Wednesday 9 May 2012

Beware of tricky contracts, warns energy broker

Beware of tricky contracts, warns energy broker

Consumers need to protect themselves from risk when buying energy from brokers.

These were the words of M&C Energy Group’s CEO who claimed some of his competitors might charge for ‘hidden’ commissions.

Mark Dickinson said: “The energy budget is too important to leave to a third party with anything other than the best credentials and standards of independence and transparency.

“Without the appropriate checks it could lead to a potentially ruinous situation for some customers.”

Such bad practices include rumours of energy advisors diverting consumer attention from a sale to then take commission from the supplier.  The combined effect can lead to unauthorised high rewards for the advisor, M&C claims.

The topic of broker trust has been getting much attention recently, with many consumers worrying about getting caught out by energy buyers. A recent ELN survey revealed 55% of energy buyers believe brokers have a bad name.

M&C suggests buyers become more aware of potential restrictive practices and tie-ins. Some agreements allegedly prohibit the customer from contacting the supplier directly and it is not unusual for there to be long notice periods of up to two years.

Written by

Bruna Pinhoni

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