A landmark court ruling for one small business over hidden fees in its energy bill could 'open the floodgates' for thousands of claims
In October 2022, Ofgem started to close this loophole making it a requirement for brokers to declare their commissions to clients inHowever, Business Energy Claims which brought the case on behalf of Queenie’s Casino Slots, said any subsequent claims from businesses could stretch back to the year 2000.“Many other businesses may have fallen foul to this type of practice costing them thousands of pounds in the process – money they can’t afford.
The court found a conflict of interest between the broker and client, and that the broker had determined the size of the commission which ultimately went against the client’s best interests, while also determining the length of contract.The court ruling could mean hundred of thousands of similar businesses who entered into these energy deals could now seek compensation over hidden broker fees in their bills.
Ofgem has found that between two and three million businesses use a broker to help choose their tariff.
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