A licensee in Cornwall has reached an out-of-court settlement with energy company Opus to pay electricity bills worth over £14,000.
Gary McNaughton, Trust Inns tenant of the New Inn, Goonhavern, said he was left with no choice but to accept the settlement after Opus told him they would demand £30,000, payable over two weeks, if he lost the case.
In January The Publican's Morning Advertiser reported how McNaughton claimed he was "grossly mis-sold" his contract in 2004 as he was led to believe it would last one year at £319 per month. He was tied into four years and his monthly bill rose to £2,200 in January 2009 as he was put on a "rollover contract" when Opus block-ed a bid to switch supplier.
Magistrates rejected two attempts by Opus to have the electricity supply disconnected before McNaughton was sent a county court claim from the energy supplier for £22,331 in unpaid bills and legal costs. He has paid Opus £7,822 since the rollover contract began.
Now, in a settlement thrashed out between the barristers of both parties, McNaughton will pay the remaining £14,509 over a three-year period.
"I have been put in a no-win situation," said McNaughton.
He added: "With the costs, I was told that I would owe them (Opus) £30k in two weeks unless we reached an agreement. I couldn't take the risk. The business would have gone down. There is a 50/50 chance I could have won (the case) but it has taken me seven years to build up this business so I simply couldn't take the chance."
An Opus Energy spokesman said: "Although Mr McNaughton and Opus have settled this matter, we do not accept that any error was made.
"It is a shame this matter came to court, particularly as we offered independent mediation in an effort to resolve it amicably. We are pleased to draw a line under this."