Survey of small businesses has uncovered a range of concerning practices encountered when dealing with energy brokers
November 2023 - Utilities
Survey of small businesses has uncovered a range of concerning practices encountered when dealing with energy brokers: A survey of small businesses in the UK has uncovered a number of unwanted practices amongst energy brokers including cold calling, impersonation of energy suppliers, concealment of commissions and pressuring businesses into unfavorable energy contracts.
The research by Octopus Energy polled 1,000 small businesses with fewer than 50 employees in the UK in June 2023. It found that 59% had experienced unfavorable interactions with brokers in the past year, which Octopus Energy estimates equates to around 3.2 million businesses affected.
Almost two in five respondents polled (38%) reported unwanted contact through persistent cold calls and spam emails, while 36% revealed that their interactions with energy brokers had caused them stress, and nearly 24% felt pressured to change their energy supplier due to these interactions.
Notably, a fifth of respondents encountered brokers who deceitfully posed as energy suppliers. The survey indicates that more than three-quarters 78% of small businesses (78%) are calling for brokers to transparently disclose their commissions at the point of sale. Additionally, 70% of respondents are advocating for a cap on broker commissions, underscoring the urgent need for stricter regulations.
Zoisa North-Bond, CEO of Octopus Energy for Business, said:
"The business energy market has become the wild west, and bad broker behavior is running rampant. It's fundamental we raise awareness of these damaging practices - and there are things that can be done now to drastically improve transparency in the market. We need to stand up for small businesses to help drive down bills - and we need to get moving today."
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