Are Small Businesses Being Hit By Unfair Energy Bills?

New figures show that small businesses are being unfairly overcharged for their gas and electricity consumption. With all businesses struggling and utility costs rising do you think action is needed to protect small businesses from shock bills?

Last year Consumer Direct claim that their helpline received 1,848 complaints from micro-businesses who were lumped with unexpected bills after their energy charges were underestimated.

With average businesses spending up to £10,350 a year on gas and electricity, mistakes can quickly add up, resulting in companies being hit with back-dated bills for thousands of pounds.

Audrey Gallacher, Head of Energy at Consumer Focus, said that small businesses need all the help they can get in these difficult times if they are to help drive the economic growth we need.

“Getting a bill for thousands of pounds out of the blue is a nightmare scenario for any small business, especially in these difficult times,” he says.

“With suppliers able to go back six years, supplier mistakes can add up to big debts that could potentially cripple some firms.”

Energy back billing of companies is a very contentious issue, which differs quite considerably to the domestic energy market where companies can only back bill for one year.

David Caro, Federation of Small Businesses Environment and Energy Policy Chairman believes that despite small businesses using energy in much the same way as a domestic user, they do not have the same protection.

“There is a need for a radical shake-up of the practice of estimated billing, especially when the energy suppliers are in the wrong,” he says.

“A large unexpected energy bill, particularly in these difficult trading times, can be as serious as the last nail in the coffin for a small firm, which is then forced out of business through no fault of its own.”

Energy consumption and billing can have a detrimental effect to your business and it’s profitability – have you had a dispute with your energy supplier in recent years? Have you been unfairly ‘back billed?’