Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Legal action launched against ‘rip-off’ hidden commissions on UK firms’ energy bills

by February 5, 2024
February 5, 2024
Legal action launched against ‘rip-off’ hidden commissions on UK firms’ energy bills

UK businesses are grappling with an additional 10% average cost for gas and electricity, as revealed by a prominent litigation law firm in a new report.

The firm, Harcus Parker, is leading a collective legal action involving thousands of small enterprises seeking to recover up to £2 billion in undisclosed broker fees added to their energy bills.

The undisclosed commissions, sometimes reaching 60% of energy costs, are exacerbating the challenges faced by small businesses dealing with surging energy prices, a situation further intensified by Russia’s reduction of gas supplies to Europe following the Ukraine invasion.

Harcus Parker alleges that over a million small businesses may have paid inflated prices over the past decade due to suppliers incorporating “secret” fees or commissions from energy brokers into their bills. These fees are often not disclosed on customer bills, making it challenging for businesses to identify or contest the additional charges.

Damon Parker, a partner at Harcus Parker, expressed astonishment at the significant impact these undisclosed commissions have had on customer bills, emphasizing the need for transparency. The typical broker commission, approximately 1.7p per unit of energy, adds an estimated 10% to the total energy bill for small businesses availing broker services.

The law firm is urging the energy regulator to enforce transparency on fees passed on to customers by suppliers. While regulations introduced since October 2022 mandate disclosure of charges to “microbusiness” customers, slightly larger small businesses lack the same protections.

Harcus Parker’s call for transparency aligns with Ofgem’s recent actions. The energy regulator has sought government intervention to regulate energy brokers, recognizing concerns about unregulated third-party brokers taking advantage of small business owners. Ofgem has also closed a consultation on plans to compel major energy companies to disclose rates covering broker fees.

The Federation of Small Businesses has supported these efforts, asserting that brokers have imposed hidden commission fees running into billions on bills for companies, charities, care homes, and faith groups. Additionally, concerns have been raised about brokers locking businesses into long-term energy deals at peak global market prices.

While welcoming Ofgem’s recent moves, Harcus Parker emphasizes the necessity of further transparency, suggesting a lump sum disclosure of brokers’ commissions to enhance understanding and protect companies from potential financial exploitation.

Read more:
Legal action launched against ‘rip-off’ hidden commissions on UK firms’ energy bills

0
FacebookTwitterGoogle +Pinterest
previous post
Labour considers watering down plans for private equity tax raid
next post
UK reaches key milestone with one million electric cars sold since 2002

You may also like

BYD overtakes Tesla as world’s top electric vehicle...

January 2, 2024

Wheels in Motion: How Darren Janesky Brings Joy,...

May 7, 2025

Tech chiefs debate cyber threat in Parliament

June 13, 2023

Consumer confidence edges up in March but recovery...

March 24, 2025

BMW sets aside £70m for potential motor finance...

November 12, 2024

Why live marketing is more important than ever...

January 27, 2023

5 Ways To Keep From Losing Your Computer...

August 8, 2022

Top Tools Every Small Business Should Invest In...

November 27, 2024

The Importance and Applications of Buggy Whips

March 26, 2024

Silent Discrimination in the Construction Industry

October 5, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,567)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved