FAQs

Brokers act as ‘middle-men’ or third-party intermediaries to help bridge the gap between suppliers and buyers. This is no different in the energy industry, with energy brokers used to help businesses get the best deals and rates for their gas and electricity.

They work across all aspects of the energy sector, such as ‘Big Six’ companies such as British Gas, Scottish Power, EDF, npower, Eon and SSE) – but can also work alongside smaller suppliers, structuring deals and contracts on behalf of their clients.

Although some brokers may work in partnership with a certain supplier, claiming that their introducers ‘fee’ is paid by the energy company, they are usually independent businesses.

Brokers within the energy industry still follow all the conventions of a traditional intermediary. They purchase a product at wholesale prices – which is already at a cheaper cost than domestic consumers or business owners could access – and mark it up.

This is a balancing act, as the point of a broker is to scout the market and supply your business with a cheaper deal than what could have been provided straight from the energy company themselves.

Of course, they have to do this while making a profit, which is why brokers will usually make a commission on each deal they structure.

If they disclose the amount that is made from your contract, then the process is perfectly legal and you may have gotten the best deal.

However, if your broker tries to conceal how much has been made, more often than not this means that there has been a significant uplift written into your contract – without your knowledge.

This is a mis-sold business energy contract.

Although it’s hard to provide exact figures for how much commission an energy broker might make on a contract, it is likely that a portion of your rate will go towards their pay.

Energy brokers work with a range of suppliers to get you the best deal – in theory. So whether you are looking for a quick way to source your business’ energy or are looking to make significant savings, enlisting the help of an energy broker should make things easier.

Brokers will network with a number of suppliers, sometimes gaining access to ‘special’ rates that are dependent on a number of factors and conditions. This might be client volume or contract length.

How much commission they make on a deal will correlate with how many successful deals they have secured on the supplier’s behalf, often resulting in the complete opposite of what business owners wanted.

In many cases, the supplier that the broker says they’ve ‘scoured the market’ for might end up being the one that offers the best profit margin. Obviously, this benefits everyone but the client.

The amount of this commission can vary depending on the deal and broker, but we often see that longer contract terms produce better compensation as it’s cut into the terms and conditions.

This is often left undisclosed to businesses – even if you signed a contract or had a verbal agreement – often hidden in lengthy terms and conditions or glossed over entirely.

The broker may also mislead the client by claiming that the supplier pays the fee, or that their services are free.

This is deliberately mis-selling a business energy contract and is against the law.

The key thing for businesses to remember is that the customer must know how much brokers are set to make on their deal, regardless of how much that figure may be.

There are thousands of energy brokers up and down the country, operating on an individual basis or as part of a wider intermediary company.

If you choose to use an energy broker for your gas and electricity needs, make sure to fully research who you plan on using – or explore your options first.

It also helps to outline your requirements and make these clear from the very beginning, such as:

• The length of the contract you wish to take out
• Your usage needs
• What type of energy you’ll need to run your business
• Which location (or multiple spaces) you’d like to structure a plan for

This will reduce the chance of getting sold into a much lengthier contract or unnecessary add-ons that could be used to ‘hide’ further commission.

Depending on your needs, businesses can benefit from using an energy broker.

The main reasons business owners choose to use an energy broker is to save them time and money, as the broker handles much of the process on behalf of their clients.

Arguably, brokers advertise that they have more experience and market knowledge than those who do not actively work in the industry. This is an advantage when it comes to comparing rates.

To busy business owners, energy brokers are an effective way to help facilitate new contracts from one supplier to another – without having to navigate the complexities of the energy market.

On paper, a broker should come back with effective and accurate information on comparable tariffs, giving their clients a better scope of choice.

They should also give you the best prices and make a significant saving for your switch. Many brokers say they have ‘trusted relationships’ with suppliers which allows them to negotiate and reduce your bill.

In many cases, this could be true, but we suggest asking for a full breakdown of costs.

This will help you get full visibility on your deal, so you can see exactly where these savings are coming from – or if you’re making them at all.

This also gives your broker the opportunity to disclose their commissary fee.

The choice to use an energy broker is entirely up to you. However, we remind our clients that their services are not free, so it’s important to choose the right one for you and your business’s unique needs.

The industry in which Energy Brokers operate is largely unregulated at present.

It’s hard for disciplinary authorities to take action on the non-disclosure of commission, especially when this issue isn’t prevalent in the consumer market. Brokers are able to continue this practice on hundreds of unsuspecting businesses, even when larger authorities, such as Ofgem, struggle to penalise and deter those caught.

Our team can, however, claim larger rebates for your company as a result.

Usually, business energy costs are cheaper than consumer prices.

This is because the average usage rate for regular consumers is smaller than a business (try comparing the amount of energy needed to keep the lights on at several retail spots against boiling a kettle several times a day)!

As such, bigger businesses are more likely to enjoy a cheaper unit rate because of this.

However, it’s important to keep an eye on further charges that businesses are subjected to, such as higher rates of VAT on their energy bills.

At present, domestic consumers are exempt from paying larger chunks of this tax, whereas businesses pay 20%.

