Energy firms face £2bn legal claim after allegations they paid brokers 'secret commissions'

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Energy firms face £2bn legal claim after allegations they paid brokers 'secret commissions'
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Energy companies are facing a £2bn legal claim from millions of businesses and community groups over allegations they paid “secret commissions” to energy brokers and passed on the cost to billpayers

are facing a £2bn legal claim from millions of businesses and community groups over allegations they paid “secret commissions” to energy brokers and passed on the cost to billpayers.

“They just hound you,” he said. They ring you asking when your energy contract is up, and sometimes you tell them. They may ring you 20 times. It’s not unusual to get five, six, eight calls a day. “Another £3,000 or £4,000 a month would not be sustainable. I’d have to look at getting rid of staff, closing the kitchen and doing more myself,” he said.

The law firm, which has already signed up several hundred claimants, estimates that that the average claim is currently around £20,000 per customer and that it is possible for long-term contracts for heavy energy users could claim over £1m. Research commissioned by Harcus Parker found that some energy suppliers allowed brokers to charge a commission of up to 10p per kWh, while others did not cap payments at all. The firm said it found that it was “commonplace” for these commissions to add between 1p and 3p per kWh to customers’ bills, which could total tens of thousands of pounds over the course of a typical contract.

Damon Parker, senior partner of Harcus Parker, said “every bill” paid by businesses could include an element of these “hidden commissions”.

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