Energy giants could pay billions in compensation as judges ‘open floodgates’ to claims

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1. Energy giants could be [forced to pay billions of pounds](https://inews.co.uk/news/energy-firms-threat-payouts-customers-ppi-2393605?ico=in-line_link) out to business customers after an Appeal Court decision “opened the floodgates” to claims on deals stretching back more than 20 years that may have been mis-sold.

   Legal experts believe the ruling could see the beginning of a number of claims even larger than those made following the [Payment Protection Insurance](https://inews.co.uk/news/energy-customers-payouts-billions-2962152?ico=in-line_link) (PPI) scandal, which saw more than £38bn paid out to customers mis-sold the product between 1990 to 2010.

   However, there are also warnings that huge payouts to businesses could be recouped by energy giants hiking prices for business and domestic customers.

   “The claims are in the billions. This ruling opens the flood gates to businesses who believe they have been mis-sold to,” Victoria Myers, director of specialist litigation firm Energy Solicitors, told *The i Paper*.

   “The energy broker market is worth about £2bn a year, and when you consider this mis-selling stretches back more than two decades the amount of the claims could well add up to more than those during the PPI scandal.”

   The broker fee claims could[ stretch back to 2000](https://inews.co.uk/news/energy-boss-broker-market-firms-billions-payouts-customers-2397076?ico=in-line_link), when Ofgem deregulated the brokerage market.

   Myers added: “With the unregulated energy broker market continuing to grow at pace, this ruling provides a vital safeguard for businesses seeking fair and honest energy deals.

   “Running a business is hard enough and energy prices are already high, so the last thing businesses need is to pay hidden and undisclosed commission for their energy, increasing these already high costs.

   “This ruling really paves the way for businesses who believe they have been mis-sold to, clarifying what can be a confusing market and making the process of recovering funds easier for businesses.”

   A spokeswoman for the Utilities Intermediaries Association (UIA), which represents broker and other third party intermediaries (TPIs) working in the energy sector, said: “Anyone in business understands, or should understand, that services come at a cost.

   “As long as all necessary information is provided to the customer, enabling them to ask the right questions, it is ultimately the responsibility of business customers to exercise due diligence. This is the commercial sector, not domestic retail.”

   The UIA spokeswoman added that if energy suppliers had to lose billions following business claims, corporate and domestic customers would end up bearing the cost of the payouts.

   “The one certainty in energy markets is that suppliers will pass any financial shortfalls onto all consumers, which will include domestic, prioritising shareholder interests above all else.”

2. Read the article, this is about commercial energy. Retail customers aren’t getting any money.

   We will be paying for it though, via higher prices.

3. Get ready for a massive, tax payer funded bailout

4. TL;DR Domestic consumers do not get to claim but may have to pay for the claims with higher bills.

   Companies may have used brokers to buy energy. With the brokers making undeclared commissions. So the companies may have been missold e.g. if a broker didn’t find them the best deal because an other deal paid higher commission. They may be able to make a claim to the energy companies going back to 2000. With the costs being passed on to everybody.

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