Despite a tough few years for UK companies who have not only faced a crippling rise in energy costs, the effects of inflation, loss of business during the pandemic and now the threat of a recession looming, there’s finally a glimmer of hope on the horizon that will help many weather the storm and keep their doors open until the brighter days ahead.
Unbeknown to many companies, the UK Energy Market has been unregulated until now.
The new measures emerged after a Guardian report earlier this year revealed that energy brokers had been left with free reign to overcharge thousands of businesses by an estimated £2bn because, unlike brokers selling mortgages or insurance, they were unregulated.
Ofgem’s investigation into “unscrupulous brokers”, which launched last summer, found that in one case, energy broker fees made up 50% of the total cost of the energy deal. The Guardian.
Up to 70% of companies are owed many thousands of Pounds in compensation. However, they either don’t know they have a claim or are unsure how to start the process.
Many UK Companies Aren’t Even Aware They’ve Used An Energy Broker
Over the years, companies have been taken advantage of and gotten lost in the fancy sales tactics used by Energy Brokers, also known as Utility Management Companies. While statistics say that up to 70% of companies in the UK have used a broker at some point over the last six years and are now legally entitled to claim back the hidden fees they’ve been paying, the majority don’t even know they’ve used one.
Energy Brokers are essentially 3rd party sales firms that act as the middlemen and women between your company and the large energy utility suppliers. You may have unsuspectingly been dealing with a broker you found through a comparison website or received a phone call or email from.
The fact that these firms never introduce themselves as Energy Brokers means that you may have been led to believe that you’ve been dealing with an energy supplier all along, whereas in fact, these entities are focused purely on sales and earning themselves a handsome commission that spans the length of your contract. It is also why energy brokers are keen to lock you in for as long as possible. Energy Brokers also often refer to themselves as Utility Management Companies.
How Do Energy Brokers Operate?
Energy brokers operate by disguising themselves as energy service providers by giving their companies energy-related names. They then promise companies the best deal on their energy contracts. In addition, they lead companies to believe they are experts in the energy industry, whereas in fact they are nothing more than sales firms.
Energy Brokers operate by locking your company into a long contract and adding hefty, hidden commission fees. This means that your company pays them an extra fee every time you use gas or electricity within your business for the entire length of your contract.
They then auction you off to the highest-bidding Energy Supplier, who may offer the lowest deal but is happy to keep the Broker’s hidden fees contained within your contract. So every time you pay your company’s Gas or Electricity bill, the utility supplier sends the Broker their fee, which has come directly from your pocket.
It gets really confusing because even though you’ve been dealing with a broker, the final contract you sign is with the actual Energy Supplier.
This means that the Broker’s name is never on the contract, nor are their fees which you were never made aware of, but you’ll now be paying for the life of your agreement. Your monthly bills also come directly from the supplier, meaning many companies believe they’ve never actually dealt with a Broker.
Aren’t Energy Brokers Entitled To A Fee?
Absolutely, like any business, a Broker, otherwise known as Utility Management Companies, should be entitled to a fee if they’re truly working to find you the best deal on your energy.
However, their fees should have been negotiable and transparent before you signed the contract. Like many companies, you might have been paying 35-50% extra in hidden commissions going directly into the Broker’s pockets each month.
Would you have signed that contract if you had been made aware of them at the time? Unfortunately, this means you’ve never truly had the best deal on your company’s energy rates.
Not only have the brokers been hiding their fees, but the utility companies have had no problem with this practice either. Simply put, you’re highly likely to be one of the 70% of companies in the UK that have been paying well over the odds for years and are now legally entitled to claim back the hidden fees you’ve been paying going back up to six years.
How To Identify If You’ve Used A Broker And Are Entitled To A Claim
The one document you will have signed if you’ve used an Energy Broker is a Letter of Authority. This gives the Broker the authority to act on your behalf when dealing with the utility supplier. If you have this document or remember signing one, that’s the easiest way to know if you’ve been dealing with a Broker who otherwise in this case describe themselves as a Utility Management Company.
“The process used by brokers has been specifically designed to confuse clients and hide large fees within their contracts. Yet, amazingly, many companies we speak with have no idea they’ve used a broker or are legally entitled to a claim” said David Sheehan of LBM Solutions.
How To Start The Claims Process Even If You Are Unsure If You Have Used A Broker Or Are Entitled To A Claim
It’s free and easy to find out if your company is entitled to an Energy compensation claim. Even better, it won’t cost you a penny to find out as we work on a completely no-win, no-fee basis.
Simply visit the LBM Solutions website and complete the short form at the bottom of the page to get started.
We make this process as easy and as simple as possible. All we’ll need is a copy of your company’s Energy Contracts, latest Gas and Electricity bills, and, if possible, the letter of authority you signed with the Broker. This allows us to quickly determine if you have a claim and how much you are now legally entitled to receive back.
Our average claim is worth more than £25,000, and many companies are owed significantly higher sums spanning at least six years.
