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Box Power CIC is proud to be spearheading a new campaign with eight major associations for Ofgem to finally take decisive action on hidden energy broker costs.
As a not-for-profit organisation that has donated over £800,000 to charity we are proud to be a different kind of energy broker – but sadly not all brokers have the same commitment to transparency and strong communities that we do. The high and hidden fees of some energy brokers bring us all into disrepute.
That’s why leading associations including:
These have joined with us to challenge the regulator Ofgem. We want Ofgem to finally take decisive action and remove energy broker ‘TPI’ exploitation by bringing pre-contract broker cost transparency paid by the businesses within their energy supply contracts for all of them, not just micro-businesses as is currently the case.
What’s the problem?
Our research has found some energy brokers are charging huge commission fees on contracts awarded to some organisations across a range of sectors, including those caring for vulnerable people.
In just one example a broker was easily able to add nearly £12,000 in commission onto a £49,000 gas contract for a single care home. This example shows how unscrupulous brokers are taking advantage of businesses that can ill-afford it, ultimately loading costs on to the customer who include some of the most vulnerable people in the UK.
The lack of pre-contract transparency means businesses, charities and others are losing out to the tune of thousands of pounds because they don’t really understand exactly what they are being charged.
Box Power and the eight other groups now want the energy regulator, Ofgem, to force brokers to be transparent in their fees so no business or charity is left out of pocket.
Nothing we’re advocating is particularly new; regulation already exists for microbusinesses.
Pull out box with picture of Corin: “For there to be trust, there must be transparency. They shouldn’t have to argue for support from the organisation created to protect all consumers. Rogue brokers are adding excessive commissions and all the while it is the end user who is paying for it.
“Transparency should be a given, so whatever the level of commission the business is fully aware and in agreement.
“Not only that but now businesses are incurring even higher energy prices, some brokers are adding even higher fees because they think they can get away with it.
“This is an extra burden on businesses at exactly the point they can least afford it. We refuse to stand by and allow this to continue and will do all we can to ensure this is brought to a stop.”
Corin Dalby
Chief Executive
Box Power CIC
To join our campaign or for more information please email [email protected]
