An investigation by The One Show’s Watchdog programme revealed concerns about the practices of energy broker Bionic.
Bionic claims to have assisted over 200,000 businesses in Britain in securing favourable energy deals, earning commission upon contract sign-ups.
However, not all customers are satisfied with the outcomes.
A customer expressed on the BBC’s programme dissatisfaction with a three-year contract, explaining that the terms were not clear and she felt trapped.
Other customers have also reported being signed up for long term contracts without receiving prior notice or the option to opt-out.
One optician from Derby, who signed a 12-month contract last July, shared her experience.
Bionic had assured her of an easy renewal process through its digital service, promising to send the best renewal options via e-mail or text.
She was allegedly informed that she would have three days to decline any new offers.
However, she claims that she received no communication until a letter confirmed she was now on a three-year contract with another energy company.
She insisted she never received the promised e-mails.
Over 20 other customers have made similar complaints, stating that they did not receive renewal e-mails and were automatically renewed onto three-year contracts.
Bionic’s practices have raised concerns, especially as small businesses face financial challenges.
Sean, who runs a garage, found himself in a similar situation. Expecting new quotes this year, he told the BBC he was surprised to discover he was already signed up for another three-year contract.
His new deal significantly increased his monthly costs.
Despite Bionic’s claims of sending e-mails and texts, Sean and others maintain they received no such communications.
In response, Bionic acknowledged that some customers are not receiving its e-mails and has started sending text messages as well.
It cited price volatility as a reason for customer dissatisfaction but emphasised its commitment to transparency and customer interests.
Bionic stated it would work to release customers from contracts if errors were found and is investigating the issues further.
Nonetheless, it maintains that records show e-mails and texts were sent and opened.
Chris Shaw, Chair of the Energy Consultants Association told Energy Live News: “Sadly the BBC report appears to be another example of poor broker behaviour – by not facilitating the right products for the customer and the lines of what’s in the customer versus the brokers best interests getting blurred.
“Auto renewal solutions can be a very effective product and provide great outcomes and reduce the risk of going out of contract if they are built and sold properly.
“Thankfully Bionic offer a “Make it Easy Guarantee” which allows customers to get the commission paid to Bionic back if they complain.
“But for many customers as the BBC highlighted this won’t go anywhere near the extra cost customers are incurring after locking into high priced long term contracts.
“Suppliers need to do the right thing and allows contracts to be terminated if they have been miss-sold – something I would assume the Ombudsman would also support with rulings.”
Energy Live News contacted Bionic for comment – the company declined to comment further.
Energy Live News has contacted Ofgem and Energy Ombudsman for comment.
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