While business utility bills continue to soar, threatening even the most established companies in the UK, a simple zero-cost water audit from a Water Cost Reduction specialist could result in significant refunds and rebates backdated up to six years. This usually results in the discovery of many thousands of pounds owed to companies that they didn't even know existed.
Fun fact: It takes approximately 1,847 gallons of water to produce 1 pound of beef. That's enough water to fill 39 bathtubs all the way to the top.
A not-so-fun fact: The UK Water companies routinely overcharge their company customers. As a result, one in four companies has been paying over the odds for many years. With rising utility costs and an economy on the brink, many well established companies are struggling to stay afloat.
As business owners, we take it for granted that the bills coming through our door are accurate and correct. We pay them without question. However, for many thousands of companies in the UK this isn't the case and an estimated one in four companies have been subjected to overcharging by the water companies in at least one or more of the following areas:
- Trade Effluent
- Water supply & non-return to sewer
- Surface water and highway drainage
- Meter issues
- Water leaks
Here at LBM Solutions, we investigate all aspects of water usage your company is subject to billing for and can then claim back what you're owed on a completely no-win, no-fee basis. Claims can be pretty significant as we can identify and claim overcharging going back six years. In fact, we recently secured refunds worth over £825,000 for Hovis and £1M for the NHS.While business utility bills continue to soar, threatening even the most established companies in the UK, a simple zero-cost water audit from a Water Cost Reduction specialist could result in significant refunds and rebates backdated up to six years. This usually results in the discovery of many thousands of pounds owed to companies that they didn't even know existed.
Fun fact: It takes approximately 1,847 gallons of water to produce 1 pound of beef. That's enough water to fill 39 bathtubs all the way to the top.
A not-so-fun fact: The UK Water companies routinely overcharge their company customers. As a result, one in four companies has been paying over the odds for many years. With rising utility costs and an economy on the brink, many well established companies are struggling to stay afloat.
As business owners, we take it for granted that the bills coming through our door are accurate and correct. We pay them without question. However, for many thousands of companies in the UK this isn't the case and an estimated one in four companies have been subjected to overcharging by the water companies in at least one or more of the following areas:
- Trade Effluent
- Water supply & non-return to sewer
- Surface water and highway drainage
- Meter issues
- Water leaks
Here at LBM Solutions, we investigate all aspects of water usage your company is subject to billing for and can then claim back what you're owed on a completely no-win, no-fee basis. Claims can be pretty significant as we can identify and claim overcharging going back six years. In fact, we recently secured refunds worth over £825,000 for Hovis and £1M for the NHS.
We have a great relationship with the Water suppliers, who work with us to resolve any anomalies we find for our clients. All of our work is non-intrusive and does not affect your water supply or relationship with your Water supplier in any shape or form.
Our Water cost reduction specialists have been maximising the efficiency of water usage, including securing significant savings and refunds on historical overbilling charges at no upfront cost for UK companies for over 25 years.
Being a leading supplier of services to National High Street Retailers, NHS & Primary Trust, the Education Sector, Councils, the British Aerospace Industry, Chambers of Commerce, and top brand Food and Drink Manufacturers has given us a very broad and comprehensive understanding of the water industry that ensures we always identify irregularities and deliver optimum results/refunds often exceeding our client's expectations.
We provide a complete forensic analysis of water usage and billing for your company at zero upfront cost.
If we can't save your company significantly on your water costs in savings, refunds and rebates, you don't pay a penny. You can be safe knowing that your company is being billed correctly for every aspect of water usage. Think of our services as your company's equivalent of a free, comprehensive water MOT.
Surface Water Drainage Refunds
If the rainwater falling onto your company's premises goes straight into the public sewer, that's surface water drainage. This surface water is collected and purified by your water provider and the water companies charge you for this service.
Surface water drainage fees are assessed if water from your property flows into a public sewer. However, you may be excused from subsequent surface water fees if you demonstrate that your property's rainfall does not run into the public sewer (through soakaways, on-premises recycling, etc.). In addition, if you have already paid for surface water drainage, you may be eligible for a refund.We have a great relationship with the Water suppliers, who work with us to resolve any anomalies we find for our clients. All of our work is non-intrusive and does not affect your water supply or relationship with your Water supplier in any shape or form.
Our Water cost reduction specialists have been maximising the efficiency of water usage, including securing significant savings and refunds on historical overbilling charges at no upfront cost for UK companies for over 25 years.
Being a leading supplier of services to National High Street Retailers, NHS & Primary Trust, the Education Sector, Councils, the British Aerospace Industry, Chambers of Commerce, and top brand Food and Drink Manufacturers has given us a very broad and comprehensive understanding of the water industry that ensures we always identify irregularities and deliver optimum results/refunds often exceeding our client's expectations.
We provide a complete forensic analysis of water usage and billing for your company at zero upfront cost.
If we can't save your company significantly on your water costs in savings, refunds and rebates, you don't pay a penny. You can be safe knowing that your company is being billed correctly for every aspect of water usage. Think of our services as your company's equivalent of a free, comprehensive water MOT.
