Pubs faced huge gas bill hike after cold call
A multiple operator faced gas bill hikes of up to 300% after agreeing to change supplier following a "cold call" from a utility agent that allegedly promised better rates.
The shocked operator - the Healy Group - made angry protests to the agent and the new supplier but Elf Business Energy refused to change the new tariff.
However, following the intervention of the Morning Advertiser, Elf backed down and agreed to negotiate new rates.
The episode is a stark lesson for licensees and operators to exercise great care before switching utility suppliers if contacted by agents, which are increasingly targeting pubs.
Gas bills at the Healy Group - which operates 16 leased
pubs in south east England - were to increase up to four-
fold at six sites after company partner Kevin Healy agreed a "verbal contract" with the Contract Advisory Group.
Marion Healy, Kevin's mother and another company partner, claimed the saleswoman told her son it could save the operator money on its gas bills.
Kevin gave the rep Healy Group's account details and she transferred supply at six of the pubs to Elf Business Energy.
But the statement from Elf said gas would cost a flat rate of 4.4p per kWh (a unit of energy) - up to four times the previous rate.
The average rise across the pubs was 150% and the contracts were for a full 48 months.
The biggest rise was at the Nags Head in West Drayton where bills were expected to increase by £1,100 a year.
The verbal agreement meant the contract was legally binding. Healy Group was sent a recording of the conversation as evidence.
However, after being contacted by the MA, Elf agreed to renegotiate the prices at each pub. Elf also said Healy Group can rejoin previous suppliers if they can't reach an agreement.
At the time of going to press Elf had agreed to cut the gas price at one Healy Group pub.
Marion admits that Kevin should not have given their account details but remains "very disheartened" by her treatment. "Their tactic is hard sell. I thought that if you don't sign anything it's not a contract - not so!"
Elf Business Energy declined to comment.
The MA contacted the Contract Advisory Group but received no reply.
To comment on this or any other story email us by clicking this link
