Businesses Warned Over Possibility of Backdated Energy Bills

Government energy watchdog Consumer Focus has issued a warning to small businesses about the possibility of unexpected energy bills from suppliers landing on their doormats.  These bills could detail arrears owed as a result of years of undercharging.

It is possible for energy companies to backdate energy bills for up to six years for commercial customers and up to one year only for domestic customers, even if the mistake is that of the supplier.

Consumer Focus has asked energy companies to extend the domestic scheme to small businesses and to exercise discretion in negotiating the terms of re-payment.

If a business receives a bill - and it cannot pay in full or immediately, it is advised to contact the supplier straight away in order to try to negotiate a settlement. Otherwise, it is possible that electricity, gas and water supplies may be disconnected from commercial premises. Business owners should also be aware that amounts owed for water or telephone bills can be set off against personal accounts with the same suppliers.

If you have any questions or would like some advice contact our Dispute Resolution team.