Call for veterinary practices to check energy deals amid legal claim

Veterinary practices are being urged to find out if they could claim compensation over the role of third-party brokers in setting non-domestic customers’ energy costs.

The call has been made by lawyers who are preparing to bring group litigation action in a case they believe could cost the energy industry more than £2 billion.

Letters before action are being sent to several suppliers and one of the law firms bringing the case, Harcus Parker, said it is already acting for hundreds of claimants on a no win, no fee basis.

A small number of veterinary practices are understood to be considering joining the action.

Without knowledge

Harcus Parker said it is seeking to reclaim what it alleges are undisclosed commissions paid by energy suppliers to brokers, without customers’ knowledge, to encourage them to persuade clients to sign up.

It is claimed that the practice ignored whether customers would end up paying more for their energy as a result and the veterinary sector is among many areas that are likely to have been targeted by it.

The action has been initiated ahead of the planned scaling back of government support for energy bills from April.

Warning

The BVA has previously warned that some practices could be forced to close altogether without additional assistance.

Harcus Parker said it has secured more than £10 million of litigation funding to bring the case, which currently has an average claim of around £20,000 per customer.

It also believes long-term contracts for heavy users could mean some claims are worth more than £1 million on their own.

Hit hard

Senior partner Damon Parker said: “Vet surgeries are particularly large consumers of energy – especially as they don’t have the option of turning down the thermostat to help keep on top of their bills. We are very aware the increase in gas and electricity prices has hit them particularly hard.

“The aim is to help businesses recoup some of these secret commissions for them from the energy companies, that may help ease the financial burden of the energy crisis.

“The claims are fully funded and insured, and as a result, we are able to act for clients who ordinarily would not have the resources to access justice in a claim of this kind, on a ‘no-win, no-fee’ basis.

“I would urge all non-domestic energy customers who have used a broker to source their energy supply, and were not told how much and how their broker would be paid, to see if they are eligible to claim.”

A dedicated website has been set up to help organisations determine if they may have a claim.