Have you been approached by an unscrupulous Energy Broker?Member News
Be warned, there are a number of scams being used by unscrupulous energy brokers to obtain a letter of authority and secure supply contracts on behalf of business users. We have seen numerous examples of this and the number of cases appears to be growing week by week. Here are the 2 most common:
A cheaper unit rate (p/kWh)
You will be presented with an offer showing a significant saving against your current contract. Typically the proposal will show a day and night unit rate (in p/kWh) at much lower level than you are currently paying suggesting a significant saving. The catch here is the offer excludes many of the cost elements already included in your existing unit rate (all the non commodity charges).
It is the equivalent of filling your car with fuel, only to realise at the till the price didnt include duty, distribution or profit. The nasty surprise comes when you get your first invoice under the 'cheaper' supply contract
A free kVA check
The approach will be along the lines of complying with a new piece legislation known as DCP161. You will warned that unless you have this check carried out by the broker you will be in breach of the law. They will offer to conduct a check free of charge providing you sign their Letter of Authority. They may also claim to be working on behalf of the National Grid or Ofgem; neither have appointed a broker to carry out such work.
The underlying objective is always to get you to sign a Letter of Authority and this is key to the whole charade. It will almost always contain a clause that authorises the broker to commit you to supply contracts and once signed, you will have lost all control of your supply contracts and budget.
Be warned & as always if you're not convinced please don't sign paperwork. Even if you're not a client of ours feel free to pick up the phone to check or get a second opinion, the cost of not doing so could seriously damage your bottom line.
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