Rogue UK energy bosses and brokers face crackdown on mis-selling
Source: The Guardian ·
Exclusive: Ofgem to be given powers to issue fines and rein in bonuses for executives who ‘reward themselves while customers suffer’Energy bosses in the UK will have their bonuses curtailed when suppliers and brokers break the rules under a crackdown on mis-selling.Through the energy independence bill, which will be introduced on Wednesday, Ofgem will be given new powers to order compensation,…
From the source
Energy bosses in the UK will have their bonuses curtailed when suppliers and brokers break the rules under a crackdown on mis-selling. Through the energy independence bill, which will be introduced on Wednesday, Ofgem will be given new powers to order compensation, impose fines and ban rogue operators that have pushed businesses and households into overpriced contracts. Companies with a business energy supply contract often use a broker to secure their deal, but – unlike the intermediaries who market mortgages or insurance deals – these energy middlemen are largely unregulated. The government said rogue brokers had been able to push small businesses into overpriced energy contracts while pocketing hidden commissions, leaving companies paying more than they should. These energy brokers and price comparison services will now be brought under Ofgem’s remit. The move is expected to save businesses more than £100m a year from hidden commissions and mis-selling. The watchdog will also be…
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