Understanding Energy Administrations

The debt collection process can be confusing and very concerning for many people. Barratt Smith Brown have therefore created a guide to explain how debt collection works. This guide highlights the key stages in the process and how you can work with us and external debt support organisations to get control of your finances.

Why is there a global energy crisis?

The recent increase in wholesale global gas prices has had an impact on the cost of energy in many countries. The main factor driving these price increases has been the Russian invasion of Ukraine. Russia is the world’s biggest exporter of natural gas and around three-quarters of these exports have traditionally gone to Europe and Turkey.

European efforts to move away from dependence on Russian oil and gas since the war, and a simultaneous increase in demand for oil and gas from Asia, have created a supply and demand crisis. This is driving the substantial price hikes in UK households’ energy costs.

These are unprecedented times and consequently, we have seen a significant number of UK energy suppliers entering administration and exiting the market.

What is an administration?

A company administration is a formal insolvency process. When a company is no longer financially viable, and therefore must cease to trade, an administrator is appointed to help rescue any viable elements of the business, reduce any ongoing costs, and secure returns for any people or businesses to whom the company owes money.

What is the role of Barratt Smith and Brown?

Barratt Smith and Brown are a debt recovery agency. Our job is to recover any monies owed to the business so it can settle its debts with its creditors. These creditors could include other business which have provided it with a service or sometimes even the employees who have not been paid.  The recovery of these monies in critical to ensure as many people as possible receive the money they are owed.

What can I do if I think the amount on my statement is incorrect?

If you have a query over your final bill, please get in touch. For most administrations we can recalculate bills based on revised meter readings and will happily investigate any queries regarding final balances. The administration process is complicated so if your bill seems wrong, please don’t panic! Give us a call and we will happily work with you resolve your query.

Why am I being asked to provide evidence of a payment I have made?

In the process of entering administration some records may be lost and some payments incorrectly allocated. By providing us with evidence of payment (screen shots from your online bank or bank statements) we can immediately allocate any missed payments ensuring you are only asked to pay exactly what you owe.

My bill is based on an estimated read – do I have to pay it?

In the absence of an actual read it is industry standard to use estimated reads to calculate bills. These estimates are based on your historic usage so should be a relatively accurate estimation of what energy you have used and what you owe.  However, to guarantee billing accuracy it is always best to submit regular actual reads to your energy company. If you move in or out of a property it is critical to take actual reads of all meters and it can help to take a date stamped photo of the meter to avoid any future confusion.

Want to know more?

Request a free no obligation consultation to discover how our solutions could deliver your business quantifiable results in your accounts receivables function.