In an unregulated market where brokers often don't disclose commissions, or often disclose fake amounts of commission to make it seem they are making far less than the true amount earned, it is important that a disclosure of commission is sought from the energy supplier and not the broker.
Due to the nature of the agreement between the supplier and the energy broker it is common for suppliers to refuse to give a disclosure to customers directly. They will often recommend that you go back to your broker and request the information but we have seen many situations where the broker continues to either frustrate the request or lie about the amount earned.
It is for this reason that we recommend that any disclosures are requested from the suppliers by following the following method:
It is important to note that some brokers will refuse to sign the form as they will leave themselves wide open to claims once the truth is exposed. If your broker refuses to sign the form please contact our team so that we can assist you.
Please also note that at this point brokers may make offers of settlement at this point, please do not agree to anything without having an expert review the offer as we have seen many low offers made to clients at this stage.
It is also advised that in any future dealings that before contracting with any new brokers, you request that the form is completed prior to contracting and that you check the amount with the supplier.
The method to calculate commissions is as follows:
Commission amount X annual consumption X duration of contract / 100 = amount of commission.
(eg: 1.5p commission multiplied by 200,000 annual consumption multiplied by 5 years divided by 100 = £15,000 commission).
