The Hidden Power Behind Energy Bills

Energy Fat Cats

When UK small businesses were hit with the energy crisis of 2021 to 2023, the official explanation was simple: a global gas shock, made worse by the war in Ukraine, drove wholesale prices to record highs.

That explanation tells only part of the story. Beneath the market headlines lies a quieter, more systemic problem and one that Clear Charge Claims say is costing businesses thousands each year in hidden fees, while global asset managers reap the rewards.

The Price Shock That Wasn’t Just About Gas

In 2021, global demand for gas rebounded after COVID restrictions eased. European gas storage was low, liquefied natural gas shipments were tight, and prices began to rise.

By February 2022, Russia’s invasion of Ukraine sent shockwaves through the market. Wholesale gas prices climbed more than 400 per cent compared to pre-pandemic levels, with electricity prices rising in parallel.

Households had some protection through the Ofgem price cap. Businesses had none. Fixed contracts expired into a brutal market, with renewal rates three to five times higher than before.

The Hidden Broker Commission Problem

For many, the pain was amplified by an industry practice rarely discussed in public: broker commissions built invisibly into the price per kilowatt hour.

Brokers, or “third-party intermediaries” (TPIs), often receive payment from the supplier rather than charging the client directly. Instead of a transparent fee, their commission is embedded in the tariff. The client sees only a single rate, unaware that pence per unit are being siphoned to the broker.

In 2024, the Court of Appeal in Expert Tooling & Automation Ltd v Engie Power Ltd confirmed that failing to disclose such commissions can breach a broker’s duty to its customer. Even if a client knows a commission exists, it must be told how much and how it is calculated.

A related case before the Supreme Court : FirstRand v Hopcraft could expand these rights further by removing the need to prove dishonesty in certain scenarios.

BlackRock and the Concentration of Ownership

When you follow the trail from inflated bills, through supplier profits, and up to shareholder payouts, one name emerges again and again: BlackRock.

BlackRock is the largest asset manager in the world, controlling more than 10 trillion US dollars of client assets.

Public shareholding records show:

• BlackRock holds around 8 per cent of SSE plc, the parent company of SSE Business Energy

• It is a major investor in National Grid, which owns and operates the UK’s high-voltage transmission network

• It holds significant stakes in Centrica plc, the owner of British Gas

These are not just passive investments. Large shareholders have voting rights on executive pay, dividends, and corporate strategy. In effect, a small group of global asset managers can influence decisions that shape the UK’s energy market and, indirectly, the prices paid by UK businesses.

Incoming Government Policy

The government has acknowledged that a lack of transparency in the broker market has harmed businesses. In 2024 and 2025, several reforms were rolled out:

From October 2024, Ofgem requires suppliers to disclose broker commissions in all business contracts. For microbusinesses, the total cost over the contract must be shown; for larger firms, the cost per unit must be broken out.

The Department for Energy Security and Net Zero has consulted on a General Authorisation regime for TPIs, which would require formal accreditation, commission transparency, and stronger accountability.These changes are welcome, but campaigners warn they will not deliver justice for historic contracts unless paired with a system for retrospective redress.

The Impact across the UK

UK high streets, industrial estates, and hospitality sector bore the brunt of the crisis. Clear Charge Claims is representing multiple firms that were locked into long, expensive contracts during the height of the market spike for contracts that, in many cases, carried undisclosed commissions. A spokesperson for the Clear Charge Claims said:

“We are seeing the same pattern across the county; brokers inserting commissions worth thousands of pounds, with no clear disclosure, during the most volatile market in living memory. That money flowed to suppliers and ultimately to shareholders, many of whom are the same global investors who hold large stakes across the entire energy sector.” 

Why This Matters Now

The combination of legal precedent, regulatory reform, and public scrutiny means the window for action is open. But it will not stay open forever. Businesses that signed broker-arranged contracts in the last decade may be entitled to reclaim significant sums.

For many, this could mean not just financial redress, but also a measure of accountability in a market where local businesses have been too often treated as collateral damage.

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