Energy bills set to rise- Is your business paying hidden fees?

Energy costs are once again moving upwards. Cornwall Insight has forecast that bills will rise this October, taking the average annual household bill to £1,737. Although this figure applies to domestic customers, the reality for businesses is even more challenging. There is no price cap for commercial energy which means that companies are exposed to the full impact of wholesale price changes and policy costs.

The wider economy is already showing signs of strain. Official figures confirm that UK growth slowed to 0.3 percent in the second quarter of the year, down from 0.7 percent in the first. Rising business costs are a major driver of this slowdown. Increases in wages, National Insurance, local taxes, energy and other utilities are squeezing margins and causing many firms to put investment on hold. Businesses are now having to focus on keeping costs under control simply to protect their future.

At Energy Solicitors we see first-hand how these pressures are being made worse by hidden costs within energy contracts. Many businesses that procured their energy through a broker have unknowingly paid commissions that were not properly disclosed. In some cases these secret commissions inflated bills by as much as fifty percent. The courts and regulators have been clear that brokers and suppliers must act transparently, and reforms now mean businesses can demand information on past commissions. The Energy Ombudsman also has new powers to help smaller businesses pursue disputes.

This creates a real opportunity. Rising bills may feel unavoidable, but if your company has ever used an energy broker you may be entitled to bring a claim for compensation. Successful claims can recover the hidden commission plus interest, and the sums involved are often very significant.

At a time when costs are climbing and growth is slowing, recovering money that should never have been paid can make a genuine difference to your business. If you suspect that you were charged a hidden commission, contact Energy Solicitors today. We can review your position, explain your options and help you make a claim.