Third law firm begins claim over inflated energy bills

Litigation specialist RGL Management is the latest law firm to file a class action lawsuit against major energy suppliers for inflating bills by paying undisclosed commissions to brokers.

The claim, expected to be worth more than £500 million, is being made on behalf of thousands of small businesses and organizations such as charities.

RGL says the average claim will be in the region of £60,000. It believes it can recover the cost of commission paid by energy companies to brokers and then recover it through a levy (a higher unit price) on customers’ accounts. Customers were unaware of the practice.

Legal experts believe such commissions were a form of bribery and undermined the integrity of brokers, who had a duty to provide companies with impartial recommendations. All business energy suppliers paid commissions – including British Gas and Scottish Power.

In 2019, a report by energy regulator Ofgem on the energy market for “micro-enterprises” referred to “sharp practices by some brokers” and “gaps” in the available narrative. RGL chief executive James Hayward said: ‘For years energy companies have acted with impunity to cover up hidden payments to brokers, artificially inflating costs for UK companies.

“Now that this illegal practice has come to light, RGL is launching this claim to seek appropriate redress for all affected businesses.”

Companies that have gas and electricity contracts through an intermediary since 2012 may be eligible to join the claim. Rival attorneys Harcus Parker and Leigh Day have filed similar claims.

Claims can be submitted to: energydisputes.com (Harcus Parker); leighday.co.uk/our-services/group-claims/energy-broker-commission-claim (Leigh Day); and belit.co.uk (RGL).