“The era of cheap energy is over”, said business secretary John Hutton last week. Following the revelation that the average household can expect utility bills worth £1,300 this year, he’s not kidding. Making sure your staff are turning off electrical appliances at night has never been more important.
As of this weekend, all of the ‘big six’ energy companies have significantly increased their prices this year, blaming rising wholesale fuel costs. In the latest round of price hikes, Scottish Power said its gas bills would rise by 34%, with electricity prices up 9% as from yesterday, while NPower increased its gas bills by 26% and electricity by 14%.
But as you brace yourselves for the added cost, it's worth taking a moment to double check how much you're paying already, and how your supplier is figuring this out. Just ask Julia Barnett. Last month, her family-run Cornish pasty business Barnett Fare was hit with a £40,000 bill from power giant EON, who uncovered a “slight problem” with the billing – they had been undercharging her since 2001.
According to The Times, EON has offered Julia a 25% discount if she can pay off £30,000 over two years, or she’ll have to pay the full amount over five years. We suspect this offer has done little to soften the blow. It still amounts to a hefty dent in profits, on top of her increased annual bills. The tab equates to 8p for every pasty the business has ever sold.
As the price of gas and oil increases, the power companies will be looking more carefully at their billing processes and to recoup any losses, and you’d be well advised to do the same. While you can't always do much about other people's cock-ups, by taking a closer look at your energy bills and double checking how much you're being charged you might just avoid a nasty surprise. You never know, if your meter readings are being estimated they might even owe you money.
Cover your back by making sure your bills are based on actual meter readings rather than estimations, and if you’re paying off a set amount by direct debit each month or quarter, review it to make sure you’re not left with a whopping great big balance at the end of the year. Don't rely on the power companies to get it right - take matters into your own hands.