An energy broker commission claim is where people or businesses try to gain compensation for financial losses incurred due to the actions or inactions of an energy broker. Energy brokers are intermediaries between consumers and energy suppliers whose job is to find the best possible energy deal for you. In return, they receive a fee or commission for their efforts.
However, there have been instances where some energy brokers have misled clients resulting in them paying excessive commissions disguised as energy bills or receiving substandard energy deals.
According to the FSB (Federation of Small Businesses), many small and medium-sized enterprises (SMEs) have also experienced mis-selling by energy brokers including misrepresentation of energy costs, contract terms, excessive commission charges, and general failure to provide transparent information.
For instance, let’s say a small business owner relies on an energy broker to secure a favourable energy contract with an energy supplier. The broker presents a deal, claiming it will result in significant cost savings. However, after signing, the business owner discovers that the actual energy costs are higher than initially represented. This misrepresentation leads to financial losses for the business, and the solution will be to pursue an energy broker commission claim.
Where to Start When Making an Energy Broker Commission Claim
If an energy broker provided false, misleading, or incomplete information about the energy contract, pricing, commission fees, or potential savings, it may mean that you are potentially able to make a claim. The reality is, a lot of people are not even aware of what broker companies charge for their services. What might happen is that they get a hefty bill at the end of each month with extra costs they didn’t know about which have been previously agreed between the broker and the energy provider.
Failing to disclose or adequately explain commission fees or “secret commissions”, hidden charges, or other costs associated with the energy contract can also raise concerns. Not being transparent about certain information stops you from being able to make informed decisions about the particular energy provider you want to choose. This might mean that had the energy broker not influenced your decision, you would not have chosen that energy provider if you had been given the true information. These may be grounds for a claim, so it’s vital that you look out for any additional costs that you didn’t know would come up when you agreed to the arrangement.
In this case, it’s important to think about the financial losses you have experienced because of the energy broker’s actions. Perhaps you were subject to excessive commission fees, inflated energy costs, and missed opportunities for savings. These are all quantifiable financial losses.
Do the Energy Broker’s Actions Meet Industry Standards and Regulations?
The first thing to do is to assess whether the energy broker’s actions align with industry standards and regulatory requirements. If the broker fails to adhere to ethical guidelines, breaches professional codes of conduct, or violates regulatory obligations, it strengthens the grounds for a claim. Ofgem is the energy regulator in the UK which monitors company compliance alongside the Energy Ombudsman to protect individuals and businesses.
Gather Relevant Documentation
Collect all relevant documents and evidence to support your claim. These include contracts, invoices, emails and other correspondence with the broker, and any other records that demonstrate the broker’s misconduct or any financial losses incurred.
Speak to an Energy Broker Commission Claim Solicitor
A solicitor will be able to advise you as to whether you have the potential to make a claim. They’ll look at all of your documentation and tell you if it is concrete enough to evidence energy misselling. They will then be able to help you with the next steps in making the energy broker commission claim.