How to spot the danger signs from unscrupulous brokers

Businesses are at risk of being left out in the cold and laying themselves wide open to mounting energy costs if they fail to spot the danger signs associated with unscrupulous brokers.

That’s the warning coming from Energy Solicitors Limited (ESL) as the leading litigation firm continues to fight for a fairer marketplace in a sector crying out for tighter regulation.

And ESL’s campaigning team is continuing to push for greater energy literacy at a time when red flags around third party intermediaries (TPIs) are frequently missed.

“It’s absolutely vital that businesses do their due diligence when it comes to energy contracts,” said ESL’s Victoria Myers.

“What we see time after time is that confusing electronic contracts can be the perfect place to hide fees that simply aren’t disclosed — or at the very least inadequately explained — at the point a contract is agreed.

“Our fear is that it’s becoming easier than ever for unscrupulous TPIs to close five and six-figure energy contracts without full disclosure.

“At ESL we’re on a mission to reclaim money lost to these hidden fees but we can also help businesses be better prepared at the point of negotiation.”

Red flags when dealing with TPIs can include:

• Representations about no commission being payable or suppliers paying the commission. This is rarely the case and should be questioned.
• A failure to fully explain electronic documents or highlight charges. Often the commission can be buried in electronic documents that customers are required to sign even though they’re not signposted to key details. 
• Pressure to secure a future energy contract well in advance of a contract end date. This is often unnecessary and may reflect a TPI’s personal interests rather than those of the customer.

ESL already boasts a wealth of experience when it comes to successfully resolving often complicated cases within the energy sector.

And Victoria adds: “Change needs to take place across the industry but until that change happens we’re here to represent those businesses most at risk from costly contracts that may well have been mis-sold.

“It’s clear that there are many TPIs out there who act with their clients’ best interests at heart and we support their contribution to an increasingly congested and complicated energy landscape.

“ESL has been encouraged by improvements in the conduct of TPIs across the UK but there’s still a long way to go.

“Our evidence shows that there’s still a serious amount of mis-selling taking place and we want businesses to beware the many pitfalls associated with an unregulated industry.”