Following a landmark case in Leeds County Court relating to hidden fees in bills, energy customers could reportedly receive payouts worth billions.
Businesses with a turnover of less than £1.8m could now seek compensation over energy broker fees hidden within their bills.
The I Newspaper reported that Queenies Casino Slots recouped more than £10,000 from French power company Engie in a court case over undisclosed broker fees. The claim centred on the failure of the broker to disclose their commission arrangements with the energy provider.
The judge ruled that the energy broker had charged hidden fees to the business’s energy bills, ruling that there was deliberate concealment. The Judge found that it was Engie’s policy to not reveal the size or nature of this commission.
Energy brokers legally must disclose any commissions earned, but over the years it is reported that many have made misleading vague statements or concealed their financial incentives.
Whilst many businesses know the broker will be paid in some form, they may not have known the exact amount or more importantly that they, the business, would incur the charges for this.
This can result in a conflict of interest between the broker and the business with the broker determining the size of the commission which goes against the business best interest.
A 2018 Ofgem survey found that 67% of small and microbusinesses used the services of a broker to help choose a tariff. Fixed rates up to five years and no cooling off period means businesses are likely to have been legally locked into the arrangement.
If you thought the commission in an energy contract was being paid by the supplier and did not impact on your costs, then sadly you may be wrong.
If any of the above applies to you then you may have been mis-sold your energy contract, then contact us on 0800 368 5110 or email us at info@resolvedclaims.co.uk. We may be able to assist you in recovering compensation for hidden commission and losses.
