Unscrupulous energy middlemen have deceived businesses for much too long and this needs to change.
That’s according to international energy services firm Schneider Electric which reckons the “wool has been pulled over the eyes of business for far too long” by some energy brokers.
The comments come as regulator Ofgem brought out a code of practice which is effectively mandatory as suppliers won’t be allowed to work with anyone not signed up to it.
Schneider believes an Ofgem-led code is “necessary” to build trust but it doesn’t think Ofgem’s draft wording “goes far enough”.
In a statement the firm said: The single most important step is to ensure TPI charges are completely transparent….businesses need to know exactly what the cost of advice will be before they ‘buy’ the advice – it’s not enough to simply state that there is a charge and that you can ask for more details once you’re committed.”
Energy UK, the trade body for suppliers agreed businesses “need to be protected”.
The body said: “Getting help to find the best energy deal is a good thing but small businesses need to be protected from crooks trying to rip them off.
“We believe cracking down on the minority of rogue brokers will make costs clearer, improve customer trust and help customers make better energy choices.”