BES Utilities is a UK-based, independently owned group of companies, comprising Business Energy Solutions Ltd and BES Commercial Electricity Ltd. With offices based in Fleetwood, Lancashire, BES Utilities provides commercial electricity and gas to businesses across the United Kingdom.
History
Business Energy Solutions Ltd (trading as BES Commercial Gas) was established in 2002 and BES Commercial Electricity Ltd was established in 2009. BES Telecom Ltd was established in 2013 and subsequently sold in 2017. In November 2015, BES Utilities applied for a water services licence with the Water Industry Commission for Scotland.
Company Growth
Since its formation, BES has grown to become one of the largest employers on the Fylde coast, with over 250 employees. BES Utilities was featured in the 2017 London Stock Exchange Group’s 1000 companies to Inspire Britain report. BES Utilities was amongst four companies within the North West credited with being the most dynamic and fastest-growing SMEs (small to medium-sized enterprises) in the country. In 2018 the company created an additional 50 new roles based at its Head Office in Fleetwood.
It was revealed through the Andrew Pilley fraud trial that at least 86% of the contracts brokered to BES Utilities came through means of fraud, which was through a sham setup of 'independent brokers'.
OFGEM Investigation
BES Utilities were investigated by Office of Gas and Electricity Markets (Ofgem), who found that BES failed to explain in sufficient detail customer contract details and, in some cases, wrongly blocked 108 customers from switching suppliers. The Ofgem investigation resulted in a fine of £2.00, with an agreed redress package of circa £980,000 paid by BES by way of a charitable donation to a debt advice charity and via compensation payments to a number of affected customers.
In September 2023, it was announced that BES was once again under investigation by Ofgem, following the conviction and imprisonment of Andrew Pilley.
Failed Legal actions
In January 2018, BES Utilities settled a High Court case against two men, in which the company had alleged that they had made false claims about the company for three years. They gave voluntary undertakings to the remove any published references to BES, its directors, employees, agents and representatives.
In 2023, following the conviction of Andrew Pilley and his 13-year prison sentence for fraud relating to BES, proving the allegations to be true; the undertakings were destroyed by the High Court.
In July 2017, BES Utilities commenced legal action against Trading Standards' prosecuting authority Cheshire West and Cheshire Council. The matter went to trial in November 2021, with Judgement handed down in August 2022 dismissing the entirety of the claims and finding serial dishonesty on behalf of BES, its Directors and Employees. Mr Justice Freedman found that front-end recordings which contained lies and deceit to customers (allowing termination of any purported contract) were available to BES, but concealed from customers. The Judgement was not released by the High Court until May 2023 to avoid any attempts of an unfair criminal trial.
Criminal Investigation and Fraud Trial
On 28 July 2016, BES offices were raided by Trading Standards as part of an investigation into mis-selling of contracts by purports independent brokers. BES subsequently launched a £8.6 million claim for damages against Cheshire West and Chester Trading Standards in 2017, which failed.
In September 2021 owner Andrew Pilley was charged with fraud and money laundering offences made through BES. The charges included two counts of running a business with the intention of defrauding creditors or others by allowing the fraudulent mis-selling of energy supply contracts, allowing fraudulent mis-selling by sales representatives, and being concerned with the retention of criminal property.
Between 10 October 2022 and 19 May 2023, the criminal trial took place at Preston Crown Court. On May 19 2023, Pilley was unanimously convicted on all counts. On July 4 2023, Pilley was sentenced to 13 years in jail. Co-conspirators received other lengthy jail terms.
The co-conspirators included BES employee Joel Chapman (sentenced to 8 months imprisonment) who at the time was Head of Regulatory and Compliance; BES Director Michelle Davidson (sentenced to 6 year’s imprisonment); and Lee Qualter/Goulding who was the director of the sham ‘independent brokerages’ in reality controlled by BES and Pilley (sentenced to 7 years imprisonment).