Delay in Business Energy Mis-selling Reforms Will See Scandal Continue
With business energy mis-selling reforms not due until 2022 at the earliest, thousands more businesses may be mis-sold.
Ofgem, the energy regulator, has promised to crack down on unscrupulous energy brokers who mis-sell energy contracts and make healthy profits out of them at the cost of their clients.
However, new rules and regulations to provide much-needed industry regulation in the business energy broker sector will not be rolled out immediately, allowing brokers to continue the growing trend of mis-selling.
What is a business energy claim?
A business energy claim is an attempt to recover compensation for a company, organisation or charity of any size who have been mis-sold business energy by a third party or broker. More than likely, they will have used the services of a broker to set up a deal with an energy provider on the understanding the broker will seek to get the best value contract on offer at the time.
In reality, many brokers will look for companies who offer favourable commission fees, which are often hidden from the client. They may also tie clients down to longer-term contracts which simply won’t be the best value over the term of their deal, thus locking them into a bad deal, but one that will benefit the broker.
But there is a way to fight back against this injustice. By starting a business energy claim with Winns, you can instruct a team with expertise in the process of recovering compensation following business energy mis-selling and they will get a financial settlement while helping you find a far better deal in the process.
How long will it take before anything can be done about unscrupulous brokers?
Ofgem are anticipated to make reforms, including the need for transparency from the broker in relation to commission fees involved in the deal, in 2022. This, however, is only an estimate and may take longer, which leaves companies vulnerable to the practices of those brokers who knowingly add cost to a contract and get deals that aren’t in the best interests of their clients.
How much do businesses and charities spend per year on energy?
The business energy market is vast, with approximately £25bn spent, per annum, on energy. This statistic, courtesy of Ofgem, highlights the size and scale of the market and the reason why certain brokers see it as an attractive one to operate in.
How many brokers are there?
There are thousands of brokers. Their primary role should be to get the best, and most appropriate, deal for their client based on their circumstances. What actually happens, it has transpired, is something very different with certain brokers not adhering to this philosophy.
The business energy market is attractive to brokers as it is largely unregulated and it doesn’t cost too much to set up as a broker, with potentially big returns.
Why choose Winns?
Winns specialises in business energy claims and recovering compensation for our clients. Our dedicated team will diligently analyse the contracts relevant to your claim before deciding if mis-selling is evident. Then our legal team will tirelessly pursue those responsible and gain you the compensation you deserve.
Winns, as a large legal firm, is regulated by the Solicitors Regulation Authority, which means we must adhere to the highest standards of legal conduct. This is not the case with the majority of our competitors. By making your claim with Winns, you can be reassured your claim is in safe hands.
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Winn Group owed thousands from energy mis-selling
"We are now pursuing the mis-sellers and anticipate a good pay out in compensation."