Harcus Parker Takes on Energy Giant Secrets
London’s Harcus Parker, a sharp‑witted law firm, has launched a bold group action to pry back secret commissions that energy behemoths paid to broker firms without ever telling business customers. They’re thrilled that the energy regulator, Ofgem, has finally decided to force all energy suppliers to lay their cards on the table.
What’s the Big Deal?
- Regulators previously only demanded disclosure for micro‑businesses. Now the rule rolls out to every business, big or small.
- Unseen broker fees have been tacked on to gas and electricity rates, swelling prices for up to two million businesses in the UK over the past decade.
- Harcus Parker estimates the legal claim could reach a staggering £2 billion.
Ofgem’s New Mandate
Effective December 2023, all non‑domestic customers must now be shown how much any third‑party broker gets paid. That means energy bills will finally reveal the hidden hand‑shake behind the price.
Why Some Firms Want to Stay in the Dark
During the litigation, Harcus Parker noted that some energy companies have tried to make a case that because the rules for micro‑businesses require disclosure, they can dodge the same obligation for larger firms. “This loophole shows the industry needs tighter regulation,” the firm says.
What the Senior Partner Says
Damon Parker, senior partner at Harcus Parker, says: “We’re delighted that Ofgem is extending the requirement for all businesses to know exactly how much they’re paying brokers. This is long overdue.”
“Since we began the lawsuit to recover hidden broker commissions, we’ve kept calling for transparent billing in all sectors. In most regulated industries, third‑party payments are clear from the get-go.”
“Ofgem has known about this problem for ten years and should have acted sooner, but this is still a win for business customers.”
“When lawyers for some energy companies use the micro‑business rule to hide broker fees for larger firms, it underscores the need for tighter regulation. We hope our campaigning helped push the regulator into action.”
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