Rip Off Britain: Have you been ripped off? 🔍
Rip Off Britain Series 12: Episode 8 aired on the 12th of May.
In the episode, the team explore energy brokers and extremely high hidden commission costs and hard LOA's.
The investigation found that many brokers in the U.K had been taking advantage of clients by not disclosing the commissions added into the unit price when quoting small businesses.
Many brokers and energy consultants often tell the client things like "we get paid from the supplier" and "you don't pay us anything".
This of course isn't the case and businesses have been stung by unscrupulous and dishonest companies.
These brokers and consultants often push through contracts with hidden costs which often make a lot of money for the brokers, but leave the business with higher costs.
Have you taken a contract with a broker where you weren't aware of the costs included?
At the Electric Board, we pride ourselves on our transparency promise.
When we procure pricing from energy suppliers, we present those prices to our clients clearly showing the uplift we have included for our service.
This allows our clients to make the most informed decision and they can be safe in the knowledge that we have the needs of their business at the forefront.
Letter of Authority (LOA)
As well as hidden fees, the programme touched on the use of Letter of Authorities (LOA) - Many brokers have clients sign what we call "Hard LOA" or "Level 2 LOA" which often allows brokerages to make important decisions on behalf of the client.
Some brokerages use these hard LOA's to enter into or change contracts on behalf of the client.
When procuring pricing and managing our client accounts, we only require "Soft LOA" or "Level 1". This means that we can only gather information and discuss accounts with suppliers but all decisions are ultimately made by our clients.
Another tactic some brokers use is the "verbal agreement".
This normally involves a broker trying to gain agreement via telephone using high pressure sales techniques, which often can leave a client confused, stressed and unsure of what they are actually agreeing to.
Our team pride ourselves on our consultative approach, we provide options and easily digestible information which allows our clients to feel comfortable when going over our quote form in their own time.
Our 5* TrustPilot is packed with incredible client feedback which highlights the brilliant job our team does daily.
Thanks for reading!
The Electric Board comprises of a team of industry expert energy procurement and business utility specialists'.
Our main focus is to evaluate all aspects of energy consumption for our clients. Often within a wide range of organisations, spanning all major industries including corporate, multi-site, SME, sole traders and charities.
We will take a more detailed look at the consumption habits and needs, procure the best energy deal on the market for your business, and provide case studies and easy to implement tips to help you improve your carbon footprint.
Our key differentiator is that unlike other energy consultants, energy comparison sites, and brokerages, we operate transparently in regards to our commissions. We believe a relationship based on trust and mutual affinity can produce the best results.
Call us today on 0191 466 1213 for a no-obligation chat with one of our team.