Restaurant owner hit with £200 daily energy charge after being caught up in regulation change

16 August 2022 by
Restaurant owner hit with £200 daily energy charge after being caught up in regulation change

The owner of a 55-cover restaurant is facing an additional energy charge of £200 a day after her attempt to change suppliers was caught up in regulation changes.

Denise Dodman, director of the Carrington Arms in Milton Keynes, said her failed bid to switch suppliers had seen her moved on to a variable price plan, wiping out the business' profit margin.

She had tried to change providers on 20 July, which fell in a four-day period (18 – 22 July) when switches were put on hold due to the introduction of Ofgem's Centralised Switching Service.

The service is intended to speed up the switching process ensuring a change in supplier occurs within five working days. However, for Dobman it meant her switch was not actioned and left her drifting into a variable plan.

She said: "At the moment I am being charged a variable rate because I am out of contract. Nobody told me anything about this. It's not right that the customer should be paying for an industry problem that is completely out of my control."

The restaurant owner has filed complaints to both her existing and new supplier, both which sit under Centra, as well as Ofgem, which has led to her current supplier pausing direct debit payments until the dispute is resolved.

However, she is still required to pay the additional fees during this time, which means that her 55 cover restaurant will be "running at a loss until the transfer is completed", which she has been told could take up to 10 working days.

She added: "I am losing sleep over something that is outside my control, particularly when I've got no date as to when the switch might happen."

The renewal offer was already a 60% increase in price from her previous rate and Dodman expects her electricity bills to reach a minimum of £72,000 a year.

She added: "As everybody knows, prices for supplies and costs are going up all the time and this is just another cost that we cannot bear. Our wages have gone up 25% to 30% because nationwide there's a shortage of hospitality [staff]. Customers will only pay so much, so we keep putting up our prices a little bit. That's why I say this electricity [situation] is like a nail in the coffin. It's a real struggle."

The Caterer has contacted Centra (British Gas) and Ofgem for comment.

Continue reading

You need to be a premium member to view this. Subscribe from just 99p per week.

Already subscribed?

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking