Business Energy Claims
You may be owed money from your business energy contract
If you are a business owner in the UK, you may be entitled to compensation if you used a broker to organise your gas and electricity contracts. This is due to the broker not acting in your best interests as required by law. If this is the case, you may be due the excess between what you paid and what would have been the best deal for your circumstances.
Key business energy claim points:
- Some energy brokers may have financially benefited by not fully disclosing agreements and/or relationships with energy providers when arranging energy contracts.
- A business energy claim is a legal process that allows businesses to recover money if they have been mis-sold an energy contract.
- Group business energy claims are more financially viable due to the costs of litigation. If you believe you may have been mis-sold an energy contract, then you should engage a specialist business energy claims company.
What are business energy claims?
A business energy claim is a legal process that allows businesses to recover money if they have been mis-sold an energy contract. This can happen if an energy broker or supplier has not disclosed all of the terms of the contract, or if they have made misleading statements about the contract. This can result in an energy broker not acting in your best interests in presenting energy contract options; i.e. contracts that provide a financial incentive for the broker rather than the what is best for your business.
Energy brokers are legally obligated to disclose any commissions that they earn from an energy supplier. If they have not disclosed these to you before you engaged in the contract, or disclosed them in a misleading way – such as claiming reduced or no commissions – then this contract would be determined to be mis-sold.
Energy suppliers are sometimes allowed to charge businesses additional fees for things like standing charges, meter charges, or administration fees. However, these charges must be reasonable and effectively communicated by the energy broker. If they are determined to be excessive or inflated, then the business may be able to make a claim.
You will be able to make a business energy claim through a legal representative if the above applies to you. If successful, you will be paid back the difference between the cost of your contract and what you would have paid had your broker found a contract that represented your best interests.
How can you tell if you can make a business energy claim?
When looking at your contract and communication with an energy broker, there are some red flags that can indicate you can make a business energy claim. You should have received all the terms of your contract in writing. If not, then you may not have been given all of the information that you needed to make an informed decision about the contract.
In essence, you should have been clearly informed of all of the below by your broker:
- What commission, if any, was paid
- If they have preferential relationships with certain suppliers
- If their commission was affected by the contract length
- Did you actually make any savings on the contract
- Were you informed that broker commission is often absorbed by increasing the unit cost of your energy
How to make a business energy claim
While it may seem that making a business energy claim is complex, engaging a specialist legal representative can greatly simplify the process.
It’s essential to gather all evidence and documents of your contract. These should include copies of your energy contract, invoices as well as communication records where appropriate.
Once you have collected this information, fill out this registration form. We will be able to assess your claim and if it is determined that you were the subject of a mis-sold contract, we will act on your behalf to recover the funds.
The form will ask you for the information on your broker or brokers for the last 12 years. How that broker first approached you as well as other relevant questions as indicated above.
What happens next?
As this is a group action, we are providing time for as many businesses as possible to join the claim. Once you have registered, we will keep you up to date with any relevant news and information.
Your claim will be grouped with other businesses to make it financially viable to take legal action. It’s important to have a reasonable expectation of timelines as processes like this can take a long time for a resolution. It is likely that we may only see a result after five years unless the defendants elect for an early settlement.
Is there a cost to making a business energy claim?
There are no upfront costs to joining the group legal action as we are acting on a no-win, no-fee basis. Essentially, we will cover all costs associated with the case with no financial liability falling on you. Should your claim succeed, you will then be charged 33% (plus VAT if applicable) of any funds reimbursed or share of other disbursements to you.
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