Home Business Services Major pay-out for transport company following energy mis-selling claim

Major pay-out for transport company following energy mis-selling claim

Callum Thompson

North East based Business Energy Claims has recovered more than £20,000 for a transport and logistics client, prompting it to call for companies to be alert to the issues of energy mis-selling.

The company won a claim against an energy broker after contacting Business Energy Claims.

To date it has successfully reclaimed millions of pounds for businesses across many sectors and is in the middle of a significant expansion and recruitment drive to meet the demand for its services.

Chief executive Callum Thompson said: “This is yet another business that has fallen victim to nefarious energy selling practices.


“I am delighted that we were able to secure redress and a considerable financial windfall. Energy brokers and suppliers must realise that it is unacceptable to hide the commission paid and received, which is one of the most commons ways of mis-selling.

“With significantly higher energy bills caused by rocketing wholesale prices it is even more important that businesses are aware of exactly what they are signing up to and how much they are actually paying for their energy, as opposed to undisclosed costs.

“While Ofgem is working towards a resolution of the issues, it will be a long time before its recommendations are implemented and there is still a huge number of businesses and organisations which have used an energy broker and are likely to have a claim.”

There are more than 2,000 brokers selling energy to businesses. The market is unregulated, and Business Energy Claims has identified a significant, and growing, number of cases of hidden charges and other forms of mis-selling. To date it has helped hundreds of businesses make claims from a few thousand pounds to £1.8 million.

The key areas of mis-selling by energy brokers are:

  • Hidden commission fees
  • Favouring suppliers offering brokers the best incentives
  • Selling contracts with the best incentives
  • Misrepresentation – claims regarding number of suppliers searched for ‘best price’
    Negligence – failure to take sufficient care in advice
  • Serious misconduct such as creating fabricated supplier rates (to favour the broker’s preferred choice), fictional price comparisons, agreeing contracts without the consumer’s consent.
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