Why it’s time to switch on to brokers’ fees

Leading litigation firm Energy Solicitors Limited (ESL) is ready to go into battle for businesses unaware that they may have fallen prey to hidden broker charges.

Latest Ofgem figures reveal that 12 per cent of companies switching energy contracts have no idea whether any additional fees apply.

And that gap in knowledge is giving unscrupulous third party intermediaries (TPIs) a golden opportunity to exploit an unregulated market.

“It shouldn’t be the case in 2025 that new energy contracts — and those who broker them — aren’t completely transparent,” said ESL’s Victoria Myers.

“Sadly we continue to see evidence of mis-sold contracts and hidden fees.

“Ofgem found that more than one in 10 business owners simply don’t know whether they’ve been charged by brokers.

“Well they should find out fast because that uncertainty could be costing their firm thousands of pounds.

“But business owners aren’t to blame. It can often come down to a lack of understanding around the complicated wording on contracts and bills.

“And even the most diligent of business owners isn’t necessarily going to be able to uncover hidden fees.”

The latest report by energy regulator Ofgem revealed only one in seven businesses believed they were charged by the broker responsible for recommending a new deal.

And of the minority who did believe they were charged, a third nevertheless admitted that the broker’s charges were unclear.

“Ofgem is saying that six out of seven businesses didn’t believe there were any broker charges associated with new energy contracts,” added Victoria.

“That’s very unlikely. Our experience is that fees — often hidden in the fine print — are commonplace.

“At ESL it’s our job to forensically assess a contract and if that contract has been mis-sold then we’ll know.

“At that point we’ll support our client every step of the way with the end goal of recouping money owed.”

ESL is on a mission to empower businesses hamstrung by deliberately misleading jargon and unsure how to navigate an unregulated energy market.

Victoria and her team is ready to help more firms claw back money owed and she said: “What Ofgem is saying chimes with what we’re seeing week in, week out.

“Until energy literacy improves and TPIs are forced to be more transparent then businesses need support from experts who can identify unscrupulous broker activity.”

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