Business disputes network charges following energy broker sale

Business disputes network charges following energy broker sale

A microbusiness agreed a four-year energy contract through an energy broker after being told that network charges were included within the quoted unit rate.

When billing began, the business found that the network charges were being applied in addition to the quoted unit rate.

The dispute

The quotation and contract documents included details of the network charges. However, the business said it relied on the information provided by the broker during the sales process when deciding to enter into the four-year contract.

Broker’s response

The broker confirmed that its agent had provided incorrect information and contacted the energy supplier to see whether the contract could be cancelled or the rates amended.

The supplier maintained that it had accepted the signed contract in good faith and that the agreement was binding and could not be cancelled.

Decision

Our investigation found that the business had been explicitly told that it would not need to pay the separate network charges and had entered into the contract based on that information.

As the business had not been provided with the correct information during the sale, the business was not given the opportunity to make an informed decision about whether to proceed with the contract.

As a result, the business was paying higher prices than it had been led to believe. We considered that, had it been provided with accurate information during the sale, it may have been able to source a cheaper contract with another supplier. We therefore required the broker to credit the business with an amount that offset the difference between the prices it had been told it would pay and the correct prices that should have been communicated during the sale.

Energy Ombudsman comment

This case highlights the importance of brokers providing accurate information during the sales process. Where incorrect information causes a business to suffer a financial loss, the broker may be required to put that right.

If you experience a problem with your energy broker, you should:

•    Contact your broker as soon as possible.
•    Allow them time to resolve the issue and keep records of your communications.
•    If the issue remains unresolved after eight weeks, or you receive a deadlock letter, bring your complaint to Energy Ombudsman free of charge.

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