{"id":231716,"date":"2024-05-23T13:38:32","date_gmt":"2024-05-23T13:38:32","guid":{"rendered":"https:\/\/dominiclevent.com\/blog\/?p=231716"},"modified":"2024-05-23T13:38:32","modified_gmt":"2024-05-23T13:38:32","slug":"energy-litigation-expert-warns-hidden-commissions-just-the-tip-of-the-iceberg-business-energy","status":"publish","type":"post","link":"https:\/\/dominiclevent.com\/blog\/energy-litigation-expert-warns-hidden-commissions-just-the-tip-of-the-iceberg-business-energy\/","title":{"rendered":"Energy litigation expert warns hidden commissions just the tip of the iceberg – Business Energy"},"content":{"rendered":"\n
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Mis-sold commercial energy claims are on the rise nationwide, but leading litigation experts are warning there could be thousands of small businesses who still have no idea they have been targeted.<\/p>\n

Earlier this year, North Tyneside-based Business Energy Claims (BEC) hit the headlines after helping recover more than \u00a314,000 for a small amusement arcade business after energy provider Engie was found liable for failing to disclose the commission a broker was making from the contract.<\/p>\n

The groundbreaking ruling against Engie opened the floodgates for further claims from businesses which have found themselves in a similar position \u2013 but this appears to be just the tip of the iceberg.<\/p>\n

The mis-selling of energy contracts scandal appears to be far more than just a problem with unscrupulous brokers. Instead, it\u2019s a multi-faceted issue, according to Callum Thompson, the managing director at BEC and Energy Solicitors Ltd (ESL).<\/p>\n

ESL is a dedicated law firm which works in partnership with sister organisation Business Energy<\/a> Claims (BEC) to support businesses affected by mis-sold energy contracts.<\/p>\n

As the only company with specialist business energy consultancy knowledge, ESL\u2019s\u00a0 experienced team has an unrivalled level of expertise and specialises specifically in energy-related disputes.<\/p>\n

Mr Thompson is concerned that many people still won\u2019t know they could have a claim, and he and his colleagues are on a mission to ensure businesses that have experienced any kind of unscrupulous behaviour from intermediaries or commercial energy suppliers get the opportunity to redress the situation.<\/p>\n

\u201cThe business energy landscape can be quite complex, or certainly it is often made that way for the customer so they struggle to understand exactly what they are paying for,\u201d Mr Thompson said. \u201cThis can lead to things such as mis-selling and overcharging for instance.<\/p>\n

\u201cThis whole thing is a huge minefield and every day we are hearing from people who\u2019ve been heavily impacted and more often than not don\u2019t realise it\u2019s happened.<\/p>\n

\u201cBusiness owners may not have the time or knowledge to fully understand the energy industry and many could face issues that might impact their business, whether that be undisclosed commission, being pursued by brokers for lost commission, energy overcharging and the threat of data breaches.\u201d<\/p>\n

So what pitfalls should small businesses owners<\/a> be looking for?<\/p>\n

Last month, the Department of Energy Security and Net Zero (DESNZ) announced how businesses will soon have access to free support to resolve issues with energy contracts<\/a> as part of government and Ofgem changes to tackle hidden fees, issues and mis-sold services.<\/p>\n

Mr Thompson, however, points out this is by no means a panacea. \u201cWhile I think everyone welcomed this move, there is still a massive group of businesses who won\u2019t fit the bill to benefit from this,\u201d he said.<\/p>\n

\u201cThere are a number of people who won\u2019t be able to use this service (based on historic cases) which means there\u2019s a gap there which isn\u2019t being addressed \u2013 that\u2019s where we can step in.\u201d<\/p>\n

Another big issue centres around protection of sensitive data. Following a rise in the number of energy suppliers and brokers going bust in recent years, there has been an increase in data breaches.<\/p>\n

\u201cWhen this happened, we saw a lot of people being automatically switched to different suppliers which has, in some circumstances, led to some data breaches, \u201d said Thompson.<\/p>\n

\u201cWe\u2019re certainly seeing more calls for us to step in to help defend these data breach claims at the moment and it\u2019s something that is potentially very frightening for people.<\/p>\n

\u201cNobody wants to imagine their data has fallen into the wrong hands and it can lead to all kinds of problems so it\u2019s something we find a lot of people are, quite rightfully, very concerned about.\u201d<\/p>\n

The BEC team has also noted a lot more enquiries about revenue recovery over the last 12 months.<\/p>\n

This is a process of energy firms pursuing businesses for alleged lost revenue, representing the sum of commission they say that they would have earned for contracts that were due to go live, but subsequently didn\u2019t.<\/p>\n

It\u2019s something which has risen in prominence particularly over the last 12 months, as Mr Thompson explained: \u201cSometimes energy contracts won\u2019t go as initially planned or often someone doesn\u2019t take up a contract which a broker has recommended and that can result in a broker calling in a debt resolution service to recover the money they think they\u2019re owed.<\/p>\n

\u201cThere are many other reasons<\/a> why these kinds of disputes can arise but they can have a detrimental impact on the person or business involved. A key area of concern for us is that we have a growing number of businesses being pursued by brokers for lost commissions.\u201d<\/p>\n

Additionally, high pressure sales tactics continue to come under fire, as many businesses continue to fall victim<\/a>.<\/p>\n

\u201cCustomers feeling like they\u2019ve pushed into an agreement is a recurring theme. Typically, smaller businesses will have someone looking after their energy but often, due to the pressure on them to secure the best deal, they can be pushed down a certain route when they don\u2019t have all the correct information to hand.<\/p>\n

\u201cWe see so many examples of people being pressured into a contract that may not be the best one for them.<\/p>\n

\u201cThere are many other areas where we have been able to help clients, things like threats of disconnection and other areas including mis-selling or misrepresentation.<\/p>\n

\u201cThere are many pitfalls and issues that can affect small businesses<\/a>, so it\u2019s vital to know your rights and what you could be entitled to if you have, or believe you may have, been mis-sold or misrepresented in your energy contract.<\/p>\n

\u201cWe have helped hundreds of businesses across the country win compensation. We offer a no win no fee structure because we understand the challenging environment many smaller and medium businesses find themselves in. Energy and other bills are high enough for businesses already struggling, without the added challenge of being overcharged or mis-sold.<\/p>\n

\u201cIt\u2019s really simple to access our support on https:\/\/businessenergyclaims.co.uk\/<\/a> or\u00a0 https:\/\/energysolicitors.co.uk\/<\/a> .<\/p>\n

Together with its panel of leading law firms, it is seeking to enable businesses to understand the nature of the deals they have done and recover monies where they have been overcharged.<\/p>\n<\/div>\n\n

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