Sussex businesses hit with huge rise in electricity bills

Sheet metal manufacturers Pentacraft have seen its bill increase from £2,281 last quarter to £13,263

Businesses at an industrial estate in East Sussex have seen huge increases in electricity bills after the site was switched to a new tariff.

All 23 tenants at SM Tidy Industrial Estate in Ditchling have been moved to a new £1 per unit electricity deal.

John Bowden, owner of Gumtree 4x4, said his most recent invoice was £6,203 - up from £1,066 in the previous quarter.

Managers of the site blamed the impact of the global energy crisis after a fixed term contract ended last year.

Mr Bowden, who has been on the industrial estate since 2000, said he received a warning in October that the site was changing from a fixed rate tariff to a variable tariff.

It meant his cost per unit of electricity rose from 17p to £1.

'Sleepless nights'

He said: "It is a big dent in the cash flow if we were to pay it in full. We have made a payment of what we feel would be fair, so that we are not in dispute over the entire invoice and that we are showing good will."

He added: "I've been in business for 42 years. This is not water off a duck's back."

Jayne Hayes, from sheet metal manufacturers Pentacraft, said the increase was "heartbreaking", and could lead to job losses.

The company has seen its quarterly bill rise from £2,281 to £13,263.

"It's shocking," Ms Hayes said. "We just cannot absorb that kind of increase. It's been really hard. You have to think about letting people go.

"It's meant my boss has had sleepless nights."

'Market rates'

SM Tidy Industries Limited said in a statement that it was "devastated" with the price hikes as it had enjoyed a "very positive, longstanding relationship" with tenants.

"Unfortunately, the energy crisis is not something that we have been exempt from," it added.

The company said it used an energy expert to seek the best rate possible when its fixed rate ended last year, but it had been "subject to the market rates".

It added: "Since raising their concerns with us, we have agreed to share the burden of the increased costs with the tenants by offering a substantial discount."

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