In addition to VAT, businesses also have to pay the Climate Change Levy (CCL).

This is set to increase electricity costs by approximately half a penny per kWh.

As the energy crisis ramps up, it’s likely that this number will increase next year – so take care to watch this space.

Other than the obvious, there are plenty of differing factors that impact the way you structure, schedule and sort energy for business.

This includes:

• The length of your contract

More often than not, commercial energy contracts are available on a variable and fixed rate, but most contracts are taken out for a predetermined length of time. This can span between a number of months to even five years.

It’s important to note that you won’t be able to source a new contract until your current one is up for renewal. This period runs between one or six months before the business contract ends.

Additionally, businesses are usually signed into a longer-term contract in comparison to domestic customers. This is to accommodate the larger amounts of energy needed to keep businesses of all kinds up and running, which can make it more difficult for owners to switch or shop around if needed.

• The absence of a cooling-off period

Business gas and electricity contracts don’t offer the same amount of flexibility that their consumer counterparts do.

While domestic energy switches often take no more than two weeks to fully complete – with the bulk of that time classed as a ‘cooling off period’ where the contract can be cancelled without a fine – business deals are much more tying.

As a result, it’s crucial that you’re completely happy with your deal before signing on the dotted line. It might take you longer to get out of it!

• Single fuel only for businesses

At home, you probably use the same supplier to sort your gas and your electricity. This saves you plenty of stress when it comes to saving money and sourcing a straightforward deal, as both energy sources are handled in one ongoing payment.

Unfortunately, this isn’t possible for a longer-term energy contract in business, meaning you’ll have to find separate quotes for your electricity and gas at a rate you’re happy with. To save time and effort that would otherwise have been spent digging, we often hear that this is why many of our clients turn to the energy broker market.

• A case-by-case basis only for businesses

When you go to a supermarket, there’s nothing easier than grabbing a ready meal or something pre-packed straight off the shelf for dinner.

You can find similar packages when it comes to domestic energy, with the ability to choose from an impressive choice of tariffs before settling on the one that suits your use and budget.

For businesses, energy supplies work on a case-by-case basis. The prices are tailored specifically for your usage and need, providing a bespoke deal that means your contract fits your business perfectly.

However, it can also cause problems if you’d like to shop around and compare, as you’ll have to find out the unit price from each supplier separately.

Of course, comparing quotes through a broker can be helpful, as they’ll do all of this for you. Just make sure any fees are fully disclosed or you could be mis-sold energy – which is where we come in.

As a business owner, you’ll know how important it is to have a reliable – and cost-effective – way to heat your office, power those laptops and keep your manufacturing processes running.

Although power works the same no matter what you’re plugging into it, business energy is structured differently to domestic supply on two fundamental levels.

The first is the standing charge, which is what you can use to compare business energy rates between suppliers.

This charge is what you must pay in order to have electricity or gas sent directly to your business’ property. You can see this dispensed at a daily rate.

The second way to judge how much energy your business is using is through kWh.

A kWh is used to measure a small amount of energy used, which translates to how much you’ll be paying for every unit you use.

It’s useful to have an idea of how much you use on a monthly or annual basis before you search for energy, helping you compare rates more quickly and easily.

It can also help you spot possible discrepancies in your overall energy bill when the time comes to review, giving you insight as to whether your broker was deliberately mis-selling energy to you.

Their fees can sometimes be hidden within the body of the contract or by putting your electricity or gas at higher rates than normal.

So if your business has fallen foul of energy mis-selling and you think you’ve overpaid, get in touch with our team today. We’d be more than happy to help.

Usually, businesses will struggle to switch energy suppliers before their contract ends.

This is because there are often ‘tie in’ clauses that dictate when your supply ends, with ‘cool off’ periods only available to a domestic customer base.

As such, it’s important to read the fine print of your contract before agreeing to it, considering whether you’re truly happy with the length and possible price fluctuation before you sign on the dotted line.

However, there are a few cases where you may be able to switch to a new supplier, such as:

• Your contract does not have a ‘tie in’ – make sure you’re not caught out by checking your contract’s wording, as this may be phrased differently.
• Taking over a new office or retail premises, for example, might have placed you on a ‘deemed’ tariff that you didn’t choose.
• You have reached the end of your contract’s fixed term.

If you own a larger business, bear in mind that it will likely be more difficult to switch while bound to a contract before it lapses.

This is because many energy companies don’t offer a ‘cool down’ period to businesses (even SMEs and those classed as micro-businesses) as they usually provide a tailored service to fit each enterprise’s power need.

If you’re unhappy with your service or energy supply, it might be easier to discuss this directly with the company. You could find yourself paying much more to end things earlier than agreed in your contract.

Getting out of a business energy contract (and how you go about it) depends on the kind of contract you signed and the type of business you own.

But knowing how to terminate your contract is crucial, as business energy suppliers will build in an auto-renewal feature after the initial term unless otherwise specified – for example, if you own what is classed as a ‘micro-business.’

If you do not terminate your agreement, then it means that your existing energy contract can be ‘rolled over’ into a fresh binding contract that can last anywhere between 12 months to two years, depending on the supplier.

