Transport companies across the UK may be entitled to significant compensation due to mis-sold energy contracts. Many companies rely on energy brokers to secure business energy supplies, but these brokers are not regulated like energy suppliers.
As a result, some businesses have been victims of hidden commission deals and inadequate market comparisons. This article will explore the potential compensation owed to businesses that used energy brokers between 1989 and 2023 and provide guidance on making a claim.
The Role of Energy Brokers
Energy brokers act as intermediaries between businesses and energy suppliers, negotiating better contracts on behalf of their clients. While energy suppliers are regulated, brokers in the commercial energy sector are not. This lack of regulation has allowed some brokers to engage in unethical practices, such as hiding commission structures from customers and failing to conduct thorough market comparisons.
Mis-Sold Energy Contracts
Transport firms that used energy brokers between 1989 and 2023 may have been mis-sold energy contracts. These contracts often involved hidden commission fees, where brokers received compensation from energy suppliers for recommending their services to businesses. Even if the broker’s services were advertised as “free,” they still received commissions, which may have influenced their recommendations.
Potential Compensation
Fast Business Claims estimates that businesses who used energy brokers during the specified period could be owed tens of thousands of pounds in compensation. The amount of compensation varies depending on factors such as the size of the business and the extent of the mis-selling. In cases where brokers received undisclosed commissions, the average claim could amount to £47,000.
Signs of Mis-Sold Business Energy
It can be challenging to determine if a business has been mis-sold energy contracts due to the lack of transparency from energy brokers. However, there are some red flags to watch out for. If your energy broker failed to provide a written disclosure of their earnings from your contract, including any commissions or fees received from suppliers, this could indicate mis-selling. Additionally, if your broker was not upfront about these charges, they may have hidden them in your energy contract.
Qualifying for Compensation
To qualify for compensation, businesses must have used an energy broker to source energy between 1989 and 2023. If a broker was not involved, there is unlikely to be a claim. It’s important to note that claims can be made for both old and current business energy contracts. If you suspect that your business has been mis-sold energy contracts, visit fastbusinessclaims.com to assess your eligibility for compensation.
Conclusion
Thousands of businesses in the UK could be owed substantial compensation for mis-sold energy contracts. The role of energy brokers in securing business energy supplies has been marred by hidden commissions and inadequate market comparisons. If your business used an energy broker between 1989 and 2023, it’s crucial to assess whether you have been mis-sold and consider making a claim for compensation.
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