Calculating the amount for a business energy mis-selling claim can be a complex process and may vary depending on the specific circumstances of the case. Several factors come into play when determining the claim amount. While it is advisable to consult with legal professionals or consumer rights experts for accurate assessment, the following considerations are typically taken into account:
Overcharged Costs:
One of the primary components of a mis-selling claim is identifying the overcharged costs resulting from the mis-sold energy contract. This involves comparing the actual costs incurred under the mis-sold contract with the costs that would have been incurred under a fair and transparent contract. The difference between the two amounts represents the overcharged costs that can be claimed.
Hidden Fees and Additional Charges:
Mis-selling often involves undisclosed or hidden fees and additional charges. These can include hidden administration fees, exit fees, or non-compliance penalties that were not properly disclosed at the time of signing the contract. The claim amount may include these undisclosed costs as part of the overall compensation.
Losses or Damages Incurred:
In some cases, businesses may have suffered losses or damages due to the mis-selling of energy contracts. For example, if a business was unable to switch suppliers or renegotiate terms, resulting in higher energy costs or missed savings opportunities, these losses may be factored into the claim amount.
Financial Consequences: Businesses may have experienced financial consequences as a direct result of mis-selling, such as cash flow issues, increased operating expenses, or difficulty meeting financial obligations. These financial impacts can be considered when calculating the claim amount, taking into account the extent to which the mis-selling contributed to these adverse consequences.
Professional Fees and Legal Costs:
If businesses have sought professional advice or legal representation to pursue the mis-selling claim, the associated fees and costs may be included in the overall claim amount. This can cover expenses related to engaging experts, gathering evidence, and legal proceedings.
It is important to note that each mis-selling claim is unique, and the calculation of the claim amount will depend on the specific details and evidence presented.
Mis-selling often includes excessive uplift rates and undisclosed fees buried within the intricacies of energy contracts. Business Energy Claim is here to assist in recouping these losses. Below we provide an example to help contextualise the amount of commission that businesses may unknowingly have been paying, shedding light on the calculation of compensation.
One aspect of business energy mis-selling involves excessive uplift rates imposed by brokers. These additional charges, often hidden within the contract’s jargon and numbers, can result in significantly higher energy costs for businesses. Furthermore, undisclosed fees further contribute to the financial burden imposed on businesses. Identifying and quantifying these undisclosed fees is crucial to calculating the compensation amount accurately.
To provide an illustrative example, let’s consider a hypothetical case:
- Term: 36 Months
- Uplift by the Broker: 2 p/kWh
- Annual Consumption: 502,320 kWh
- Brokers Commission: £30,139.2
In this scenario, the uplift rate imposed by the broker is 2 pence per kilowatt-hour (p/kWh). For an annual consumption of 502,320 kWh, the excess amount charged due to the uplift would be £10,046.40 (502,320 kWh * 2p/kWh). Overall, the undisclosed broker’s commission amounts to £30,139.2 for the duration of the contract. Therefore, the compensation amount in this example may include the £30,139.2.
Business Energy Claim specialises in assisting businesses with recouping losses resulting from energy mis-selling. Our expertise lies in navigating the complexities of energy contracts, identifying hidden fees, and calculating the compensation owed to businesses. By engaging our services, businesses can benefit from professional support and guidance throughout the claims process, ensuring a thorough and accurate assessment of their losses.
Business energy mis-selling often involves excessive uplift rates and undisclosed fees, which can significantly impact businesses’ energy costs. Calculating the compensation amount requires careful analysis of the specific details of the mis-sold contract. Business Energy Claim is dedicated to helping businesses recoup their losses by identifying hidden fees, quantifying excess charges, and navigating the claims process. With our expertise, businesses can seek fair compensation and regain financial control in the aftermath of energy mis-selling incidents.