Trapped in energy contract - massive commercial supply for tiny business

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Laundrylady

New Member
Dec 14, 2024
2
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Very long story. My daughter signed a lease on her first shop which was 1/3 of a larger unit that used to be a McColls supermarket. 2 of the units owned by one landlord and the 3rd we rent by a different landlord. Our landlord has put a breeze block wall back up and we have rented the space.
Shoot forward we had no idea the problems this would cause. Firstly and mainly our unit has the power for the entire 3 units and having done all our sums on her business not for one minute did we imagine we would inherit an enormous electricity disaster
My daughter cleans shoes as a business her electricity usage is approx £100 a month but with the previous tenant having stored power and half hour meter we are paying 20.20 per day standing charge and huge unit charges as they seem our usage not enough to offer a contract. We are essentially not in contract. Our bills are £1000 a month for £100 actual usage of power.
We have paid for months but simply can’t anymore. The only way to stop the supply is to pay 5000 we don’t have to have it cut off by the grid.
We have now stopped using any power and are running her usage from my premises next door - stupidly I thought we would call and pay the final bill and that’s that but no - n power need a name to move supply too - our landlord suggested we give the details of the landlords of the other units not his! We will remain tenants but close the company and she will trade as a sole trader - this was our landlords suggestion. Whoever’s we give we are apparently responsible for the standing charges until
Someone else takes over and agrees it’s their bill.
We have no choice but to wind up the company which the energy bills are billing and is a limited company - I know this won’t guarantee us they won’t come after my daughter privately but it’s a start
Anyone any other suggestions or does anything think we have any comeback on our landlord who should surly have told us as a tiny “one woman” business the building we are about to rent from him on a ten year lease is trapped paying energy to supply an entire supermarket - he said nothing at all we had no idea just expected it would be a usual meter like the one we have in our other business with acceptable costs per month.
Similarly because the landlord didn’t separate the buildings formally we are also being chased for business rates where we should be getting small business rate relief - this landlord seems to have really conned us!
Thinking if we apply to shut business on companies house but keep paying the bills until then they won’t be able to object as we won’t have debt with them - we are not in contract as they won’t give us one - we are using no energy?
Sorry for the very long post has anyone ever experienced anything like this?
 
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Lisa Thomas

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Apr 20, 2015
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I'm a little confused.

Can you summarise your daughters position separately please as this post is hurting my head a bit, and I am lost.

Who provides your daughter's business with electricity?

Is that her landlord, or does she have an energy contract direct with an energy supplier?

Are you asking for advice for your business, your daughter's business or both?
 
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Laundrylady

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Dec 14, 2024
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I'm a little confused.

Can you summarise your daughters position separately please as this post is hurting my head a bit, and I am lost.

Who provides your daughter's business with electricity?

Is that her landlord, or does she have an energy contract direct with an energy supplier?

Are you asking for advice for your business, your daughter's business or both?
Apologies it is confusing - she has her own lease in the adjoining building to mine.
She isn’t in contract as no one will give us a contract but her supplier is npower business
When she signed the lease we didn’t think to ask anything about the power just assumed it would be as per my unit next door but it’s not is a huge commercial supply.
Our usage is too small in commercial energy world for anyone to offer us a contract so rates through roof and unless we pay 5k to terminate at the front door we have to keep paying
We have now run her supply into my adjoining shop so her usage will cease but we are still liable for 20.20 plus VAT A day standing charge plus other charges.
I feel like her landlord has handed us an poison chalice- no tiny business could ever cope with this and yes maybe we were daft not asking but we made a fair assumption the energy would be same as my adjoining shop
Any way long story short her landlord isn’t offering any help other than suggesting we move the bills into the name of a 3rd landlord!
I guess my question was - does anyone think we have any come back to the landlord for not informing us?
My daughter will be closing her business on companies house and hoping any costs incurred from once it’s closed won’t chase her!
It is very complicated
 
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Lisa Thomas

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Apr 20, 2015
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I'm still confused. Can we leave you out of it for the moment.

So, your daughter has a lease for a unit.

The lease/landlord does not include/provide any utilities which is quite common.

You mentioned she gets her energy from NPower so does she not have a contract with them?
 
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fisicx

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Sep 12, 2006
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@Laundrylady - this is very confusing. You make it sound like she is paying the energy bill for the whole building. If this is the case, what does it say on the lease? What did her solicitor say about the energy clause in the lease? If she doesn't have a contract with npower - how is she paying the bills?
 
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Have I got this right?

Daughter leased a unit, it turns out to have a half hourly meter, as this is the orignal meter for the larger shop.

As it is a half hourly meter, the standing charge is very high @ £20 per day.

Unit rates will be slightly cheaper.

She is currently using an extension lead to get power for the adjoining unit.

Leaving her still paying the standing charges.

The business is not viable and is a limited company it can close, ending the supply contract and lease.

So your daughter will need to find a new unit.

The supply will go back to whoever the landlord is. Not sure about the bit suggesting using a different landlord - the landlord is a matter of fact, not opinion.

There is also an issue with the business rates?



Did your daughter give any personal guarantees?

Who reviewed the lease? The utilities and business rates should be covered by this.

Her liability to Npower will end when the company closes and/or the lease ends, as long as she notifies Npower correctly.

 
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Wayne Mitchell

New Member
Mar 2, 2025
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Is this sorted now? I’m an energy consultant and the situation you describe isn’t uncommon. You should really have a sub meter for the other units and charge them for the electricity they’re using.

The liability for the supply is the address where the meter resides. The landlord should have helped with this.

You could approach the other units and tell them you’re going to have the supply disconnected unless they start to contribute their share of the bills.

Anyway, is it sorted?
 
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