Following a legal case, energy supplier ENGIE was held liable, resulting in a small business being compensated for “mis-sold” energy contracts.

An energy claims specialist has facilitated the recovery of thousands of pounds for a small amusement arcade business, following a legal case where ENGIE was held liable.

The business, operating as “Queenie’s Casino Slots,” received over £10,000 as a result of the court claim brought forth by Business Energy Claims (BEC).

BEC, based in North Tyneside, is urging businesses and other non-domestic energy users, including charities, sports and social clubs, and places of worship, to assess whether they might have been misled and mis-sold energy contracts.

A few months ago, Ofgem launched a consultation to enhance service standards for businesses and improve transparency regarding costs associated with third-party energy brokers.

Business groups had previously voiced concerns to Ofgem regarding the necessity for increased support in energy matters, prompting this decision after thorough engagement with stakeholders.

Callum Thompson, Managing Director at BEC, said: “This case has the real potential to open the floodgates to other businesses and organisations large and small which may have been misled and as a result mis-sold energy contracts.

“What we are looking at is a multi-billion pound issue which could affect thousands of businesses and other organisations who may or may not realise they could have a claim.

“We want to ensure these consumers understand that if they thought the commission in an energy contract was being paid by the supplier and didn’t impact on their costs, then they are sadly wrong.

“As businesses and others continue to struggle against a growing cost of doing business crisis, it has never been more important for consumers to be fully informed about energy contracts and to question anything which doesn’t sit right.”

Chris ShawChair of the Energy Consultants Association, told Energy Live News: “BEC and other claims farmers have been running the same hyper inflated fantasy land stories for months. An unreported County Court decision that isn’t legally binding hardly seems to be a “landmark case”.

“Reported” County Court decisions in the cases of Leicester Indoor Bowls and The Dark Blue Pig (also against ENGIE) were resounding victories for energy brokers and suppliers – with the claimant in one ending up with a costs bill of £20,000.

“Mr Thompson and his father who is also listed as a Director in Business Energy Claims were involved in Utilitywise.”

Subsequently, several years after they left, the company collapsed resulting in 600 people losing their jobs.

“BEC started in 2018 so it’s interesting that it seems to have taken them until 2024 for them to record a county court case win with so many millions of claims apparently circling round.

“Unsurprisingly the figures that they use are sensationalist – created purely to try and drive media coverage to ultimately a rather small issue.

“Cornwall Insight in their annual report confirms that the total commission earned by brokers for facilitating SME contracts was £270 million in 2023. The penetration rates of SME using brokers have been increasing year on year since 2000 so it is logical to assume that this number also drops significantly in prior years.

“This is in stark contrast to the figure of £2.25 billion plucked out of the air by Mr Thompson.

“This is complex issue and cases are very fact specific – with huge variations on how brokers disclose commissions. Cases will undoubtedly need to go through the higher courts over the coming years to get final clarity – but I expect that will take years and years to gain final clarification sadly.”

Energy Live News has approached ENGIE and Ofgem for comment.

New trade association, the Energy Consultants Association, is advocating for better representation of energy brokers and consultants.

A newly formed trade association, the Energy Consultants Association (ECA), is pushing for equitable representation for energy brokers and consultants, aiming to provide support to UK businesses seeking to lower energy costs while ensuring fair treatment from providers.

This comes as industry proposals for increased regulation and concerns over energy claims gain momentum.

The Retail Energy Code Company has proposed mandatory adoption of the TPI Code of Practice for all brokers and consultants, initially introduced on a voluntary basis in October 2023.

Since its establishment in 2022, the ECA has seen significant membership growth, positioning itself to advocate for its members and influence regulatory bodies and suppliers.

Chris Shaw, Chair of the Energy Consultants Association said: “As a key stakeholder in the market, it is important that energy brokers and consultants are listened to in helping shape the proposed regulation so that the costs don’t outweigh the benefits.

“Whilst we have provided significant input to the requests for feedback, there are still many parts of the code that we feel need revising before it is made mandatory.

“We will continue to represent the best interests of our members to try and get to a better place for all involved.”

Image: STUDIOMAX / Shutterstock

The Energy Bill Discount Scheme, implemented to aid businesses during the energy crisis, is slated to terminate on 31st March.

As the Energy Bill Discount Scheme (EBDS) nears its expiration date, businesses across Britain and Northern Ireland are advised to brace for the conclusion of this support initiative designed to alleviate the strain of soaring energy bills.