That’s why we recommend keeping an eye on when your renewal dates are due up. This gives you enough time to ‘shop around’ to see whether the grass is greener on the other side, allowing you to cut ties with your current supplier at exactly the right time.

It also allows you to dodge any potential penalties that come from switching out during your contract term.

Missing renewal dates is how many businesses end up having to accept price increases or stick with a supplier they aren’t happy with, or inadvertently get charged for not supplying their energy company with a termination within the correct time frame.

The key thing to remember is that your energy supplier does not have to let you know that your contract is up. In fact, they would rather assume that you’re happy with their service and allow an automatic renewal.

You will normally only receive a letter from a supplier if they want to send you renewal prices. This happens after most of the minimum notice period has passed and you are stuck with what they offer – disguised as upcoming offers rather than a price hike.

Suppliers’ letters are often overlooked by businesses, although you should look at your renewal offer immediately if your supplier sends you one.

It may only be valid for a short time, although they usually do not specify not how much more you’ll have to pay or what percentage is being increased.

As such, it’s your responsibility to stay on top of your contract and be smart about when and where you want to move.

Due to hidden commissions that brokers have illegally included into their contracts, an increasing number of businesses are finding out that they may be eligible to make a claim over their company’s energy supply.

You see, brokers are required by law to inform you when a commission has been made – especially because many of them deduct fees immediately from your bill, which can make some gas or electricity fees seem higher than usual.

As these energy brokers are meant to serve as a liaison between corporations and energy providers (negotiating contracts on your behalf in exchange for a fee or an additional commission) – some work with energy suppliers to bind you into a longer contract.

This leads to brokers gaining financial incentives from the energy provider you’ve chosen, profiting by purposefully misrepresenting energy contracts to millions of hard-working business owners.

If that sounds like something you’ve experienced, then you could make a business energy claim.

The Process

We can quickly determine whether you qualify based on our specialist legal backgrounds and industry experience.

We handle all paperwork involved with building a case and collecting the money if we discover you have been mis-sold on your energy contract by a broker.

Our team keeps things hassle-free from the moment you contact us to the moment your rebate is transferred – it’s as simple as giving us a few details and we’ll do the rest.

Start by picking up the phone or use our super straightforward online form to get started. We’ll put you through for a free assessment with one of our team, who will be able to get things moving.

If we find that you’re eligible for a claim and you decide that you’d like our help, our team can jump into action, getting all the details to make sure we can build a solid and successful case.

We’ll ask for information such as:

• The name of the broker you used and copies of your invoices.
• A copy of the supply contract.
• Any other useful documents you have to hand will help us strengthen your claim.

But don’t worry if you don’t have all the information you need to hand – we can get this for you as part of our efficient service.

Our team will begin valuing your claim once we receive your documents and any further information. You won’t have to worry about paperwork or liaising directly with the broker and energy suppliers, as we handle everything for you.

In the event of a successful mis-selling claim, your rebate will be returned to you without any fees – ensuring a seamless and stress-free process!

If I don’t have a claim, what happens then?

Honestly, it’s pretty straightforward if we find that you don’t have a claim.

If everything is functioning as it should, we’ll soon get in touch with you to let you know so that you can resume your normal activities.

There’s no waiting around with us, as we’re well aware of how precious your time is – and not a single penny will be requested from you either.

However, a lot of our customers discover that they do have a strong case and can successfully file a claim.

Get in touch with us today to see if we can help.

In light of the unique nature of every case, our team will be able to determine how much we can secure for you using our industry insights and experience.

Our first step will be to determine if you qualify for a rebate. Our legal team can then use the evidence provided to us to outline a claim based on the confirmation of this.

We’ll be able to provide a rough valuation of your claim based on the correspondence you had with the broker, any energy bills and the contract itself.

There are many different types of cases and clients we handle at Business Energy Claimline, where we have managed to uncover significant amounts of energy bill payments through rebates.

Want to find out more? Get in touch with us today.

If you’re not sure whether you’re eligible to make a claim, it couldn’t be quicker or easier to find out.

All you have to do is fill out our convenient online form and a member of our team will contact you to let you know if your company qualifies to submit a claim.

We’ll touch on a few of the requirements we use to make sure you receive the best assistance possible in this area – so your time is used in the best way.

With the aid of Business Energy Claimline, we have assisted businesses from a range of sectors and industries to recoup money lost as a result of mis-sold contracts.

Eligibility at a glance

If you’re stuck wondering whether you are eligible to claim, our team find the following as helpful starting points:

• Are you a business owner or someone in charge of organising energy contracts for one or multiple businesses?
• Have you used a broker to supply gas or electricity for your business?
• Have you signed a contract that provides energy for a serviced office space that doesn’t come with power supplied?

In any of these cases, if you’re an enterprise that has used an energy broker to source the power to one or more business locations, then you could be eligible for a mis-sold energy rebate payment.

So what happens now?

Well, the fastest way to find out if you could be in with a claim is to get in touch with our experts.

To make sure everything runs smoothly, please have the address that your contract is registered to and the name of the energy broker to hand.

This will help us get your claim moving quickly and efficiently.