The "vital" South Tyneside Community Laundry could be forced to shut after being hit by a staggering energy bill "bombshell" - and told it owes British Gas £4,000.
The laundry is run by a non-profit community interest company (CIC) operated by the family firm Poss Tub, which also runs the Poss Tub Laundry, Elite Dry Cleaners, Sew Exquisite, Bridal Path Wedding Studio in Hebburn. Despite agreeing a fixed tariff in January last year, owner Stuart Urwin was stunned to be told that his British Gas bill was to rise from £334 a month to £800 a month - and that he was £4,000 in arrears.
The hike is being blamed on incorrect estimates of the business's usage - but Stuart said the family had been told the Smart Meter had been fixed, and that manual meter readings were cancelled, and Stuart said this was clearly "totally out of our control".. He said there were eight jobs and a much-needed community service on the line.
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Stuart said: "The thing is that the community laundry has been going for 40 years. We took it on 12 years ago and we do it as something to give back to the community.
"We put the profits from our other businesses into the community laundry to keep it going. But with bills like these we are going to have to let the community laundry go if we want to survive.
"And this is a service for people who may have no family, who rely on carers coming into their homes. They might be bedbound perhaps, or rely on hoists. The community laundry cleans their hoists, bedsheets, all of those kind of things. And this is what is going to suffer because of what British Gas are doing to us."
The firm said Stuart's payments since April last year hadn't been enough to cover his usage - and that it had offered a payment plan to help.
This comes as energy firms like Centrica - who own British Gas - come under fire for posting huge profits while passing on massive bills to customers. Last year it made operating profits of £72m at its British Gas retail division, British Gas Energy, but though this was down 39 per cent on the year before.
Stuart added: "They are earning millions, that's the thing. And when you look at the wholesale gas price, which is far lower than it was, I just wonder why they are doing this. There are eight jobs on the line here, that's the worst thing. British Gas have no idea what they're doing to a family business."
In 2010, the community laundry was saved after being transferred to the control of Stuart's family business. South Shields MP Emma Lewell-Buck - then a councillor - was instrumental in this. She told ChronicleLive that the situation was "completely unacceptable".
She said: "The South Tyneside Community Laundry is an absolutely vital service to so many, especially those who are house-bound and rely on the service to ensure they have clean clothes to wear.
"This kind of treatment at the hands of British Gas is completely unacceptable, especially considering the backdrop of soaring profits for a company that is making billions. It is time the Government got a grip, introduced some proper support that puts the public and businesses above the profits of energy giants."
A British Gas spokesperson said: "A general increase in energy prices has resulted in an increase in Mr Urwin’s bills. We can see that the situation is difficult for Mr Urwin and have offered him a payment plant to help him with his debt."
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