A landmark legal case over hidden fees in energy bills could 'open the floodgates' to more businesses taking action against their energy providercould be forced to pay out billions to customers after a small business won a landmark legal case over hidden fees in bills.
Legal and energy experts say the ruling at the county court in Leeds could be the start of a scandal potentially bigger than the mis-selling of PPI from 1990 to 2010.Andrew Smith, the owner of Queenie’s Casino Slots, welcomed the ruling. “We are pleased to have won damages against the supplier. It may not seem like a huge amount but for a small business like ours it makes a big difference.”: “Like many others, we are trying to operate in challenging economic circumstances.
Victoria Myers, a lawyer at Energy Solicitors, said the court ruling against Engie could spark hundreds of thousands of claims from businesses against their energy providers. Callum Thompson, the managing director at BEC, said: “This case has the real potential to open the floodgates to other businesses and organisations, large and small, which may have been misled and as a result mis-sold energy contracts.
Last December, Ofgem set out its proposals to expand protections for businesses, which will bring in a new set of rules for suppliers to make sure they improve customer service and clearly set out costs for customers, including the amount paid for third party services, like energy brokers. If every company hit by hidden broker fees made a successful claim, BEC believes the total paid out could dwarf the £38.4bn paid to PPI claimants since 2011.
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