Are Secret Energy Commissions Costing Your Salon Business?

July 06, 2023

More than 50 hairdressing salons across the UK have joined a £2 billion legal claim aimed at getting compensation from energy giants that have allegedly paid secret commissions to third-party brokers.

The undisclosed broker commissions which were added onto the unit cost of gas and electricity are said to have falsely inflated energy prices for up to two million businesses and organisations in the UK.

Law firm Harcus Parker is launching group litigation to reclaim these secret commissions that were made by the energy suppliers without customers’ knowledge. So far, the firm has 57 claims from hairdressing salons alone – and more than 2,000 wider business claims – with more being urged to join.

‘We understand that hairdressing salons are under a lot of financial pressure at the moment, not just caused by higher energy prices. It seems everyone on the high street is suffering with higher costs’, says Damon Parker, senior partner at Harcus Parker.

‘We hope that by helping to return some of these secret energy commissions to businesses it will help ease some of the financial burden. With many claims stretching back several years and energy consumption in hairdressers often quite high, we would expect them to be able to claim back thousands of pounds each. We would urge any hairdressers who have not yet joined the legal action to contact us to see how we can help.’

Research conducted by the law firm found that one energy supplier offered brokers as much as 10p/kWh in commissions that were then added to customers’ bills, frequently without their knowledge. In this case, unscrupulous brokers are accused of being more interested in getting themselves the highest amount of commission possible rather than getting the customer the best financial deal.

Who is eligible to make a claim?

To enter a claim, you should be able to answer ‘Yes’ to the following three questions:

  1. Are you a business or organisation that has been supplied your gas or electricity as a non-domestic energy customer?
  2. Did you enter into your contract for the supply of gas or electricity in the past 10 years through a third-party introducer or broker?
  3. Did the broker and energy company fail to clearly tell you that commission was added onto the unit cost of the gas and electricity that you were charged?

Click here to register your claim