Understanding the hidden business energy commission scandal

Ofgem has warned that businesses could be paying far too much for their gas and electricity due to a mis-sold energy contract

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More and more businesses are finding themselves forced to pursue business energy claims in order to address the unfair commission being charged over the time of their business gas and business electricity contracts.

Large and small businesses alike have fallen victim to the rise in hidden business energy commission. So much so that Ofgem has publicly announced its commitment to cracking down on “unscrupulous” energy brokers and their hidden fees.

The energy regulator put out a statement outlining their plan to act against the overcharging of small businesses by inflated and hidden commissions. High margins, missold energy contracts, large advances and brutal business energy rollover contracts have resulted in many businesses struggling to stay afloat. Now it’s come to light that decades of bad practice by some suppliers, consultants and brokers has led to businesses paying far more than they should for their energy.

Of course, many brokers offer a reputable and genuine service for business clients, in addition a substantial number have been exposed as offering misguided advice and unfavourable terms for business gas and business electricity deals.

Ofgem states that the only way to address this issue is by regulation and legislation. As such, organisations like Winn Solicitors are fighting to help companies seek financial justice and unprotected to optimum business energy security.

The importance of effective business energy security

Business energy security is vital for organisations across all industries, and of all sizes, because there is a without of official regulation that makes it all too easy to fall for a missold business energy claim.

Unlike domestic energy contracts, business energy contracts are not regulated by Ofgem. This method that businesses don’t have the security of knowing that agreements are clear, calls are recorded, and there is fair treatment and pricing in place. Businesses are finding themselves obvious targets for unethical brokers looking to increase profits by exploiting clients.

Hidden business energy commission is having a clear negative impact on businesses of all sizes. It’s estimated that organisations across the UK have been overpaying by hundreds of millions of pounds. Businesses, charities and public bodies across the UK use £25 billion a year on energy, and a meaningful percentage of this is made up of undisclosed fees, according to Ofgem.

Winn Solicitors reports that instances of ethical broker behaviour are few and far between and that organisations can assume it’s “doubtful” that they won’t be overcharged at some point. As such, Winn Solicitors have helped businesses retrieve between 10% and 20% of their past energy bills.

Likewise, Ofgem has announced a commitment to tackling mis-sold business energy claim issues by monitoring broker conduct and implementing more strong responsibilities that energy suppliers must follow to ensure transparency and fairness. This is a hugely important development for businesses, especially in the wake of the COVID-19 pandemic that saw businesses across all industries struggle to stay afloat.

If you think that you’ve been victim to a missold business energy claim, the time to act is now. Get in touch with Winn Solicitors by visiting https://www.winnsolicitors.com/energy-mis-selling-claims

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