Double billing can occur when changing energy supplier and involves both the new and old supplier charging for energy usage in the overlap between the end of one contract and the beginning of another. In short, the user is paying for the same energy twice.

One of the major causes of this are incorrectly processed meter readings where the new supplier makes an estimate of usage but the old supplier, for whatever reason, does not receive them or does not process them correctly. This can lead to a final account figure missing on the old supplier’s system and therefore the old supplier will keep billing the customer until a final official reading has been logged in the system from the new supplier.

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Smart Metering is in the news today and the BBC have produced an overview of how a smart meter works in addition to their discussion on how much you can save with a smart meter. Whilst these refer to the domestic market, there is significant relevance for the business market also.

It’s a familiar story; if you can’t measure it or see it, it can be hard to do anything about it. It seems unlikely that energy prices will reduce over time, and this combined with the focus on Carbon Reduction Commitment for all, should make this a very real issue for most businesses.

Empirical research suggests that simply monitoring consumption, improves awareness and typically consumption will fall. Thus at the most basic level smart metering will help. What Smart metering will do above and beyond the basics for business is provide, up to date accurate information about their consumption.
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Following a recent investigation, Ofgem has released a new set of guidelines for implementation this autumn designed to protect small businesses by increasing transparency in contracts and agreements with energy brokers and advisors. This will reduce many of the problems faced by small businesses in negotiating deals and clarity on knowing what rights they have as a business energy consumer therefore reducing the number of complaints and hours spent resolving disputes. These changes include:
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Make sure you read those Terms & Conditions or at least make sure that whoever is arranging your energy contracts ascertains exactly what is being signed. Whilst there are significant government backed efforts to support the pressures on Businesses at the moment, not everyone is being quite so supportive. Apparently the notion of ‘Limited Company’ status doesn’t wash with business energy supplier Scottish Power.

the director who signs the Agreement on your behalf…shall irrevocably and unconditionally be jointly and severally liable for any and all payments…’ so make sure the business pays those bills!

Even if the business is paying the bills, there are potentially draconian additional requirements.

at our (Scottish Power) sole discretion we may also require the said director within 7 days of request, to provide us with a personal guarantee…for an amount no greater than an amount equal to the previous quarter’s usage.

Let’s hope your energy costs aren’t large.