As many British businesses battle to stay afloat amid crippling energy prices, a Manchester law firm is leading the fight against unscrupulous suppliers who’ve overcharged struggling companies via secret commissions.
Barings Law is representing hundreds of UK businesses, who could have been mis-sold their energy contracts – inflated by brokers and hoping to bag bonuses for themselves in the form of undisclosed commissions paid by the suppliers.
When commission is added to a quoted rate of energy, it must legally be disclosed.
With more than 2,000 intermediaries, most of which are unregulated, selling energy solutions to businesses daily, a huge number of firms could be entitled to compensation because of brokers failing to provide a clear enough break-down of commission.
According to Ofgem, microbusinesses accounted for £3.4bn of UK energy expenditure in 2020 and 67% of UK-based, small businesses have used a broker to take the hassle out of searching themselves.
With inflation leaping to a 40-year high and the Government set to scale back their energy support measures for non-domestic consumers from April, Barings Law believes that businesses shouldn’t be forgotten and left behind, especially when they’re being taken advantage of.
Adnan Malik, Lead Solicitor for Business Energy at Barings Law, says the firm is currently representing hundreds of companies estimated to have been overcharged thousands.
He commented: “With many businesses only just beginning to find their footing following the pandemic, they have been hit yet again with rising energy bills.
“The absolute last thing they need, is to be overcharged by unscrupulous energy brokers and potentially put their livelihoods at risk.
“There is a danger that businesses are being overlooked in the energy crisis, but the prospect of rising bills is very real for them also.
“At Barings Law we’re seeking to gain redress for companies who’ve been mis-sold their energy contracts by a broker, which is a problem that has been compounded due to the general cost of energy in the last few months.”
Business data reporting site, Statista, estimates that in 2021, the selling value of electricity totalled £43.8bn while the selling value of gas amounted to £25.9bn.
Meanwhile, the Government Insolvency Service reported a 40% hike in company insolvencies at 5,595 in Q3 2022 as compared to the same quarter in the previous year.
As Britain faces winter challenges and soaring heating costs, mis-sold energy products could tip more smaller firms, already struggling to balance their books, over the edge.
Barings Law, who specialise in representing victims of mis-selling, are now encouraging businesses who think they’ve been mis-sold energy, to get in touch.
“If you’re a business owner and have used an intermediary for your energy in the last 6 years, we want to hear from you,” Adnan adds.
“We will do everything in our power to fight for justice on your behalf with a view to win back what is rightfully yours.”
If companies feel they have a case for mis-sold energy, they can contact 0161 200 9960 or visit baringslaw.com for further details.
