Business Energy mis-selling and/or fraudulent selling.

bigrobbiet

I own a small restaurant in Liverpool. In 2022 we used a broker to get us a business energy deal (at the time energy deals were record high). We had no experience or knowledge of business energy so relied on our broker to get the best deal for us in our position. We contacted a broker that got us on a deal with Valda energy for 3 years (gas: 21.83 p/kWh & 31p/day standing charge. Elec: 70.64 p/kWh & 0.775p p/day standing charge) - this has meant our average energy bill for our small restaurant is £4300 (in comparison in current prices they'd be around £1000). We eventually realised that our energy contract may have been mis-sold (having spoken to a lawyer) who told us to go the ombudsman ( as the commission received by the broker was not stated in our phone call which we had a recording of )  but our brokers details could not be found. We took the case up against Valda instead. This was summer 2023.

The ombudsman said it is correct that we were mis-sold and that we should be released from our contract. Valda appealed. Their appeal was rejected by the next investigator too and the original decision was upheld - this would normally be the end of the case. However, somehow, Valda went and spoke to someone beyond the process in the ombudsman process that stated they didn't mis-sell the contract so it isn't their problem. This person agreed and stated that even though we may have been mis-sold the contract it wasn't because of Valda and we are to remain in contract with them. He recommended a different ombudsman service for brokers which we went on to do.

So I tried to find more details of our broker in our emails yet there were none whatsoever. I googled the name of the broker and found that the broker had been found guilty of fraud for mis-selling over inflated energy contracts to small businesses and was being investigated when she spoke to us. She pleaded guilty (this was documented in the Andrew Pilley case here).  We were not made aware of any of this. So we went through the ombudsman again stating that we weren't told of our commission, that we were negligently told to take a 3 year deal when other brokers we spoke to at later dates confirmed they were only recommending 12/18 months max because prices were due to go down and also that our broker was found guilty of fraud. We were the only party to submit evidence in this case and the broker called my phone to beg me to drop the case because she was on a suspended sentence. However, despite the phone call being the only piece of evidence submitted, this time the ombudsman found we weren't mis-sold and stated it was because our case was linked from the first ombudsman process that eventually was rejected. I tried to make the ombudsman aware that the reason it was rejected was because it was against Valda and not the broker (which we admit was our mistake). She ignored this. She also stated that the fact our broker was convicted of fraud for practices similar to which we experienced was completely irrelevant. 

I tried to challenge the decision but I was unable to and the ombudsman told me 'you may not like it but it's my decision' and we should seek legal advice instead. We find it completely unreasonable that a large energy company can go outside of the system to get their decision overturned but ours was completely rejected.

Valda called me saying they would let us out of the contract if I paid them £39,000. I burst out laughing out of sheer disbelief. We have less than 10k in the bank because all our money goes straight to them. I haven't paid myself once since we opened. We have had other issues with Valda too but no resolutions to anything.

I also contacted my MP who met with me to discuss this but the election was called and all processes were stopped.

We now face a position where we are basically having to look at insolvency because we cannot afford to carry on due to this mis-selling issue.

I am seeking any advice whatsoever as I don't know what else I can do. My energy bill for our little restaurant was just under £4000 this month. We have changed our opening hours, turn off any power we can. Everything, yet it doesn't help.  The rise in minimum wage and food/drink hasn't helped and there's only so much we can charge for our food and drink. 

If anyone could offer guidance and assistance it would be greatly appreciated.

Savvy_Sue

Go back to your MP? Even if it's a new one ...