Small Business Being Overcharged for Electricity - Please help!

leahrhickey

Hi all, I'm new to this so please forgive me if I make any mistakes.
I am a young person renting a studio unit with my partner in central Birmingham. We are in the process of growing a small business and as we have not yet made profits, we are granted Small Business Rates Relief. We pay £420 pcm for our 900 sq ft unit, not including utilities. As we both work full time, we only operate at our studio after 5pm on weekdays (two or three times a month, time permitting) staying no later than 10pm, or during daytime (9am - 6pm) at weekends.
Prior to moving in during September 2020, our electricity metre read '107890' on August 21st 2020.
A month into our stay we received an electricity bill from e-on, advising of a £40 fee for our first month which I paid immediately.
As of 26th May 2021, our meter reads '109028'.
At the end of April 2021, e-on sent us a letter to notify us that our payment was overdue. We have received one or two letters before, but having spoken to others around the building we were left with the impression that we were being grossly overcharged. My parents have no experience with this problem, so I am struggling with how to solve this problem myself.
The letter from e-on advises we have an outstanding payment of £1,143.39. When I have read through the letter, each monthly energy charge is listed as an 'Estimated Reading', with a charge of 79p per day.
What do I do - are we being overcharged? If so, how do I contest this? All we want to do is pay a fair amount from the time we have spent in the unit and switch suppliers as quickly as possible. We have the money to pay this outright, but I don't want to do so if we are being mislead.
Thank you everyone for reading and helping us out.

kazwookie

What is the actual reading?

What is the reading on the bill?

I would ring them up with the actual reading and ask for an adjusted bill, also ask if you are on the best tariff.

[Deleted User]

Hi,

have you been providing regular meter readings?

How does the meter reading today compare to the estimate?

JJ_Egan

Its a business to business transaction determined by the terms and conditions .

What terms and costs did you agree to

Gerry1

Welcome to the forum.

You need to submit meter readings monthly to get rid of the estimated bills problem.

Unfortunately this is a domestic forum, not a business one.  Rightly or wrongly, business users are assumed to be clued up, so the Ts &Cs can be more onerous, there is less protection, costs are higher and VAT is 20% not 5%.

Do some meter sanity tests, switch everything of yours off and make sure the red LED (marked 1000 Imp/kWh or similar) never flashes, then switch everything on and make sure it's flashing crazily.  Make sure you're not supplying anyone else, think in kWh and check what the rate is.

You may not even be able to switch if you are locked into a tough contract.  Caveat Emptor !

Hasbeen

You need to look at your contract.
Business usage is expensive

You should be sending actual readings every month, not relying on estimates.

Can you post a photo of your bill with personal info redacted?

Robin9

@leahrhickey  This is a business contract and it is not like the domestic market - you cannot simply switch.  Assuming you signed a 12 month contract the supplier will write to you a month before the anniversary date and you can then take out a contract with another supplier - ring around them, don't use brokers and you must write to say you are not renewing.

By 79 p a day I presume you mean Standing Charge - that's typical of business/commercial tariffs.  They vary a lot I am paying 35p a day and 15p a unit for electricity (gas is horrendous at £3.68 a day)

You say the meter reads 109028 - give that reading to your supplier and get an up to date bill. 
Just a thought  - such a high meter reading (unless the meter is very old) suggests  that there is a heavy electrical load there of some description.

A copy of the bill - blanking out the personal info, address and MPAN would help. Also a photo of the meter.

QrizB

leahrhickey said:

Hi all, I'm new to this so please forgive me if I make any mistakes.
I am a young person renting a studio unit with my partner in central Birmingham. We are in the process of growing a small business ...
Prior to moving in during September 2020, our electricity metre read '107890' on August 21st 2020.
As of 26th May 2021, our meter reads '109028'.

The letter from e-on advises we have an outstanding payment of £1,143.39. When I have read through the letter, each monthly energy charge is listed as an 'Estimated Reading', with a charge of 79p per day.

What is your business, are you artisan plate-decorators or are you running a bronze foundry? Your electricity demand will depend on what you are using it for.

In 278 days your meter has racked up 1138kWh, and at 79ppd you've incurred a standing charge of £219.62. Your supplier is charging you £923.77 for electricity which sounds to me as though they have estimated a much higher consumption (either that or you're on a tariff of around 80p/kWh). My sums could be slightly out depending on whether the £1143 and/or 79p include VAT, or not.

Robin9

And there's CCL charges and VAT at 20%  on Business Tariffs

MWT

Business or domestic the same basic rule applies, make sure your bills are using actual readings not estimates ...

btr30

If the meter readings you quote are actual readings then the consumption used between September and May 26 is 1138 KWh.
If unit cost is 15p/KWh that would be £170 consumption charge. (This can be adjusted as per actual unit cost on your account)
Your daily charge of 79p equates to approx £216 for the nine month period.
As your consumption falls below diminis, it will attract a VAT rate of 5%

Therefore total charges due for electricity over this period will be in the region of £405.

It may be that you are being chased for debt accrued prior to you taking over the property.
I would suggest contacting EON to confirm the period of occupancy and correct meter readings for these dates are applied to the system, and this should produce a new bill for around this, less payments already made.