Energy brokers targeting "vulnerable" licensees

Related tags New tenants Public house Contract

New tenants have been warned to be on guard against energy brokers targeting them with 'special offers' on their first days in the job. According to...

New tenants have been warned to be on guard against energy brokers targeting them with 'special offers' on their first days in the job.

According to reports from the trade, sales teams are contacting pubs on changeover day and pushing publicans into signing deals that could be adding hundreds of pounds to their bills.

Stuart Bateman, managing director of Lincolnshire brewer Batemans, said he had come across "a couple of horror stories" in the estate.

"Tenants were getting locked into onerous tariffs that in one case was costing them an extra £1,500 a year. Others were caught by energy companies calling on the day of turnover in a new pub," he said.

"The thing that makes me sick is that it's legal. All we can do it make sure our tenants have the right contracts in place and get good advice."

Former headteacher Tony Godfrey, took over McMullen tenancy the Bull Inn at Redbourn, Hertfordshire, last July and by December £11,000 had been debited from his account for gas and electricity.

"We had to deal with a lot of calls from brokers and before I realised it I had talked my way into a verbal contract.

"If I'd known about these things before coming into the pub it would have saved a lot of money and worry," he said.

Both Batemans and Tony received help from energy consultant Pro-Eco with Tony eventually receiving a £1,900 rebate.

Mike Higham, of Pro-Eco, said: "I don't know how but they find out the date a tenancy changes hands and phone the licensee, who's often new to the industry, when they're busy and at their most vulnerable.

"They make it sound like they're offering the best deal. It isn't - but often we hear about it too late."

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