This is my attempt to keep an online log of my relationship with BES Utilities (BES Commercial Electricity, BES Commercial GAS) and how my business came to be stuck in a 4 year fixed rate energy contract with them at rates well above the market rates.
A lot of what I write reflects what is seen on iamOlly, this is a great website and I suggest everyone takes a look at it.
Here is a summarized time line of events.
Summer 2012
Myself and my business partner start our business, as soon as we plug in our telephone at our business property we start receive calls from so called “independent brokers” – we are getting roughly 3-5 a day, all offering the best rates on the market. Foolishly (in hindsight) my partner signs up with one who puts us on a contract with EON. A few days later we get another call from the same broker claiming that he found us an even better deal with BES Utilities. The broker rushes through the T&C on a bad line briefly skimming over the fact that this was a 4-year fixed rate contract. These brokers were very pushy
This broker was called National Utilities, they are longer in business.
October 2015
During a review of our bills and rates we notice that our energy bills are very expensive. We begin looking into our BES Utilities contract, its quickly become apparently that they are charging well above market rates (13.930kWh for electricity) and that even though we have been with them 3 years there is no way of getting out the contract as its for 4 years.
We call them and complain, they offer to reduce the rates by a tiny amount (it would take 10.00 off a 700.00 per month bill), if we enter into a further 5 year contract with them!
I begin researching BES Utilities; this doesn’t seem to be legit.
Late October 2015
During my research I came across Ofgem investigation into BES Utilities (BES to pay £980,000 for failures in customer service following Ofgem investigation) – great what was described in the settlement was exactly the situation we were in:
- BES failed to properly explain important contract terms to its customers Check
- Since the majority of BES’ customers signed up to four or five year contracts, these omissions were particularly serious. BES has agreed to repay termination fees and any standing charges to affected customers. BES will also get in touch with customers who have previously contacted them about their contracts and will allow them the option to end their contracts without paying termination fees Check
Great! I went back to BES highlighting this, I received a respond back from Joel Chapman (Head of Regulation & Compliance)
Good afternoon,
BES received your energy contract from National Utilities, which we believe was a trading name of Commercial Energy Ltd, which no longer trades. The address we previously held on file for Commercial Energy Ltd is Unit 7 Metropolitan Business Park, Preston New Road, Blackpool, FY3 9LT.
Your comments in relation to Ofgem’s investigation into BES and would refer you to our statement on this issue, a copy of which can be found here.
We have agreed with Ofgem that (subject to any changes made following the current period of public consultation) BES will make contact with, and offer to release without a termination fee, those customers who had previously raised a complaint about the principal contract terms which Ofgem found had not been explained in sufficient detail.
I note that you contacted us on 10 October 2015, requesting that we review your contract price with a view to reducing it. Prior that we had received no contact from you regarding any of the past breaches and, therefore, I confirm that your account is not eligible for early release as part of the settlement process agreed with Ofgem. That said, I note that, as a gesture of goodwill, we agreed with you a rate reduction following your contact on 26 October.
Best regards,
Joel Chapman
Head of Regulation & Compliance
BES Group
This is the point when I decided to start digging for more information around BES Utilities/National Utilities/Commercial Energy Limited in the coming days/weeks I will share my progress with you.
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