It is estimated around 50% of UK businesses use an energy broker to find them the right deal on their business energy.Unfortunately, some are mis-sold.
Business energy mis-selling is a real thing. It has been going on for decades. The issue became so prevalent and impactful that the energy regulator, Ofgem, stepped in five years ago with new rules for suppliers and brokers to protect businesses from mis-selling. These included an industry-wide code of practice for brokers to follow.
Those rules have gone a long way to addressing the issue. But they haven’t solved it.
The result of energy broker mis-selling is businesses end up paying more for their business electricity and gas than they should be. If your business has used a business energy broker in the past, then unbeknownst to you, you may have been mis-sold too.
Why do energy brokers mis-sell business energy?
Why do brokers do this? The reason is simple: commission. Brokers earn a commission, or ‘fee’, for what they sell. So they are incentivised to sell hard and earn more money. This can lead to aggressive sales, lack of transparency, misrepresentation of service and products and even lying about the supplier-broker relationship.
What you can do about it
Not all brokers are baddies. But some are. We would say a small percentage of them, but as always, it’s the small percentage who tarnish the industry and give everyone a bad name. It is rogue brokers who are the problem, not all brokers.
If you use a broker, only use a broker who is fully transparent about their ‘fee’ or commission and also about their relationship with the supplier they recommend. You need to know how much your broker is being paid and by whom to determine if they are credible at all. Transparency is key here.
A simpler way to get a great deal on your energy and negate the issue of broker misselling altogether is to use EnergyBillKIll.com to get the best prices.
With our app, we take the place of a traditional broker and do the leg work for you. We negotiate directly on your behalf with the big six and smaller specialist suppliers like Opus Energy to give you the chance to save thousands.
We don’t charge crazy broker fees (you will save over 50% on those) and we only need a little information from you to get the ball rolling. You don’t even have to sign up – we only need your postcode to provide detailed comparisons of suppliers in your area. Download for free today and start saving the smart way. You know it makes sense.