Business Energy Claims are delighted to have recovered substantial sums for Stranton Social Club from their energy broker, Utility Alliance, following a recent trial win.
The owners at Stranton Social Club were approached three years ago by Utility Alliance who offered to find them a gas contract.
Callum Thompson, director at Business Energy Claims, said: “When Stranton Social Club approached us to look into their energy contracts to see if they had been mis-sold to, we quickly identified that the contracts found were long-term in duration.”
Long-term contracts are more appealing for energy brokers to sell as they usually result in higher sums of commission, which is not apparent but is included within the client’s energy costs.
He added: “It was also found that 41 per cent of the club’s energy bills took the form of commissions, which were not disclosed at the point of sale, nor disclosed or documented on bills or on the contract.”
A hearing at Newcastle upon Tyne County Court resulted in the judge ruling in favour of Stranton Social Club. The judge made it clear that the broker was acting in the capacity as agent for the client, and in doing so had neglected their fiduciary duty to act in Stranton Social Club’s best interests.
Utility Alliance had a duty to account to the customer in full for the commissions earned and included in their gas supply contract. The client was awarded 100 per cent of their claim, with standard costs awarded and interest payable.
Callum concluded: “We are thrilled to announce this recent win at trial for our client Stranton Social Club. This adds to our many wins and successes for our clients and we were pleased to be able to recover several thousands of pounds for the social club, particularly during this difficult time for businesses across the country.
“This court decision further clearly confirms that energy brokers are acting as agents and in doing so, owe a duty to their clients to be transparent and act in their best interests.
“Our ambition is to legitimise the business energy market so that brokers are more transparent in selling energy contracts to consumers. This is a multi-billion-pound issue for UK businesses and we are pleased to be able to assist in recovering such substantial sums.
“We would welcome any business who has used an energy broker or consultant to contact us. If their fees were not disclosed to them, they may have a potential claim and could recover these sums. We look forward to helping many more businesses in the future.”