With the uncertainty of COVID-19 still affecting organisations across the industry, energy concerns are adding undue pressure to countless construction companies
Amidst the uncertainty and confusion surrounding the COVID-19 pandemic, construction companies are now facing another challenge to business as usual in the form of surging energy bills. Wholesale energy prices have risen dramatically in recent months, causing chaos for both domestic and commercial customers. But while COVID-19 and rising energy prices is more than enough for firms to deal with, hidden business energy commission is flying under the radar.
This worrying phenomenon is forcing firms to pay more than they should be for their utilities, at a time when purse strings are tighter than ever before.
Hidden fees topping up eye-watering prices
Mis-sold energy contracts are impacting businesses across all industries, including the construction sector. Unethical energy brokers are hiding commission costs in their recommended contracts so that customers will pay more than they should for their utilities.
How is this possible? Sadly, commercial energy contracts aren’t as tightly regulated as their domestic counterparts. This means that brokers aren’t required to be transparent about breaking down the costs involved in their contracts. Business energy commission is often left undisclosed by brokers so that construction firms don’t even realise they are being forced to pay extra costs that aren’t linked to wholesale fuel prices.
Among the many organisations that have fallen victim to mis-sold energy contracts is claims management specialists, Winn Solicitors. The legal experts discovered inflated commissions within their own energy agreements and, according to CEO of Winn Group, Jeff Winn, the experience has led the company to work with other organisations looking to recoup their losses.
Winn says: “Like many businesses we believed that the energy brokers we worked with had our best interests in mind when negotiating contracts on our behalf. We believed we were being sold the most competitive contracts.
“However, the truth is that hidden within our contracts were inflated commissions and pricing that was not genuinely based on the wholesale rate of gas and electric.”
Winn continues: “As a result of our experience we are now committed to raising awareness and helping businesses understand that, if they have been mis-sold an energy contract, we can help them to recover compensation after being mis-sold a business energy contract.”
There is support available for construction companies
In order to make it financially viable for construction businesses to challenge the deals provided by their energy brokers, Winn Solicitors has pledged to work with firms on a no win, no fee basis. Not only does this give businesses peace of mind with regards to potential legal costs; it also means construction companies can now seek to reclaim their losses with minimal disruption. This welcome invitation comes at a time when businesses, charities and public bodies are collectively spending £25 billion a year on their energy, according to energy regulator Ofgem.
Winns’ own mis-sold energy contract claim is set to be in the region of 20% of their total energy costs – a substantial reimbursement at a time when money is tight. The claims management specialists have pledged to help impacted organisations achieve between 10% and 20% of their annual energy spending, depending on the circumstances.
Do you believe your organisation may have fallen victim to hidden business energy commission? Get clarification by reaching out to the team at Winn Solicitors here.