Surface Water Drainage Refunds
If the rainwater falling onto your company's premises goes straight into the public sewer, that's surface water drainage. This surface water is collected and purified by your water provider and the water companies charge you for this service.
Surface water drainage fees are assessed if water from your property flows into a public sewer. However, you may be excused from subsequent surface water fees if you demonstrate that your property's rainfall does not run into the public sewer (through soakaways, on-premises recycling, etc.). In addition, if you have already paid for surface water drainage, you may be eligible for a refund.
Water supply and non-return to sewer rebates
The non-return to sewer allowance refers to the quantity of water not flushed down the public drainage system. This non-return to sewer allowance will be taken care of by your company's water provider. It is possible to reduce your sewage cost if the quantity you return to the sewer is much lower than the estimated amount.
Many of our customers have lost money due to the water company's incorrect application of this billing mechanism. Over the years, our work has resulted in the recoupment of Millions of pounds for our clientele.
Trade Effluent Refunds
Trade Effluent collection, treatment, and disposal costs vary according to the volume of effluent emitted and the quality of the wastewater.
Determining Costs of Trade Effluent:
The Mogden formula is used to calculate fees. This factor accounts for the following important expenses:
Collection
Primary treatment
Biological treatment
Treatment and disposal into the sea
Biological oxidation of settled sewage
Treatment and disposal of primary sludge
The calculation considers the trade effluent treatment requirements of each client. Thus, understanding the 'cleanliness' of your effluent is crucial to reducing your ultimate bill.
Because fees are based on regional averages rather than actual expenses spent on any one treatment work, fees are set by each individual Water company.
We will calculate your trade effluent and ensure you've been paying correctly. If this isn't the case, we can put in a claim for refunds going back up to six years.
Trade Effluent Refunds
Trade Effluent collection, treatment, and disposal costs vary according to the volume of effluent emitted and the quality of the wastewater.
Determining Costs of Trade Effluent:
The Mogden formula is used to calculate fees. This factor accounts for the following important expenses:
Collection
Primary treatment
Biological treatment
Treatment and disposal into the sea
Biological oxidation of settled sewage
Treatment and disposal of primary sludge
The calculation considers the trade effluent treatment requirements of each client. Thus, understanding the 'cleanliness' of your effluent is crucial to reducing your ultimate bill.
Because fees are based on regional averages rather than actual expenses spent on any one treatment work, fees are set by each individual Water company.
We will calculate your trade effluent and ensure you've been paying correctly. If this isn't the case, we can put in a claim for refunds going back up to six years.
Downsizing and Verification of Meters
Water meters are now standard for almost all commercial and industrial clients, and their readings are used to calculate the average daily volume of raw sewage.
A water meter may be used to calculate your dirty sewage costs by multiplying a volumetric rate by the amount of water consumed and subtracting an adjustment for the water lost to the drains.
Most providers additionally tack on an additional "standing charge," the amount of which is calculated by the size of your water meter. We will check your meter's size and reading to ensure it is enough for your company's needs and that you are being charged fairly.
Downsizing and Verification of Meters
Water meters are now standard for almost all commercial and industrial clients, and their readings are used to calculate the average daily volume of raw sewage.
A water meter may be used to calculate your dirty sewage costs by multiplying a volumetric rate by the amount of water consumed and subtracting an adjustment for the water lost to the drains.
Most providers additionally tack on an additional "standing charge," the amount of which is calculated by the size of your water meter. We will check your meter's size and reading to ensure it is enough for your company's needs and that you are being charged fairly.
Leak Detection And Refunds
Most businesses will, at some point, experience a water leak. Unfortunately, leaks from underground pipes, plumbing fixtures and fittings can lay undetected for many years and significantly cause wasted water and money.
Our team of leak detection specialists not only detects and repair leaks within your company premises, we will also calculate your historic losses caused by the leak and negotiate with the water company any refund entitlements due which can often be valued at several thousands of pounds.
We can initially investigate this for you without any capital expenditure. Furthermore, many leaks will generate refunds with values far exceeding the repair cost, helping any such project remain "cash positive" throughout the term.
Visit LBM Solutions For Your Company’s Free Water Audit
Visit LBM Solutions for your 100% no upfront cost Water audit. Working on a purely no win, no fee basis, we’ve secured over £35Million in water refunds and rebates for our clients to date.Leak Detection And Refunds
Most businesses will, at some point, experience a water leak. Unfortunately, leaks from underground pipes, plumbing fixtures and fittings can lay undetected for many years and significantly cause wasted water and money.
Our team of leak detection specialists not only detects and repair leaks within your company premises, we will also calculate your historic losses caused by the leak and negotiate with the water company any refund entitlements due which can often be valued at several thousands of pounds.
We can initially investigate this for you without any capital expenditure. Furthermore, many leaks will generate refunds with values far exceeding the repair cost, helping any such project remain "cash positive" throughout the term.
Visit LBM Solutions For Your Company’s Free Water Audit
Visit LBM Solutions for your 100% no upfront cost Water audit. Working on a purely no win, no fee basis, we’ve secured over £35Million in water refunds and rebates for our clients to date.
