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Q&A

Q&A

their suppliers as soon as possible and, if necessary, issue a formal complaint.”

If both parties are unable to reach an agreement, businesses can take their case to the Energy Ombudsman eight weeks after first making a complaint.

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What if businesses have a direct debit with their supplier? Should they cancel this to avoid payments being taken while bills are still in dispute?

Be careful, Martin says. “When your bills are in dispute, it’s important to seek clarity from your energy suppliers on how your direct debit will work out. Cancelling a direct debit without discussing it with your supplier risks being disconnected. This comes with a disconnection fee as well as charges to be reconnected in future.

“Currently, small firms can be disconnected if bills are not settled after 30 days. However, we have written to energy suppliers and urged them to pledge not to disconnect any small business customers struggling with bills.” retailers tell of payment plans being denied outright by their energy suppliers, or of enormous (and often erroneous) totals being taken by direct debit while still in dispute, throwing carefully controlled budgets into disarray.

So what should businesses do if they believe their bill is unreasonably high, or if they simply can’t afford to pay? I asked Martin McTague, national chair of the Federation of Small Businesses.

Martin says: “Small firms unable to afford their energy bills should talk to their suppliers as soon as possible and discuss a payment plan. They can also seek advice from Citizens Advice Consumer Helpline or Business Debtline.” (I can attest to the amazing service from Citizens Advice, which has provided advice on a range of issues affecting our business over the years, from dealing with dodgy suppliers to energy bills; the online chat service is especially helpful if you don’t have time to sit on hold on the phone.)

He adds: “Businesses who think they have been overcharged should contact

Martin and the FSB are also lobbying energy suppliers to introduce “time to pay” arrangements for businesses, but any results here may not come in time to help businesses that are affected now. If you’re really struggling to pay your energy bill and need short-term financial help, consider approaching your bank for a loan or overdraft, or applying for a credit scheme such as Funding Circle’s Flexipay. It offers a line of credit to cover purchases, bills and other costs, and then allows businesses to spread the repayment over several months.

The bottom line is, high energy bills aren’t going away anytime soon, alas, so reach out. Talk to your suppliers. Seek advice and support. And if all else fails, make yourself feel a little bit better by firing off an exasperated tweet or two. Hey, it worked for me.

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