Firms forced to close ‘still face massive power bills’

HUNDREDS of businesses ‘blindsided’ by energy use agreements may be forced to pay thousands of pounds for electricity at sites they have not been able to use because of the pandemic.

The 40 members of an energy-buying collective run by the Co-op would have had to shell out £1million between them so far, based on previous contracts with suppliers, the retailer calculates.

Co-op Power said it always follows a ‘no take no pay’ policy when negotiating deals for members.

But it said clauses setting out what will happen if power is not needed are usually buried in the ‘very small print’ of long-term deals signed by companies.

Co-op boss Steve Murrells said: ‘Being blindsided by unexpected costs from an energy provider at such a critical time could be the breaking of a business, putting our high streets and the communities they serve at further risk.’

Co-op Power managing director David Roberts added: ‘The actual charges for unused energy are rarely made clear to the client as they receive their invoice.

‘The costs might appear discreetly, be hidden within other charges or not be itemised out. So, a business could be paying for unused energy without even realising it.’

Co-op Power, which is the UK’s largest co-operative energy buying group, is holding its first major recruitment drive since it was set up in 2003.

It says its members have a collective buying power of £200million a year – which secures greater value – and can share renewable electricity.