Hidden commission fees still plague energy consultancy market

Leading energy experts at Bergen Energi UK have warned energy intensive businesses they may be paying up to 10 times more consultants’ commission than necessary when buying power or gas. The independent energy brokers are calling for a review of legislation and tighter regulation of the energy consultant market following a series of prospective customer audits, which have shown many are repeatedly paying hidden fees. Bergen Energi UK Vice President Richard Southgate said: “Bergen Energi provides in-depth energy insight and independent expert advice to large multi-site organisations on a daily basis. “It is surprising the percentage of purchasers, who are completely unaware of the astronomical concealed commission charges they are paying. In many cases they have been doing so for years, which can equate to millions of pounds in lost capital. “Although the UK energy consultancy market is mature and is a competitive marketplace, there is relatively little regulation and it is clear from our findings that businesses need better pricing information to base their procurement decisions on. “There seems to be a sense that big businesses can look after themselves, but this situation certainly wouldn’t be allowed to arise in the financial services market so why should it still exist in the energy market? “The problems can arise no matter what product or contract is in place. Consultants frequently negotiate with energy suppliers to add-on a hidden commission to unit rates before these are quoted to the customer. This means they end up paying much more per kWh than necessary. “Around 80 per cent of energy consultants receive their fees directly from suppliers. So it is not surprising that so many companies are being compromised.” “However, this service is completely auditable and any end users can request their incumbent suppliers to confirm if any additional commissions have been built in by the consultants. Bergen Energi UK can provide expert support with this process. “By analysing original supplier bids and current contracts we can very quickly identify overcharging and clarify exactly how the relationship works between customer, supplier and consultant.” Bergen Energi UK provides price transparency across all its energy market services and even actively encourages its customers to communicate with suppliers in a three-way partnership. This open arrangement improves trust and fosters long term relationships. Richard Southgate, added: “Our neutral role combined with an upfront and transparent charges sets us apart from the competition and completely removes financial self-interests. We operate solely as an unbiased and independent intermediary and contract manager. “The industry needs watchdogs like us, and I am confident that our efforts will be profitable in the long run, both in the form of a more efficient market and in the form of loyal clients.” -ENDS- Issued on behalf of Bergen Energi by Adessi For more information contact Beth Leonard at Adessi on Tel: +44 (0) 113 256 9999 Fax: +44 (0) 113 256 9989 Email: beth.leonard@adessi.co.uk For a high res version of this image please contact Adessi Insert press release photography Caption Notes to Editors: • Bergen Energi UK based in Leeds, West Yorkshire, is one of the UK’s leading energy service providers. Established in 2002 it offers innovative, bespoke energy solutions for business end users in the UK and Europe. • The company’s key services include energy procurement, brokerage, risk management, consultancy and data and invoice management. • Bergen Energi UK’s proven track record in the tendering and portfolio management of electricity, gas, CO2, brokerage and administrative services has gained it a reputation as a trusted independent energy partner. • Bergen Energi UK works with some of the UK's largest energy end users over a broad range of industry and commerce, public authorities and large international groups. • Bergen Energi UK is one of Bergen Energi’s nine European offices. As a group the company employs more than 160 energy specialists in the UK, Norway, Sweden, Denmark, Finland, Germany, the Netherlands, France and Italy. It is also active in Spanish, Austrian and Eastern European, Asian and US markets. • Bergen Energi currently has more than 950 clients in the Nordics, Continental Europe and the UK, with an annual energy supply of 85TWh /€7bn. • The company has trading representative on energy exchanges and in the bilateral OTC energy markets and works actively towards a better energy market by working with national and international authorities, regulators and organisations. • To learn more about Bergen Energi please visit: www.bergen-energi.com

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