The energy crisis continues to cause disruption in both domestic and commercial circles, and manufacturing has been hit particularly hard

2021 has been a year unlike any other for the energy sector. As businesses and individuals alike continue to struggle to recover from the COVID-19 pandemic, they’ve also had to face ongoing chaos with both energy prices and suppliers.

This has marked an unprecedented period of difficulty within the manufacturing sector, where gas shortages and escalating energy costs are causing overheads to surge with no signs of slowing down. Industry leaders have even warned that the energy crisis could halt the factory production of paper, steel and more in the UK, slowing supply chains across the country.

After attending a meeting with business secretary Kwasi Kwarteng in October, industry leaders spoke to BBC Radio 4’s today programme about the potential consequences of the crisis for manufacturing.

Andrew Large, director-general at the Confederation of Paper Industries, commented on the risk of fallout across the supply chain, saying: “It was very, very clear across all of the sectors that there are serious risks of effectively factory stoppages as a result of the costs of gas being too high to bear.” 

The energy crisis could have a knock-on effect for UK manufacture as a whole, explains Gareth Stace of UK Steel, forcing businesses to rely on outsourcing and risking the closing of steel plants for good.

“The nightmare scenario would be that we produce less steel in the UK, that we see all of that steel […] be met by imports,” says Stace. “Once you take away a steel plant you don’t really bring them back. That’s it for good. Once it’s done, it’s done.”

As well as rising prices, businesses must also be aware of hidden commission costs

The energy crisis has created a landscape of chaos and uncertainty that, as well as casting doubts on manufacturing futures, has also presented unscrupulous brokers with an opportunity to maximise their commissions without fanfare.

Unlike domestic energy, business energy contracts are not tightly regulated by Ofgem, meaning brokers aren’t required to be transparent when it comes to breaking down costs. Hidden business energy commission is being added to energy contracts across all industries as a way for brokers to make more money at the expense of their customers. 

With first-hand experience of mis-sold energy contracts, Winn Solicitors have committed to helping businesses pursue compensation for unethical contracts containing hidden commission costs, as mid-sold energy contracts are impacting organisations across all industries. It’s estimated that UK businesses have been overpaying by as much as hundreds of millions of pounds due to hidden commission within their contracts. 

Winn Solicitors are giving businesses the chance to seek justice for their overpayments on a no win, no fee basis. This protects businesses from financial risk, as the prospect of paying fees can deter organisations from seeking justice. With their own mis-sold energy claim set to be in the region of 20% of payments, Winns estimates that they can help organisations recoup between 10% and 20% of their energy costs. This could be essential for manufacturing businesses facing tough times as a result of the energy crisis.

This kind of support can help manufacturing organisations break out of mis-sold contracts and move onto 100% green energy alternatives that are both transparent and ethical.

If you think you may have fallen victim to hidden business energy commission, contact the team at Winns Solicitors here.