By: Andrew McGivern
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Business Energy Hidden Commissions
Ofgem, the UK’s energy regulator, has recently published its strategic review on undisclosed commissions in the energy retail market. This review aims to tackle the issue of energy suppliers hiding commission payments from brokers and third-party intermediaries.
The review was prompted by concerns that some energy suppliers were using undisclosed commissions to incentivize brokers and intermediaries to promote their products over others. This practice is thought to be detrimental to competition in the energy retail market, as it can lead to higher prices and reduced choice for consumers.
The review found that there is a lack of transparency in the energy retail market, with many consumers unaware of the role that brokers and intermediaries play in the energy purchasing process. It also found that some energy suppliers are still using undisclosed commissions, despite previous regulatory action to address the issue.
As a result of the review, Ofgem has proposed a number of measures to increase transparency in the energy retail market and to ensure that consumers are protected from the negative effects of undisclosed commissions.
One of the main proposals is to introduce new rules that would require energy suppliers to disclose the commission payments that they make to brokers and intermediaries. This would allow consumers to make more informed decisions when choosing an energy supplier, as they would have a better understanding of the incentives that may be influencing the advice that they receive from brokers and intermediaries.
A further proposal is introducing new requirements for energy suppliers to ensure that they are treating customers fairly. This would include measures such as requiring energy suppliers to provide clear and accurate information about their products and services, and to ensure that they are not misleading customers in any way.
Ofgem has also proposed increasing the penalties for energy suppliers that breach the rules on undisclosed commissions. This would send a clear message to energy suppliers that this practice will not be tolerated and would help to deter them from using undisclosed commissions in the future.
The proposed measures have been welcomed by consumer groups and industry participants, who have long called for greater transparency in the energy retail market. They believe that the measures will help to increase competition, reduce prices, and improve the overall customer experience.
However, these measures do not assist those previously affected by the practice. McDermott Smith Law are therefore investigating and pursuing any historic and current energy contracts on behalf of businesses across the country in order to recover compensation for those affected.
We hope that the proposed measures will help to ensure that consumers are protected from the negative effects of undisclosed commissions and will give them more information to make informed decisions when choosing an energy supplier. However, if you believe your business may have been overcharged on their energy contract due to hidden commissions paid to the energy broker you used, get in touch today.
McDermott Smith Law will pursue your claim on a no win, no fee basis and guide you every step of the way. Contact us on 0151 363 6799 or by email at firstname.lastname@example.org