Bad practices have resulted in the most vulnerable – including care homes and churches – being targeted, and locked into deals that were not in customers’ interests, in return for financial incentives.

Energy companies have been incentivising brokers to lock small businesses into energy deals that were not in their best interests, but earned them lucrative commissions, a former energy broker-turned whistle blower has revealed.

Unscrupulous brokers have even been deliberately targeting specific types of organisations – such as churches and village halls, charities and care homes – which they viewed as less sophisticated; locking them into deals that would end up costing them more money, even though better deals were available. The commissions were merely built into the bill.

According to the whistleblower, who is working with Harcus Parker – the firm spearheading legal action, brokers knew they could get away with pocketing what could be thousands a month because they would not face any sanction from Ofgem.

They were routinely taking four-figured commissions at the expense of customers, as they viewed the regulator as toothless, and uninterested in ever cracking down on the practice.

With energy companies confident little would be done, brokers taking advantage of loopholes, and customers unable to easily complain, the practice flourished, even as the pandemic and the cost-of-living crisis meant businesses were fighting to keep their heads above water.

Even if an organisations realised they had been misled about the best deals available for them, brokers did not fear any consequences, with complaints directed to the energy supplier, who would merely refer them back to the broker to resolve.

In any case, the brokers would have to receive a large number of complaints before a supplier would take any action. A cooling off period and a proper complaints system are not available to organisations.

Leading litigation law firm Harcus Parker has written to several of the main gas and electricity suppliers in the first step in group litigation to reclaim commissions paid by suppliers to brokers without customers’ knowledge.

Solicitor Matthew Patching is available to explain how organisations affected can sign up.

More information on the claim, of which 5,000 businesses have already signed up, can be found here: https://protect-eu.mimecast.com/s/tN8sC4RqrhJ5KQxcM5I0t?domain=energylitigation.com

Notes to editors:

For more information and to arrange an interview, please contact:

sasha.nouyou@markettiers.com

07903 858 498

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