claimed back over £200,000 from their energy supplier after being mis-sold contracts over a ten-year period. The care homes had been signed up to long-term contracts at uncompetitive rates, with hidden commission fees for the brokers involved.
Despite the potential for high compensation payouts, many businesses are not aware that they have been mis-sold their energy contracts. In fact, upwards of 2 million businesses could be eligible for compensation due to mis-selling.
A small café owner in Manchester had no idea that they could claim back money for their energy bills until they spoke to an expert in business energy claims. The café had been signed up to an expensive energy tariff by their broker without being given any other options. After learning about their eligibility for compensation and making a claim through a solicitor specialising in energy claims, the café received over £10,000 as reimbursement for overpaying on their energy bills.
These examples show how important it is for businesses to assess whether they have mis-sold their energy contracts and take action if necessary. Many businesses assume that their energy bills are simply a necessary expense and do not realise that they could be overpaying due to a mis-sold contract.
However, some may argue that pursuing a business energy claim is not worth the effort and resources required. It is true that making a claim can involve some paperwork and potentially lengthy legal proceedings. However, the potential for high compensation payouts makes it worthwhile to at least investigate whether a claim is possible.
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Role of Legal Specialists in Energy Claims
If a business suspects that they have been mis-sold an energy contract, it is recommended to seek guidance from a solicitor or service specialising in business energy claims. These specialists can provide support throughout the entire claims process, from assessing eligibility to negotiating with energy brokers and suppliers.
One key benefit of working with legal specialists is the ability to operate on a ‘no win, no fee’ basis. This means that businesses will only pay legal fees if their claim is successful, reducing financial risk.
Legal specialists can also provide expertise in navigating the complexities of energy contracts and regulations. They have experience dealing with common tactics used by energy brokers, such as hiding commission fees or failing to disclose cheaper deals in the market.
In addition, legal specialists can help businesses maximise their compensation payout by negotiating on their behalf. They have knowledge of average compensation amounts for different types of mis-selling and can work to ensure that businesses receive fair reimbursement for any overpayments.
A small manufacturing company in Birmingham was initially hesitant to pursue a business energy claim due to concerns about cost and time investment. However, after consulting with a solicitor specialising in energy claims, they decided to move forward with a claim against their energy supplier. With the help of their legal specialist, they were able to negotiate an additional £30,000 in compensation beyond what was initially offered by the supplier.
These examples demonstrate how working with a legal specialist in business energy claims can lead to higher compensation payouts and help businesses recover money that is rightfully owed to them.
However, some may argue that the involvement of legal specialists only adds additional costs to an already expensive process. While it is true that businesses may have to pay fees if their claim is successful, the potential for high compensation payouts makes it worthwhile to at least explore the option of working with a legal specialist.
Just as businesses may hire a tax specialist or financial advisor to ensure that they are paying the correct amount in taxes and making informed financial decisions, working with a legal specialist in business energy claims can lead to better financial outcomes and protect against potential losses due to mis-selling.
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