BES Utilities: The Steel Cauldron cafe in Sheffield wins fight to switch energy firm over 'unaffordable' bills

Rob and Nikki Downham run The Steel Cauldron on Spooner Road in Broomhill, where youngsters can enjoy magic lessons, potion-making workshops and the chance to meet owls and reptiles, while there are cocktails and live music for the grown-ups. They have been with BES Utilities since they opened the venue in 2020 but said their monthly bill for gas and electricity had soared from around £380 when they joined to £4,500.

While they appreciate energy bills have gone up for everyone, they said what they have been paying recently is well above the market rate and ‘unaffordable’ for them and many other small businesses they say are tied in to long-term contracts with BES. Mr Downham said that when he compared BES’ rates with other providers, he found it was charging about 43p more per kWh for electricity, costing them some £14,000 a year, which he said is more than the business is currently making.

He said he had spoken to numerous other small businesses around the country who were also with BES and were faced with going under because they were paying too much and were unable to quit their contracts. When he called BES to complain, he says he was initially told that the firm recognised it was charging more than its competitors and was therefore allowing customers like him to leave their contracts early. But when he subsequently tried to switch supplier, he says this was blocked by BES, which told him the offer to leave early was a gesture of goodwill which had been withdrawn.

After The Star contacted BES, Mr Downham was told he would be released early from his contract, with the firm blaming a ‘mix-up’ for his move being blocked previously. But he said that since highlighting his concerns on social media, he had been ‘inundated’ with messages from other unhappy BES customers.

He said: “I’m delighted BES are now allowing us to leave early. However, there are hundreds and hundreds of other small business owners who are in identical situations to ours, many of whom have said they are still being told by BES that they cannot leave despite their bills being unaffordable.”

A spokesperson for BES said: “Mr Downham agreed to our electricity Market Traker product and has been supplied under this contract since April 2020. The product is designed to track wholesale and other costs and customer prices are reviewed every April and October, to ensure they reflect what is happening in the energy market.

“Unfortunately, global events beyond our control including the conflict in Ukraine have had a significant and well-publicised impact on wholesale energy prices, and we have had to pass this increase through to customers in line with the terms of their contract. Of course, we would much rather be reducing our customers prices and we have done in the past, on numerous occasions when costs have allowed us to do so.

“We are sensitive to the financial impact on our valued customers, including Mr Downham, and we have resolved his complaint by releasing him early from his contract without penalty, as requested.”