Set to end on 31st March, the scheme was established to mitigate the financial burden on businesses during the energy crisis.

Despite the imminent conclusion of the EBDS, organisations are reminded to continue paying energy bills as usual until the discount is applied.

Moreover, they are advised to explore competitive energy deals offered by different suppliers, as the actual energy costs may vary across providers.

A survey by Ofgem reveals that nearly 58% expressed concern regarding the impact of energy prices on their business, with 42% indicating they were very concerned.

A joint study by Ofgem and the Department for Energy Security and Net Zero has shed light on businesses‘ experiences in the energy market, indicating widespread concerns over energy prices.

According to the research conducted by IFF Research, 58% of businesses expressed worry about the impact of energy prices on their operations, with 42% reporting significant concern.

Despite this, 60% of businesses expressed satisfaction with the overall service provided by their energy supplier, although 13% expressed dissatisfaction.

Common grievances included high costs, poor customer service and inadequate communication.

Additionally, while 55% found it easy to contact their energy supplier, 18% found it difficult.

Around 12% of businesses reported making a complaint to their supplier within the last six months, citing issues such as billing inaccuracies and unexpected charges.

The study, based on a telephone survey of 1,000 businesses across Great Britain in July 2023 followed by 30 qualitative interviews, focused solely on non-domestic premises with non-domestic energy contracts.

Image: Dani Ber / Shutterstock

Industry leaders stress the importance of considering local needs and swiftly implementing infrastructure to support the integration of renewable energy sources.

The energy industry has reacted positively to the National Grid Electricity System Operator‘s (ESO) release of the “Beyond 2030” plan.

This plan aims to move Britain towards a net zero energy system.

Industry leaders have praised the plan for its ambition and necessary level of investment – they highlight its potential to drive economic growth, job creation and the adoption of cost-efficient energy technologies.

Additionally, they emphasise the importance of considering local needs and promptly implementing infrastructure to support the integration of renewable energy sources.

Emma Pinchbeck, Chief Executive of Energy UK, said: “Everyone in energy is working at an accelerated pace to ensure the lowest cost electricity generation is connected to new and existing types of demand across the country, and that this is done in the fairest way possible to all customers.

“It is critical that the plan considers local needs, and that industry and government minimise the amount and impact of energy infrastructure, but we also know that the future energy system will vastly improve the way we power our homes and businesses in this country.

“This plan is part of a wider programme of work from government, industry, the regulator, and the ESO to make sure that the needs of the country, the needs of communities, and the needs of customers are considered together, and fairly – for example, the government will need to streamline the planning process and begin engaging with communities.”

Nick Winser, Commissioner at the National Infrastructure Commission, said: “It’s critical that this investment is delivered quickly.

“This will require coordinated action from transmission owners, government and Ofgem, including ensuring that the planning system is not a blocker to delivery. The communities hosting this infrastructure must also see direct benefits from its deployment.”

Commenting on National Grid ESO’s “Beyond 2030” report, which outlines a £58 billion investment plan in Britain’s energy system, RenewableUK’s Director of Future Electricity Systems Barnaby Wharton said: “Reinforcing and expanding our electricity grid is long overdue.

“It’s essential that we don’t delay any longer and get on with the job, to ensure that we can get the vast quantities of clean power which we’re generating from offshore wind to British homes and businesses as efficiently as possible.

“This investment in new networks is absolutely vital, to slash bills, make our economy more competitive and boost Britain’s energy security.”

Image: Rob Atherton/ Shutterstock

In 2023, Britain achieved its cleanest year for electricity production with a 22% decrease in emissions compared to 2022.

Electricity production in Britain hit a milestone in 2023, marking its cleanest year to date.

According to the latest Electric Insights report, emissions from the power sector dropped by 22% compared to the previous year, primarily due to reduced reliance on fossil fuels, which accounted for only 33% of electricity demand.

Gas power generation fell by a fifth, partly due to decreased demand and a shift in import strategy.

Coal output reached a record low of 1% of Britain’s electricity generation, leading to the imminent closure of the country’s last coal power station in October.

France’s nuclear fleet outages influenced the change in import-export dynamics, while Britain’s own nuclear output dropped by 14%.

A survey of 503 UK businesses shows that 62% are unaware of government energy efficiency supports, with 47% deterred by cost concerns from investing in green upgrades.

