3 Mis-Sold Energy Business Cases
Energy brokers are 3rd intermediaries who are meant to help businesses find the best energy deals for their needs. However, it has come to light that some brokers have been mis-selling energy contracts to unsuspecting business customers, leaving them with inflated energy bills and contractual obligations they didn't fully understand or expect. In this blog 3 classic examples how it has happened and how the energy brokers mis-sold each customer.
3 Case examples we know of…
Football club contract woes
In 2019, a football club in the UK was mis-sold an energy contract by a broker. The club was led to believe that they were signing up for a fixed-term contract with a reputable energy supplier, but in reality, the contract was variable and included hidden fees. The club was also not made aware of the contract's termination fees and was locked into an expensive contract that was costing them thousands of pounds more than they expected.
After discovering the mis-selling, the football club lodged a complaint with the energy broker and the supplier. Eventually, the supplier agreed to cancel the contract and waive the termination fees. The club also received compensation for the overcharges they had incurred.
The case of the care home being mis-sold
A care home in the UK was also mis-sold an energy contract by a broker. The broker claimed that they were offering a competitive fixed-term contract with a reputable supplier, but the contract was actually variable, and the care home was charged higher rates than they had been led to believe. The care home was also not informed of the contract's termination fees, which were substantial.
After discovering the mis-selling, the care home raised a complaint with the broker and the supplier. Eventually, the supplier agreed to cancel the contract and waive the termination fees, and the care home received compensation for the overcharges they had incurred.
Small business example
In another case of energy mis-selling, a small business in the UK was approached by a broker who claimed to be offering a fixed-term contract with a reputable supplier. The broker promised that the contract would save the business money on their energy bills, but in reality, the contract was variable and included hidden fees. The business was also not informed of the contract's termination fees, which were substantial.
After discovering the mis-selling, the business raised a complaint with the broker and the supplier. Eventually, the supplier agreed to cancel the contract and waive the termination fees, and the business received compensation for the overcharges they had incurred.
OuR Conclusion from these 3 Mis-Sold Cases…
Energy mis-selling by brokers is now a serious issue and that is why we are here to help. Hopefully the above examples highlight the importance of due diligence when signing up for an energy contract and the need to carefully review all the terms & conditions. We think businesses should also be especially wary of brokers who promise significant savings. Look out for them not fully disclosing the terms of the contract or their commissions.
If you suspect that your business has been a victim of energy mis-selling, then we can help recover those funds and analyse your previous contracts to see if the fees and commissions were hidden from you and not disclosed.
Reach out and contact us here
