Wednesday 9 May 2012

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.