Energy mis-selling: is there any protection for small businesses?

Whilst consumer rights exist for domestic energy customers, leading energy litigation specialists, Energy Solicitors Ltd, are questioning whether there is enough support for businesses who are falling victim to energy mis-selling.

Consumer rights are legal rights which protect consumers when they purchase a product or service, but this does not extend to protect non-domestic customers, and there are thousands of businesses left without support.

Whilst new proposals will grant 200,000 businesses access to The Energy Ombudsman, the experts at Energy Solicitors Ltd are questioning whether these changes are enough.

Senior Partner, Victoria Myers, said: “When it comes to energy mis-selling, the historical fragmentation of the market and a lack of regulation has resulted in many businesses falling victim to mis-selling through hidden commissions and incurring substantial losses.

“Unfortunately, there is still limited support for those businesses who have been affected, which means there’s a substantial gap that isn’t being addressed - that’s where we can step in.”

What is energy mis-selling?

Energy suppliers and brokers are bound by certain rules and regulations, dictated by Ofgem or codes of practice that they have signed up to – this includes “fiduciary duties”.

Energy brokers have a fiduciary duty to act in your best interests, meaning they legally have to disclose any commissions earned, but over the years many have made misleading statements or concealed their financial incentives.

Victoria continues: “If you’ve used an energy broker, they may have added hidden commission into your energy contracts without clearly explaining it - they may even have told you that the service was free, or that they got their commission from the supplier as an “introducers fee” or words to that effect.

“Typically, most brokers receive their commission directly from the supplier they place you with, and it is built into the unit price they arrange for you, but it is often the case that this is not disclosed to the customer.

“That is where Energy Solicitors come in, to fight your corner and recover money that is rightfully yours.”

Energy Solicitors is a specialist law firm dedicated to energy litigation for businesses and households. With over 20 years litigation experience, we have an in-depth understanding of the legal claims process, which enables us to adopt a cutting-edge approach to litigation.

For more information or for expert advice, email info@energysolicitors.co.uk or get in touch.