Introduction
Mis-selling of business energy contracts is a concerning issue for UK businesses. Energy brokers, who act as middlemen between businesses and energy suppliers, are often found to include hidden commissions in contracts without adequately disclosing them to the client. This case study explores the legal and regulatory implications surrounding the issue of undisclosed commissions in business energy contracts and details how Sentry Funding’s Rapid Raise Two funding product helps businesses seek justice.
Problem
Many businesses use energy brokers to secure their energy needs. However, hidden commissions within these contracts can create unnecessary and unfair expenses for businesses. Brokers may conceal these commissions within the unit price or mislead clients by claiming that their service is free or the commission is merely an “introducer’s fee”. The lack of transparency raises serious concerns about the fair treatment of businesses, potential regulatory breaches, and inflated energy costs.
Legal Context and References
Ofgem Standards and Regulations: Ofgem, the UK energy regulator, has a set of standards and regulations to protect businesses from unfair practices in the energy sector. This includes the requirement for energy brokers to disclose any commissions earned.
Consumer Protection from Unfair Trading Regulations: These regulations outline that unfair commercial practices, such as misleading omissions or aggressive practices, are prohibited. Hidden commissions can be seen as a misleading omission, which would be considered a violation of these regulations.
Solution
To address the issue of undisclosed commissions in business energy agreements, Sentry Funding offers a comprehensive solution through our Rapid Raise Two product. This solution combines funding and streamlined case management to enable consumers to seek fair compensation and remedies for any harm suffered due to undisclosed commissions.
Detailing the Solution:
- Legal Expertise: Sentry Funding works with a panel of experienced lawyers specialising in business energy claims. These legal professionals assess the merits of each claim, guide consumers through the legal process, and ensure their rights are protected throughout the resolution.
- Funding Options: The Rapid Raise Two funding product, supports businesses in pursuing their business claims without upfront costs. This funding enables consumers to seek fair compensation and legal remedies while alleviating financial constraints.
- Streamlined Case Management: The Sentry Portal provides a user-friendly online platform, empowering law firms to efficiently manage their business claims. The platform facilitates secure communication, document sharing, and updates, ensuring effective collaboration between legal representatives and third parties.
Conclusion
Sentry Funding working with specialist law firms empower businesses to take action against undisclosed commissions in business energy contracts. By combining legal expertise, dispute resolution strategies, and customer-centric support, businesses can navigate the legal process with ease. With Sentry Funding, businesses can take steps towards securing fair treatment in the energy market, thereby encouraging greater transparency and accountability among energy brokers.
Note: This case study provides a general overview of addressing undisclosed commissions in business energy contracts. It is crucial to consult with legal professionals specialising in business energy claims and the applicable laws and regulations in the relevant jurisdiction for specific advice tailored to individual cases.
July 17, 2023
Case Studies
