A Village Hall’s Success Story! Fighting Back Against Billing Errors

Village Halls play an essential role in communities, yet they often struggle with financial pressures. The story of Potter Heigham Village Hall is a testament to the impact of persistence when dealing with utility billing issues and the savings that can result when groups advocate for themselves. 

The Hall initially saw electric costs decrease significantly after the installation of solar panels, dropping annual expenses from around £1,600 to approximately £650; a positive impact for a community venue dependent on rental income. However, over the last 18 months, electric bills spiked dramatically, reaching an astonishing £7,600 from June 2023 to May 2024. These charges far exceeded what they had anticipated, even accounting for the rising cost of energy. 

Upon investigating, the Committee at the Village Hall noticed a pattern of confusing billing practices, including multiple debit reversals. These reversals, instead of being credited as expected, were mistakenly charged, resulting in the hall effectively paying twice in some cases. 

Despite providing detailed documentation to their provider, EON, the Village Hall initially received limited support. Following a series of emails and phone calls, they were offered a token "gesture of goodwill" of £150, and a request for an official investigation was denied on the grounds that the account wasn’t technically in debt. Not happy, the Committee wanted to raise their challenging experiences with the Ombudsman, but frustratingly, despite promises, a letter of deadlock was never issued, stalling the Village Hall's effort to take their case to the Ombudsman. 

However, their determination to resolve the issue paid off. After multiple escalations, EON ultimately issued a credit of £8,648, covering both the billing errors and a back payment on VAT. The Hall had been under the impression that their rental income made them ineligible for a VAT reduction. However, as they discovered, Village Halls may be eligible for a reduced VAT rate of 5% on electricity, rather than the standard 20% - depending on what the Hall is used for. This correction, backdated over four years, formed a substantial portion of the refund. Read our article about Village Halls and VAT here.  

“The fire was devastating enough but the time and effort put forth in gathering information, documents, and answering questions was unbelievable.  We did it of course in good faith, believing that Zurich would pay the bill.  We ended up about £2500 short on the claim which is a large amount of money for a community organisation that works hard for every penny.  The lesson learned was just because the insurance company sent a renewal invoice, don’t assume that what is offered will cover your insurance needs today.  Their customer service is far from adequate.  As for EON, we eventually got there but again it took a lot of effort, time and attention to detail.  We overpaid by at least £4,500 and it was several months of us pushing back before EON agreed to even investigate.  They hoped we would accept a £150 payment as a good gesture and go away!  Both of these experiences put huge financial pressures on the Village Hall and its operating budget forcing us to put off much needed improvements and repairs. “ 

Potter Heigham Village Hall’s experience serves as a powerful reminder that Village Halls and other community buildings should always question unexpected charges and push back against confusing billing practices. Their story highlights the importance of self-advocacy and the fact that persistence can lead to significant savings. 

“We are volunteers giving our time and energy to support our communities.  These big companies owe us better customer service and support. However, in the words of Sir Winston Churchill, never give up!”  - Potter Heigham Village Hall Committee

For Village Halls facing similar issues, REMEMBER don’t let size deter you from standing up to large utility companies. With patience and determination, you can ensure fair treatment and potentially uncover cost savings.         

How to raise a complaint 

The Financial Ombudsman has a three step process when making a complaint. You can read their full how to complain guide here. 

1. Complain to the financial business 
2. Get a final response letter 
3. Make a complaint to the Financial Ombudsman   

When to complain to an Ombudsman 

You can complain to an ombudsman if you’ve already complained to the organisation and couldn’t solve your problem through their complaints procedure. Find out more about when you should complain to an Ombudsman here.