THINK did your broker tell you how much in total they made from arranging your deal?
THINK did your broker tell you that their service was free?
THINK did your broker tell you not to worry about ‘costs’ as they’d be given an ‘introducers fee’?
THINK did your broker force you to go with a specific supplier? (a potential preference for greater commissions)
THINK did your broker force you to take out a lengthy multi year contract to ‘secure the best rate’? (This is typically so they can earn a larger commission)
If You found yourself silently nodding your head in agreement to any of the points above, then it is very likely you’ve been mis sold.
Not only that, but many people didn’t know there are additional and often ‘cheaper’ energy options they could’ve been applicable for.
Let’s say you’re a business that uses 781,000 p/kWh of energy per annum on a 2 year contract. Then it’s likely you overpaid £15,620 in energy costs.
And let’s say you’re a business that used 561,000 p/kWh of gas per annum. Then it’s likely you overpaid by £11,220 in energy costs.
That’s a total of £26,840 per annum you shouldn’t have paid. Here’s how it works:
Energy mis selling, is when your energy broker did not disclose they were earning a commission for introducing you to a 3rd supplier. It was their legal duty to explain the specifics about the arrangement and how much they earn for their introduction.
In a lot of instances this could be the case. This is typically because businesses don’t shop around for a better rate. As a result a business will blindly pay old tariff charges when there are more cheaper tariff charges available. When a broker gets involved, they simply tell you to move supplier to get the latest rate.
No, you can secure good rates without having a multi year contract in place. Typically brokers will tell you to take a longer contract so they can continue to earn commissions for a larger period of time.
Because of how the information is displayed, misrepresentations are easy to be made when signing contracts. Even Financial directors struggle to spot these mistakes.
It’s hard to tell if you’ve been mis sold, but specialists can examine your contracts and cross reference specific suppliers rates at the time to quickly figure out if you’ve been overcharged and are owed a backpayment.
Yes, we absolutely agree. There are some sound businesses out there who will work hard to get you the best rate and play supplier off of each other to ensure you the best rate. However, they have a duty to tell you the specifics of their deal and how much they’ll earn for introducing you to their suppliers. Some brokers will add a modest fee, and others will dictate a higher charge for larger commissions in a time when energy is increasing in cost.
For every business it’s different. It depends on the length of term of your contract, the secret fee added to your energy usage, and how much energy you use per annum. The average claim is £25,000 with some claims worth millions.