A THREE-MAN frozen-food business in Essex is facing insolvency after Npower, the energy utility, sent it a £38,580.30 electricity bill. Dennis Barbrook, owner of Rigby Frozen Foods in Maldon, said he was shocked when he received the letter from Npower in December.

The case is just one of many small-business owners who have been hit with exorbitant backdated bills from utilities. Npower, owned by German energy giant RWE, said the problem stemmed from faulty meters.

During the three-year period in question the company changed Barbrook’s meter three times. Npower first noticed a discrepancy in 2005, but didn’t inform Barbrook until two years later.

It offered to discount the amount to £27,000 but demanded he repay it within 28 days. Barbrook said: “We haven’t got the money. It represents 10% of our turnover. They are going to create an insolvency.”

Npower said it was “still in negotiations with the customer and hoped to reach an amicable agreement”.

Barbrook isn’t alone. Tim Crump, owner of TG Crump Oakwrights, a small housebuilder, received a £56,922.22 bill from Eon, another German energy group, in August.

The utility sent the bill to Crump, demanding payment within one month. Eon has since offered to knock £10,000 off the bill or to allow him to pay it off over two years. The utility has passed the bill to an outside debt collection agency and threatened to shut off Crump's power if he does not pay.

Times Recommends

• US jobs plunge in worst fall since 1974
• Brown will press banks to pass on full rate cut
• Woolworths axes 450 staff amid firesale