Recovering hidden energy commissions and identifying mis selling
Unbeknown to millions of UK businesses, they may be owed thousands of pounds due to mis-sold energy contracts. A majority of businesses regularly use the help of an energy broker (known as an intermediary or TPI’s) to act in good faith to source them the best tariff, acting in the best interests in finding an energy provider. But, this is not always the case.
Energy brokers are not regulated, this has been a concern for OFGEM for years, as not only are some brokers not providing businesses with the most suitable provider, but they are also receiving a hidden commission, on top of the commission that they told you about. In the majority of contracts that we look at, the broker is being paid on the unit of energy you use, but this has not been disclosed either by the supplier or the broker.
In some cases, customers can receive full contract rescission, meaning that their full spend across the contract term will be applied for by our litigation solicitors.
Consequently, the customer is entitled to the repayment of the hidden commission plus interest. Hidden commissions look something like this:
Our average claim looks a little like this:
Contract 1: Gas Contract Length: 2 Years Energy Broker Rate (Uplift): 1 p/kWh Annual Consumption: 523,151 Energy Broker Commission: £10,463.02
Contract 2: Electricity Contract Length: 5 Years Energy Broker Rate (Uplift): 0.4 p/kWh Annual Consumption: 764,894 Energy Broker Commission: £15,297.88
Total Combined Commission: £25,760.90
WORDS FROM OUR FOUNDER
“Energy suppliers have been exploiting businesses for a long time. There is little sympathy from consumers, many of whom have been mis-sold to and lied to when relying on their suppliers and brokers to act in good faith. We have seen that the smallest wins mean so much to many businesses. Eureka offer a free review, and by doing so, if you are eligible, can calculate what you could be entitled to. Working on ‘no win, no fee basis’, there are no upfront costs to the service and our legal panel of solicitors will only progress matters if they are confident in the victory.”
Jason Batty, Founder, Eureka Energy Claims