KGM Energy Brokers - eProcurement with Attitude


Centrepoint provides safe accommodation for more than 1,000 young homeless people, aged 16-25, in London and the North East of England. The charity also supports them to become positive and independent through health programmes, life skills, and learning opportunities.


The Objective


Centrepoint were hit with an unexpected £42K bill by British Gas demanding immediate payment relating to four years’ worth of gas supply to one of its hostels. Centrepoint lacked the resources to investigate, so turned to KGM Energy brokers for urgent assistance.


The Process


We immediately contacted British Gas to advise them we were investigating the invoice and requested they put the gas account on hold. Our team then got to work investigating the details of the £42K gas bill. We uncovered the following…

The bill had arisen due to a mislabelling of a gas meter which had an incorrect property address
  The gas meter serial number invoiced corresponded with the gas meter on site.
  The gas units billed (FT3/M3) corresponded with those on the meter.
  We established actual daily gas use by recording meter reads a few days apart to calculate average daily use. Then using seasonal load factors we extrapolated gas use over a 4 year period
  We carried out a benchmarking exercise of similar sized properties to establish whether the invoiced amount was in line with other similar properties.
  We checked VAT rates were correct
  We investigated and recorded all charges applied to gas usage and standing charges


Outcome and Benefits


It transpired that British Gas had charged all gas used over the four year period at Out of Contract rates. We reviewed wholesale gas prices and Centrepoint's group gas contract rates negotiated over the four year period, and made a case to British Gas that since the mis-labelling of the gas supply was not the fault of Centrepoint, it would be fairer to charge the charity the equivalent of contract rates for gas used over the allocated period.


Impressed by our detailed analysis and presentation, British Gas agreed with us. We then reviewed Centrepoint's historical gas contract charges going back four years, and proposed a fair total amount to British Gas, which they accepted. Finally, we reviewed the rebilled gas account to check British Gas had applied the agreed discount correctly.


As a result of our detailed analysis and due dilligence, we were able to save Centrepoint £12K plus VAT on the outstanding British Gas invoice, 30% of the total amount!!

Plus, we did all that without charging Centrepoint a fee. We have a policy of helping long term clients resolve any 'one-off' unexpected billing issues free of charge.


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