Pasty power bill hard to swallow

The family-run firm makes about 2,000 pasties a day

A "minor billing problem" has turned into a major nightmare for a couple who run a small Cornish pasty firm.

Two days after getting a phone call from energy provider E.on, a bill for £40,500 landed on Julia and David Barnett's doorstep.

The couple, who employ eight people at their Bodmin pasty plant, were told they had been undercharged since 2001.

E.on has since apologised and offered to reduce the bill by 25%. The Barnetts are considering whether to agree to it.

Mrs Barnett said she and her husband had contacted E.on on a number of occasions since setting up their business in 2001 because they were concerned they were being undercharged.

We're really not trying to be awkward, but it's a lot of money for a small business Julia Barnett

"Every time we questioned it, E.on insisted the bills were correct," she told BBC News.

"When the bill arrived, we thought it was a bit of a joke at first, but they said it was definitely right and we had to pay it."

E.on told the couple the error was caused by misreading the opening meter reading.

"It's a disgrace they can go back that far and put us in this position," she said.

"Morally, they should wipe the bill out - it's their error."

Meter investigation

Barnett Fare makes about 2,000 pasties a day. The couple say covering the cost of the bill could mean having to raise their prices, which would make them less competitive in the current difficult economic climate.

In a statement, E.on said: "The bills for Barnett Fare are correct, however we recognise that this account has been underestimated for some time because the meter readings being collected appeared to be too high and were rejected by the system.

"We have apologised to Mrs Barnett for allowing a balance to build up."

Following a meeting with the Barnetts Eon has now verbally offered them a 25% discount, reducing the bill to about £25,000, to be paid back over six years.

Mrs Barnett said she and her husband would not agree to anything until they had seen the offer in writing.

"We're really not trying to be awkward, but it's still a lot of money for a small business," she said.