Small Business Gas & Electricity Discussion Area

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  • Flyingfemme
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    I have a small business that uses electricity and is supplied by British Gas with a smart meter. The meter was inherited when we bought our property and the previous owner was a huge conglomerate - which may have affected the classification of this meter.
    In 2016 the government decreed that all "large user" classifications of meter had to be moved to a single type of user and all these users would have to go onto half hourly billing. We were caught in this net - despite being everything that the goverment defines as a microbusiness and qualifying for simpler rates and bills.
    Large users negotiate their prices with the supplier but we are unable to do this since no supplier will waste their time with an account that totals around a thousand pounds a year!
    I went to Ofgem to try and find out how to get our meter and account reclassified but, eventually, was told to get lost because there was nothing they could do for me. The supplier blames the network operator and the network operator blames the supplier. Meanwhile my fixed price contract came to an end............without the muscle to negotiate a decent rate I have seen my standing charge go from 26p to 95p per day while the individual unit rates have gone double (in the summer) or quadruple (in the winter).
    Where does one go after Ofgem? What are other small businesses paying for electricity?
  • koru
    koru Posts: 1,504 Forumite
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    What are other small businesses paying for electricity?
    For electric we pay 23p standing charge and 11p per kWh. We use about 6000 kWh per year. (Opus 12m fixed rate)
    koru
  • koru
    koru Posts: 1,504 Forumite
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    Where does one go after Ofgem?
    Maybe try one of the energy brokers, who might have more experience of how to get the classification changed. Business Juice claims to provide an ongoing service, rather than just finding the cheapest deal for you.
    koru
  • Sandybanks
    Sandybanks Posts: 88 Forumite
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    I have a small business that uses electricity and is supplied by British Gas with a smart meter. The meter was inherited when we bought our property and the previous owner was a huge conglomerate - which may have affected the classification of this meter.QUOTE]

    Firstly if you have more than one meter on the property or maybe you have 2 properties you can sign yourself up to the Ecoes electricity site register and see what the meter is recorded as.
    Secondly, having dealt with British Gas several times they are not the best at sorting problems but you will get a response from the chief executive. Ask them for a copy of their current terms and conditions and I think you will find that if you fall into the classification as a micro business they have to treat you as one. Keep writing to the chief executive until he sorts your problem and demand a refund for the over charging. Don't waste your time with anyone lower in the company.
    Its your supplier who changes the classification, Extra Energy changed 2 of my meter classifications without telling me.

    Change to either a small supplier with a very high reputation for customer service or a larger company that in your area is both supplier and generator like Eon. As said dont go for the cheapest if you have problems to solve.
    British gas prices for a contract stated last year, including the 6% direct discount were 10.77p unit & 22.94p standing. 12,000kwh.
    If you have a low usage be aware of the 5% v 20% vat and the climate levy.
  • SJT73
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    Evening All - looking for some advice. In June 17 a new electricity contract was agreed for 3 commercial premises via a broker. They offered a fixed contract and a pass thru contract. The broker quoted our apparent new fixed rates from our current supplier which turned out to be considerably more expensive than that actually quoted direct from the supplier. The pass thru contract day/night rates were much more competitive but I'd prefer not to talk about the non-commodity costs!! Therefore the first question is; can a broker offer day/night rates which are considerably more than the actual supplier - is this legitimate dealings or could it be considered mis-selling? The supplier has supplied with me the full illustration for the pass thru (the one I went with) which they supplied to the broker. I now want to ask for the illustration of the fixed product provided to the supplier - do they have to supply this or can they refuse? All this said, we have now just sold two of the buildings and are about to sell the 3rd - would we be able to do a CoT for these 3 buildings which in turn would mean we would be able to change suppliers? Any advise on any of the above would be very much appreciated.
  • anniecave
    anniecave Posts: 2,442 Forumite
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    SJT73 wrote: »
    ......

    All this said, we have now just sold two of the buildings and are about to sell the 3rd - would we be able to do a CoT for these 3 buildings which in turn would mean we would be able to change suppliers? Any advise on any of the above would be very much appreciated.

    I'm not sure of your first questions. However if you have legitimately sold any or all of the properties to an unrelated party with no ongoing relationship to the properties (you won't continue to be a tenant for example) then certainly COT (if you mean change of tenancy) or COO (change of occupancy as some suppliers refer to it) applies and your contact with any energy supplier would end. If you have a contract directly with a broker rather than a supplier you'd need to check the details of that contract. If you are continuing to be a tenant at the property then COT or COO wouldn't apply.
    Indecision is the key to flexibility :)
  • SJT73
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    Thank you Anniecave. A little more advice would appreciated. We have legimately sold the 3 buildings to an unrelated party. All buildings are multi tenanted however we have never ever actually occupied two of the buildings whereas in one of the buildings we will technically remain, however the company will no longer have any responsibilities and a new lease will be put in place with another company who will subsequently take over responsibility. In this circumstance would a CoT still be possible?
  • spartanmk
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    Hello, I am new to this but looking for some advice. My girlfriend received a phone call from a broker yesterday regarding her new small business and has now found herself roped into a 5 year contract with BES Utilities. She did tell them 5 years did not suit but she was told it was ok as she could cancel whenever she wanted. I am looking for some help/advice as to where she stands in relation to cancelling the contract as it was only yesterday is there a cooling off period?

    Any replies would be appreciated.
  • Savvy_Sue
    Savvy_Sue Posts: 46,074 Forumite
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    B2B contracts do not usually have a cooling off period. Has she read the contract? What does that say about cancellation?
    Signature removed for peace of mind
  • spartanmk
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    It basically just says there is penalty charges which on looking at will probably be very excessive. she never agreed a start date on the phone with them however they have put a start date of 23rd March 2018.

    also on the contract the term says ("60 months from the supply start date (to be confirmed in writing when finalised")
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