Have you ever been mis-sold an energy contract?
Updated: Sep 16, 2020
If terms like BSUoS, TNUoS, DUoS & KVA etc. confuse you, you are not alone. It confuses most ‘so called’ energy experts; including energy brokers, consultants as well as the customer service and sales teams from within the energy suppliers.
Recent changes to the market has caused all manner of confusion, nothing more so than P272. This affected all customers that were previously classed as having a Maximum Demand meter, with profile classes from 05 – 08.
These meters were upgraded to Half Hourly, or ‘00’, in order to maximise efficiencies in power distribution and more importantly the ability to effectively produce accurate bills for all involved (suppliers and consumers alike).
Electricity contracts have never been so complex in their structure. However, since P272, pass-through contracts have been used to confuse, bamboozle and mis-sell to business electricity customers across the UK.
With so many new business customers being exposed to new Half Hourly contracting methods, this complexity presents opportunity for unscrupulous companies or individuals acting as energy experts.
There has also been an influx of new suppliers into the marketplace, each bringing their own products and offering. Businesses are now in a difficult position of deciding what product, supplier, term, broker etc. they should opt for. Real expertise is needed.
At The Electric Board (TEB) we are increasingly dealing with new customers who have previously entered into new energy contracts which were wholly unsuited to them. They appear to have been given inaccurate supplier comparisons as well as being fed misleading information by their ‘advising’ party.
Dealing with such businesses and establishing a trust can be challenging but TEB prides itself on operating transparently and fairly. We offer a range of products and are open to our clients about each of these. Options include contracts with the price being absolute for the length of the agreed term (the old-fashioned way).
Alternatively we have contracts where you can ‘pick & choose’ what is included. In addition, our customers can choose fully ‘passed through’ options, where only the actual commodity of electricity is secure. This leaves all other pricing factors exposed to the constantly fluctuating market. It has been estimated that by 2020 up to 60% of the unit rate a business customer pays for electricity will be made up of the non-commodity charges.
Each variation of contract available has benefits but these need to be matched to the customer’s specific business needs. Brokers should act in the client’s best interest – but, sadly, that hasn’t always been the case
The need for an experienced consultant you can trust has never been so great. Here at TEB we pride ourselves on the service we provide and as we disclose 100% of our commissions you know the true value and cost of our support.