Litigation specialist RGL Management has become the latest law firm to launch a group claim against big energy suppliers for inflating bills by paying secret commissions to brokers.
The claim, expected to exceed £500 million in value, is being made on behalf of thousands of small firms and organisations such as charities.
RGL says the average claim will be in the region of £60,000. It is confident it can reclaim the cost of the commission paid to brokers by energy companies and then recovered by a levy (a higher unit price) on customers’ bills. Customers were unaware of the practice.
Fast forward: In 2019, a report by energy regulator Ofgem into the ‘micro business’ energy market referred to ‘sharp practices by some brokers’ and ‘gaps’ in the redress available
Legal experts believe such commissions were a form of bribe and undermined the integrity of brokers, who were under a duty to provide businesses with impartial recommendations. All business energy suppliers paid commissions – including British Gas and Scottish Power.
In 2019, a report by energy regulator Ofgem into the ‘micro business’ energy market referred to ‘sharp practices by some brokers’ and ‘gaps’ in the redress available. RGL chief executive James Hayward said: ‘For many years, energy companies acted with impunity to obscure hidden payments to brokers, artificially inflating costs for UK businesses.
‘Now that this unlawful practice has been exposed, RGL is launching this claim to recover appropriate redress for all affected businesses.’
Firms that signed up to gas and electricity contracts through a broker from 2012 onwards could be eligible to join the claim. Rival lawyers Harcus Parker and Leigh Day have launched similar claims.
Claims can be registered at: energylitigation.com (Harcus Parker); leighday.co.uk/our-services/group-claims/energy-broker-commission-claim (Leigh Day); and belit.co.uk (RGL).
