Unknown levels of commissions to energy brokers and price comparison websites are contributing to higher energy bill costs for householders and industry. Energy suppliers and brokers were today challenged by energy expert David Hunter, from global energy management company Schneider Electric, to be open about these hidden costs.
Speaking on BBC1’s Breakfast programme, Mr Hunter told presenter Louise Michin that we are facing increasing energy bill announcements but weren’t being given full visibility of how the costs are made up.
Asked to explain whether bill increases were justified, and what the reasons were behind the increases, David Hunter said there was not enough competition in the market, and although we shouldn’t let the suppliers off the hook, increasing costs of green subsidies, energy efficiency schemes and rewiring Britain were adding more to bills at the moment than wholesale costs.
However, he further explained that an unknown portion of the ‘suppliers’ costs’ on the bill is paid in the form of commission to energy brokers and price comparison websites.
While these companies provide a valuable service, David said: “One thing we don’t see broken down in the figures is how much money goes in hidden commission from the suppliers to those websites, and I think that would be interesting to see.”
Later he added: “At a time when rising bills are placing real pressure on the cost of living, and also increasing the costs of British industry doing business, it has never been more important that all aspects of the bill are made transparent.
“From supplier/producer profits to green policy costs and broker commissions, all charges should be open and scrutinised so that homes and businesses don’t pay a penny more than they need to, just to keep the lights on.
“As a start, I call today on both suppliers and brokers to clearly state the amount of hidden commission included on energy bills, and would ask customers whether they are prepared to put up with secret third party costs at a time when bills are shooting up?”