Energy troubles: rising energy prices and hidden commission scandals are turning up the heat for hospitality businesses…
Experts are predicting another tough winter for hospitality venues, with concerns surrounding COVID-19 once again making the headlines. Venues across the country are understandably concerned about getting the numbers they need to assure viability, after what has been 18 months of struggle, uncertainty and forced closures. As more people are encouraged to stay home to minimise the risk of spreading the virus, it’s looking like a difficult few months ahead.
And COVID-19 isn’t the only crisis still impacting the nation. The energy crisis has been affecting individuals and businesses alike for months, with no sign of resolution anytime soon. This had led to prices rising by as much as 48%, according to one council in the North East of England. As a result, many venues are finding their budgets stretched to breaking point.
Hidden business energy commission is catching venues off-guard
Rising prices alone should be more than enough for hospitality businesses to contend with this winter, but sadly many brokers are taking advantage of the energy chaos to sneak hidden business energy commission into their contracts. Mis-sold energy contracts are being presented to venues by brokers as being the best offer available, while also including extra costs that payees should not have to budget.
This stems from the fact that business energy contracts aren’t as tightly regulated as domestic ones, giving brokers free rein to receive excessive fees from suppliers. As a result, many brokers have been found to recommend deals based on their commissions rather than the competitiveness of the contract. The details of these commissions often remain undisclosed within the contract, hidden amongst the energy costs themselves.
In short, organisations across the UK have been paying too much for their energy, all in the name of lining energy brokers’ back pockets.
Claims management specialists Winn Solicitors have their own experience in mis-sold energy contracts, having uncovered hidden commission in their own energy agreement. CEO of Winn Group, Jeff Winn, explains how this experience has cemented their commitment to helping organisations across other sectors 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.”
As a result of their own experience, the team at Winn Solicitors are now providing support for others who have been mis-sold energy contracts on a no-win, no-fee basis. The business sees this as a way of enabling hospitality businesses and those in other sectors to pursue compensation without risk at a time when UK organisations are already being forced to spend £25 billion a year on their energy, according to energy regulator Ofgem.
Winns Solicitors believe that, based on the cases they have already handled, it is possible for businesses to recoup between 10% and 20% of their annual bill from mis-sold contracts. They are also on hand to help venues break their mis-sold contracts and move onto 100% green energy contracts which are both ethical and transparent.
Solve your energy troubles
Ready to find out whether your business has been victim to hidden business energy commission? Find out more about how Winn Solicitors can help here.