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Business Energy Claims

Business Energy Claims Lawyers

Many businesses want to find the best deal in the gas and electricity markets. Using energy brokers to facilitate business energy contracts is a common practice going back to 1989. However, a surprising portion of your unit price may go towards commissions paid directly to the energy broker, leaving you paying more on energy bills than you originally expected.

Filing business energy claims for hidden commissions can retract a mis-sold business energy contract. At Sandstone Legal, our experienced staff offer legal help to businesses to navigate mis-sold energy claims.

We know that the energy broker market is widely unregulated, making it easy for brokers to make misleading statements that produce a hidden commission. If you are unaware that your business energy contract contains a secret commission for the energy broker, you may be able to seek compensation. Sandstone Legal can help.

How To Know if You’ve Been Mis-Sold a Business Energy Contract

Energy brokers are third-party intermediaries that serve as go-betweens for businesses and energy companies. Brokerages are businesses, so they charge commissions to manage daily operations and give value to their customers.

Business energy broker pricing

Business energy broker pricing can be confusing if you’re unsure of how the model works. Consider one business energy deal for 30p per kilowatt hour, and the broker’s commission is 3p/kWh. Your business will pay a total of 33p/kWh with the 3p/kWh commission paid to the broker by the supplier.

When arranging energy contracts, energy brokers should be upfront about the unit cost and their commissions. A mis-sold business energy deal may include an undisclosed commission or a lack of documentation outlining the energy broker’s fee. They could link their commissions to energy usage and attach broker fees to the business bill.

You may qualify for business energy claim compensation if your energy broker mis-sold your energy contract. Here are the most common reasons businesses become eligible for this type of claim:

  • Unexpected charges in energy bills: Unexplained increases in your business energy rates could indicate hidden rates in your contract.
  • No transparency: If your broker failed to provide a full written disclosure in your energy contract about the commissions they will receive from your business, they aren’t acting in your best interests. Energy brokers should openly provide that information in writing or clearly explain their commission structure to clients verbally at a minimum.
  • Long contract: Multi-year contracts benefit brokers more than businesses because the energy market is incredibly volatile. Be cautious of brokers who push for long-term business energy contracts.
  • Poor customer service: Energy suppliers and brokers should communicate openly with their clients and be willing to help them. Difficulties contacting your energy broker or their energy supplier, especially after submitting a complaint or enquiry form, may suggest that the broker has financial motives and won’t provide the level of service you expect from them.
  • Free services: Brokers who say they offer free services and get payment from their energy suppliers may be dishonest about how they get payment since commissions come from clients, not suppliers.
  • Partial or full refunds: Many brokers try to avoid business energy claims by offering their clients a refund. However, these refunds often require a signed document from the clients stating they will not pursue legal action against them or the energy companies.
  • Aggressive sales tactics: When energy brokers push hard to secure a business energy deal and make clients sign a contract without providing enough time for businesses to review it, they may be mis-selling their services. Brokers tend to deploy high-pressure sales tactics when they intentionally mislead people about their rates.
  • High early termination fees: If the broker charges a high one-time fee to terminate your contract before the end date, you could be a victim of mis-selling.

Continue reading for more details about the help you can receive if you think you qualify for a business energy claim.

How Much Are You Owed?

Compensation amounts from mis-sold business energy claims vary depending on several factors. For example, your business details, the extent of the mis-selling, and the level of financial harm you experience as a result of these poor business practices could impact your claim. The average claim includes recovery of all or a portion of the financial losses to the energy supplier or broker in addition to damages like stress and harm to your business’s reputation, which could lead to a substantial amount.

Collect evidence and pertinent information if you’re a business owner who used an energy broker but thinks you were mis-sold. 

Here is a list of what you’ll need:

  • An invoice from the supplier with your unit cost per kilowatt hour
  • Your business contract with a start date and end date
  • The name of the energy supplier.
  • You’ll also need to know your estimated annual gas and electricity usage with a distributor ID for your electricity meter.

Strict time limits apply for filing business energy claims and bringing complaints, so don’t wait to contact Sandstone Legal. Our solicitors assist businesses that used an energy broker that failed to live up to expectations by hiding their commissions or misleading businesses about them.

If you didn’t receive sufficient notice about the added cost of broker commissions either in writing or verbally during the sale, our legal team could help you pursue the full commission amount and additional damages with a reduction on your business energy costs.

Why Choose Sandstone Legal as Your Business Energy Claim Lawyers?

As one of the UK’s forward-thinking law firms, Sandstone Legal understands the complexities surrounding business energy claims and the troubles energy brokers bring when they mislead clients about their fee structures. We also know that some brokers recommended contracts with certain suppliers that generate higher commissions without adequately informing the clients who foot the bill.

Sandstone Legal will always act in our clients’ best interest. We strive to deliver outstanding customer service and legal guidance due to our years of legal experience and dedication to protecting the rights of businesses and consumers. Our law firm takes a client-first approach in everything we do and streamlines our processes to produce favourable outcomes for our clients whenever possible.

You can expect optimal efficiency in how we work and engage with others when you work with our experienced solicitors. Whether we advocate for your rights in the courtroom or help you settle your business energy claim and secure a better contract with a business energy supplier, you can be confident that the Sandstone Legal team will work diligently on your behalf.

You can count on our knowledgeable legal team to process your claim against an energy provider or broker on a no-win, no-fee basis. When we represent you on a no-win, no-fee basis, we won’t charge you for the initial work we provide to evaluate your claim.

If the case doesn’t proceed forward, we will not charge you. We charge legal fees if we win your case, and these legal fees will come from your overall compensation amount.

How To Make a Business Energy Claim With Sandstone Legal

Transparency about fees is a must when arranging energy contracts with brokers. Still, Sandstone Legal is here to help with business energy claims that cause business owners financial harm, uncertainty, and stress. If you suspect your energy broker mis-sold the business energy contract, our team can provide insightful legal advice, guidance, and representation in and out of the courtroom.

Our Sandstone Legal team fosters an approachable and accessible environment for clients. We strive to minimise your mental, emotional, and financial strain as we learn your needs, collect evidence, and tailor our legal strategy according to your specific business energy claim. As experienced solicitors with a history of successfully managing business energy claims, we know how to streamline our clients’ legal journeys without cutting corners.

You don’t have to navigate the legal landscape alone or unknowingly pay ongoing costs to an energy broker. Reach out to Sandstone Legal today by filling out the form below.