The energy market has become a hunting ground for numerous malicious actors. Faced with the complexity of offers and the volatility of prices, more and more professionals and individuals are turning to energy brokers, hoping to make substantial savings. Unfortunately, behind tempting promises often lie fraudulent practices that can be very costly. A recent investigation by the program “Cash Investigation” highlighted the shocking techniques of certain brokers, revealing a system where deception is sometimes established as a business model [1].

The goal of this article is to arm you against these scams. We’ll unpack the seven most common scams, provide you with a foolproof checklist for verifying a broker’s reliability, and tell you what to do if you’re a victim of fraud. The stakes are high: protecting your business and personal finances from unscrupulous actors.

The 7 Most Common Energy Broker Scams

Fraudsters use well-honed strategies to gain your trust and get you to sign unfavorable contracts. Learning to recognize these warning signs is the first line of defense. Here’s an infographic that summarizes the 7 pitfalls to avoid.

1. Hidden commission above 15%

This is the most widespread and insidious scam. A broker is paid by the energy supplier via a commission included in the price per kWh you pay. While a commission of 2% to 5% is considered normal, some brokers do not hesitate to charge rates of 15%, 20%, or even more, without ever clearly informing you. This excessive commission is deducted directly from your bill, transforming the promised savings into significant additional costs.

The French Directorate General for Competition, Consumer Affairs, and Fraud Control (DGCCRF) has sanctioned several companies for such deceptive practices, highlighting the lack of transparency as a major problem in the sector [2].

Here is a table to visualize the impact of an excessive commission:

2. Unrealistic promises of savings

“Cut your bill in half!” If a promise seems too good to be true, it probably is. Fraudulent brokers lure their prey with spectacular, unguaranteed savings projections. They often use biased comparisons, deliberately omitting fees or basing their claims on rates that are no longer current. Once the contract is signed, the reality is often quite different, and the bill is higher.

3. Pressure to sign immediately

“This offer expires in one hour!” Haste is the enemy of caution. A legitimate broker will always give you time to study and compare the contract. Scammers, on the other hand, create a sense of urgency to prevent you from reading the fine print. They may be insistent, even aggressive, in an effort to get your signature as quickly as possible. Never give in to this pressure.

4. Lack of approval or certification

The energy broker profession is not yet a regulated profession in France, which means that anyone can proclaim themselves an expert. However, organizations like the Union of Energy Brokers (SCE) are attempting to improve the professional standards by offering ethical charters and quality labels. A fraudulent broker will be careful not to mention any affiliation or certification. Worse, some do not hesitate to pose as agents of the government or official organizations to appear more credible.

5. Abusive termination clauses

A brokerage contract must be clear about its termination conditions. Scammers, on the other hand, excel at drafting contracts that trap you in the long run. They insert complex automatic renewal clauses and exorbitant exit penalties, making termination virtually impossible without losing money. Read every line of the contract carefully before committing.

6. Aggressive canvassing and stolen data

Are you receiving incessant calls from a broker even though you’ve never used their services? Be wary. Many unscrupulous broker networks operate using illegally purchased personal data files. They engage in aggressive telephone or email canvassing, in total violation of data protection regulations (GDPR).

7. Advance invoicing or double mandate

A broker should never ask you to pay an application or service fee before they even begin their work. Their compensation comes from the provider, not directly from your pocket. Some scammers even go so far as to have you sign a double mandate, binding you to both the broker and a provider, which can lead to double billing or obvious conflicts of interest.

Broker Verification Checklist [Downloadable PDF]

To help you see things more clearly, here’s a visual checklist of the essential points to check before committing to an energy broker. You can also download it in PDF format so you always have it handy.

What to do in case of a scam?

If you think you’ve been victimized by a dishonest energy broker, don’t stand by and do nothing. There are avenues available to defend yourself and assert your rights.

1. Gather all evidence: Contract, emails, invoices, phone records… anything that can document your interactions with the broker.
2. Contact the broker’s and supplier’s customer service: First, attempt an amicable resolution by registered letter with acknowledgment of receipt. Clearly explain the dispute and what you expect (contract cancellation, refund, etc.).
3. Contact the National Energy Ombudsman: If the amicable approach fails, you can contact the National Energy Ombudsman free of charge. This is an independent public body that will help you find a solution [3].
4. Report the fraud to the DGCCRF: It is crucial to report these practices on the government’s SignalConso platform. This allows the authorities to launch investigations and sanction fraudulent companies. Your report can help other consumers avoid falling into the same trap.

Complaint letter template

Download the complaint letter template:

Certified brokers to favor

Faced with the jungle of energy brokerage, it is essential to turn to professionals recognized for their reliability and ethics. A good practice is to check whether the broker is a member of the Energy Brokers Union (SCE). This union imposes a strict code of ethics on its members, guaranteeing the transparency of offers and consumer protection.

Here is a non-exhaustive list of brokers who are members of the SCE, who are a safer choice for managing your energy contracts:

Mail	Website
Capitole Energy	capitole-energie.com
Dune Energy	dune-energie.fr
The Energy Lab	lab-energies.fr
Omnegy	omnegy.fr
Only NRJ	onlynrj.fr
Opera Energy	opera-energie.com
Optima Energy	optima-energie.fr
Energy Square	placedesenergies.com
Premium Energies	premium-energies.fr

This list is based on SCE members as of the date of publication of this article and is subject to change.

FAQ

Finally, here are the answers to the most frequently asked questions about energy broker scams.