A recent survey conducted by IPSOS has revealed insights into the attitudes of 503 UK businesses towards sustainability and energy efficiency.

The findings indicate that while over one-third of businesses prioritise these aspects in their budgets, others are deterred by concerns over costs and lack of information.

The survey highlights that almost 62% of businesses are unaware of government support for energy efficiency upgrades.

Despite this, nearly 41% of businesses believe retrofitting buildings can be beneficial.

Additionally, approximately 48% consider sustainability important to their customers, with larger businesses showing a higher level of interest.

Cost concerns emerged as a significant barrier, with 47% of businesses indicating that they are deterred from investing in green upgrades due to financial constraints.

Despite this, workplace recycling and reducing consumption are among the most common sustainability practices adopted by businesses.

Nikki Flanders, Managing Director of SSE Energy Customer Solutions, GB and Ireland, said: “It’s clear that industry and government need to do more to enable businesses to engage in net zero.

“There are over five million micro-businesses in the UK employing less than ten workers; decarbonising the UK economy requires more than a one-size-fits-all approach and must recognise what different business cohorts need to make progress.

“Cost is an understandable concern for small business owners but a good starting point is to reduce energy consumption and emissions, often requiring simple and minimal changes, starting with information about energy consumption.

Smart meters are excellent tools for helping businesses to understand their consumption and where efficiencies might be found. We need to do more to spread that message and information through the business community and challenge any misconceptions that every action to reduce emissions is costly.”

The Consumer Council has encouraged consumers to consider switching energy suppliers following price decreases announced by Power NI and SSE Airtricity gas.

The Consumer Council is encouraging Northern Ireland consumers to explore energy supplier switching options as two major providers, Power NI and SSE Airtricity gas, announce price decreases.

SSE Airtricity gas has revealed a 22.8% reduction in their regulated gas tariffs for domestic and small business customers in both the Greater Belfast and West gas network areas.

This move is expected to result in significant savings, with typical annual gas bills for credit meter users in these areas dropping by about £320, and prepayment gas meter customers seeing reductions of around £316.

Power NI, Northern Ireland’s largest electricity supplier, is implementing a 6.3% decrease in its tariffs, following a series of three tariff reductions in 2023.

Nearly 500,000 households are set to benefit from these reductions, with typical annual electricity bills for credit meter users decreasing by approximately £64 and prepayment customers saving around £62 annually.

Both tariff reductions are scheduled to take effect from 1st April.

The Energy Ombudsman has reported on the first year of the energy broker dispute resolution scheme, with 741 disputes accepted, 69% upheld in favour of consumers.

The Energy Ombudsman, under the Trust Alliance Group, has published its inaugural assessment of the energy broker dispute resolution scheme, following its launch in December 2022.

During its first year, 1,890 brokers joined the scheme, with 741 disputes accepted, predominantly related to sales and customer service.

The scheme aims to address a protection gap for microbusinesses, providing an independent avenue for dispute resolution and potentially saving consumers time and money compared to legal recourse.

Ed Dodman, Director and Chief Ombudsman for Energy Ombudsman said: “While dispute volumes were low in the early months, we’ve seen a gradual increase over the year.

“We’ll continue to work with brokers and the industry to ensure that consumers are aware that they can use this scheme in the event of a dispute arising and that dispute remedies will be implemented on time.”

Almost 43% of UK business transformation projects are currently driven by net zero objectives, according to a new report.

A recent survey found that over a quarter (28%) of UK CEOs perceive their businesses to be moderately or extremely exposed to the threat of climate change over the next 12 months.

PwC’s annual UK CEO Survey indicates a notable emphasis on net zero projects among UK business leaders.

According to the survey, conducted as part of PwC’s ongoing research into corporate attitudes towards sustainability and climate change, a substantial portion of UK CEOs are prioritising initiatives aimed at achieving net zero emissions within their organisations.

Key findings from the survey show that 43% of UK business transformation projects are currently driven by net zero objectives.

Additionally, a quarter of CEOs anticipate that climate change will significantly impact their value creation, delivery and capture strategies within the next three years.

Despite the momentum towards net zero, the survey also reveals that a notable proportion of UK CEOs, around 26%, currently have no plans for net zero transformation within their organisations.

Almost 37% of respondents cite regulatory complexity as a factor impeding their company’s decarbonisation efforts.