Hotel gets "shocking" energy bill

The hotel has now been offered a 25% reduction in its bill

A family-run hotel in Devon is facing an electricity bill of £67,500 after its energy company said it had been undercharging it since 2004.

The owners of the Soar Mill Cove Hotel in Salcombe said they were in a "state of shock" when they received the bill.

The energy supplier EDF said the problem had arisen because it was billing for the estimated, rather than the actual, amount of energy used.

The company has offered the hotel a 25% reduction in the bill.

Hotel owner Keith Makepeace said: "We were in a state of shock.

Everything seems to be in favour of large utilities at the expense of small struggling businesses Keith Makepeace, hotel owner

"We have written to EDF asking them to explain when this first went wrong and the details of all the readings since that point.

"Surely there must have been a point when it went from right to wrong?

"Everything seems to be in favour of large utilities at the expense of struggling small businesses."

In a statement EDF said: "Unfortunately, estimates were used, at around 35-40 units a day, when the reality has been that an average of 500 units have been used a day since [2004].

"[This is] for a business premises which includes a constantly heated indoor pool, Swedish sauna, ocean spa, beauty and treatment salon, restaurant, coffee bar plus 22 en-suite hotel rooms and suites."

"We have been out to check and the meter is working fine but because estimates have been used to calculate bills, a significant amount of electricity has been used but not paid for."

'Dials' problem

A spokesman said Mr Makepeace had been written to and asked to take a meter reading on "at least four occasions" but had not responded, which is why the bill had carried on being estimated. This is denied by the hotel owner.

"They [EDF] were coming and taking readings," Mr Makepeace told BBC News.

"I think they use sub-contractors, but they're the one who've read the meter and that's why I'm questioning this."

Mr Makepeace says his meter has five large dials and a sixth smaller dial below the others. He believes the problem may stem from that.

"It's possible they haven't been reading the meter correctly, but I don't think that's my problem," he said.

"If I was to criticise myself, I'd say maybe I should've realised the bills should have been higher, but we've been paying between £1,500 and £2,000 a quarter."

Information requested

The company says it is waiting to hear whether Mr Makepeace will accept their offer of a 25% reduction in the bill, to be paid over a "suitable" repayment period.

However, Mr Makepeace says he still has not received a reply from EDF in response to his request for information about the readings.

"The time for negotiations will be if and when it's proved I owe that amount," he said.

The case follows that of small Cornish pasty company, Barnett Fare, which received an unexpected electricity bill for £40,500 from its energy supplier E.on.

E.on has apologised for undercharging and has offered to reduce their bill by 25%.