Pub operator Kheng in dispute with PPL

Dispute: Kheng is contesting charges made by PPL

A multiple pub operator has entered a legal dispute with music royalties company PPL over refunds relating to one of his premises which closed on 1 January 2011.

Michael Kheng, who runs a number of pubs in Lincolnshire, described PPL’s refusal to issue a refund on charges issued for events at Kai’s Bar in Louth as “crazy”.

Whilst PPL has credited Kheng for the month of September as a “goodwill gesture”, they explained that Kheng had informed them too late of Kai’s Bar’s closure for a full refund to be given. Kheng sold the freehold of Kai’s to JD Wetherspoon in February 2011.

The original invoice was for 52 Friday occasions and 52 Saturday occasions plus five Sunday occasions, making a total of 109 occasions at £26.57 totalling £2,896.13 covering the period 1 October 2010 to 30 September 2011 which was invoiced in August 2010 and subsequently paid.

Kheng believes that he has overpaid for 80 occasions totalling £2,125.60 and is requesting a further credit note for £1,875.67.

PPL asked that Kheng pay a balance of £717.19 by 30 September, but he has now passed the matter to his legal department to deal with.

“They charge in advance based on what you are going to do in a year which is crazy,” said Kheng. “For example if you pay in advance for two DJ performances per weekend and then decide to only use one, you will not get credited.

“In any other industry if you are charged in advance for something, then you don’t use it, you get a refund. For example if you pay for electricity usage in advance but don’t use it, you will get your money back.

“It just really worries me that when these new fees come in, people are not going to get a refund. The new fees they (PPL) are proposing means the cash flow effect on companies is going to be massive.”

A PPL spokesperson said: “We are in ongoing private discussions with Mr Kheng and cannot comment further at this stage. In regard to proposed new tariffs we stress that this is a consultation document at this stage and we will assess the responses when the deadline closes on 14 October.”