‘Unscrupulous’ Energy Brokers to be Held Accountable
UK energy regulator Ofgem is set to confront the widespread poor practices of ‘unscrupulous’ energy brokers.
The move will force brokers to disclose the true cost of energy deals which they have arranged, including commission fees being explicitly displayed.
Hidden commission fees are predicted to have cost ultra-small companies up to £2bn – as reported by the Guardian - through the practice of hiding these fees in deals, with a regular feature of the industry seeing deals arranged by a broker despite it not being in the best interests of the client.
These bad deals see businesses locked into long-term deals which don’t represent best value for money because the broker is due preferential commission fees.
Largely unregulated, the energy broker industry is now set to come under the spotlight of the regulator, as microbusinesses spend a total of £25bn on energy bills every year, with two-thirds bought through brokers.
Describing their focus, Anna Rossington, Ofgem’s interim retail director, said; “[Ofgem will] crackdown on poor practice and empower microbusiness customers. We are also sending out a clear signal to industry about the high standards we expect.”
Winn Solicitors – who have created a service designed to help companies recover compensation if they have been mis-sold energy deals – have themselves been the victim of this practice, with approximately £80,000 currently being recovered.
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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."