Major U-turn after takeaway closure as energy company says 'very sorry' over £25k bill mix up

An energy company which demanded a business owner paid a £25,000 energy bill she did not owe has apologised amid a major U-turn. Caribbean takeaway Popz Kitchen was forced to close as debt collectors demanded the huge payment and cut off the electricity in a devastating mix up.

Former owner Lolita Hudson, who never missed a payment to her landlord, suffered a breakdown as she lost the business as a result of being unable to pay for the entire building's energy. Now after months of 'debt hanging over her head', Valda Energy has finally confirmed the responsibility was never hers, but that of the landlord from whom she rented a small unit.

Until last week, the company maintained the 41-year-old owed a staggering £25,754 for two years of energy between 2022 and 2024. It maintained the stance even though she had been making £200 monthly payments to a pre-paid meter.

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After BirminghamLive got in touch, the energy supplier reached out to the mum-of-two to say it was "very sorry" she lost her business. She was removed from the account and Valda Energy is now working with the landlord on a solution.

After receiving their email, Ms Hudson told us: "I wanted to share some great news with you regarding Popz Kitchen and the situation with Valda Energy. After a review of the account, Valda has confirmed the outstanding balance of £25,000 will not be my responsibility. This is an enormous relief, especially after the stress and financial strain that led to the closure of my business."

Popz Kitchen was forced to close in June this year as debt collectors told Ms Hudson it needed £22,000, the sum it said she owed at the time, or she would be cut off. As she didn't have the money, and she insisted it was not her bill, it shut off her energy - marking the end of her business.

She claimed Valda Energy had been 'harassing' her via emails and phonecalls since 2022 as it demanded thousands of pounds for energy - a debt which continued to rise as time went on. The supplier claimed Popz Kitchen entered into a contract for the main energy supply in September of that year - something the former takeaway owner insisted "made no sense" as she was already paying for her rented unit via Metro pre-paid.

She showed debt collectors who called in June the meter and said bailiffs had spoken to her landlord. But they maintained she owed the money as her electricity was shut off. She was told to remove all her kitchenware - which she has stored inside her home for months while searching for another premises.

The main supply at the premises is the responsibility of the landlord, Valda Energy has now confirmed. The company, which said it was 'not at fault', said: “Popz Kitchen continued to pay its pre-payment meter directly to the landlord, but no payment for the main supply was received by Valda. Our collections team attempted to contact Popz Kitchen multiple times from May to try and resolve the supply responsibility issues. The premises was finally disconnected in June.

“The case was referred to the Energy Ombudsman which did not find Valda at fault in our completion of the energy contract or our subsequent collections process. It confirmed that the landlord is responsible for the supply and the outstanding balance.

“Popz Kitchen will now be removed as the liable party and the account will be transferred into the landlord’s name. We are in the process of working with the landlord on their preferred resolution, based on the options outlined by the Energy Ombudsman.”

The supplier told Ms Hudson it would raise a complaint on the account as a "separate concern" and "discuss an appropriate goodwill" gesture as a result of the mix-up. Part of the email to the former business owner read: "I am very sorry this has unfortunately led to the closure of Popz Kitchen, I will raise a complaint on the account as a separate concern to discuss an appropriate goodwill we are able to offer, however this will need to be discussed at a senior level and so I will issue a response on this next week."

Ms Hudson added: "It’s such a relief to finally have this resolved, and I hope sharing my experience can help prevent similar situations for others. There’s still a long road ahead for me to rebuild my business and secure a new premises."

Have you been affected by this? You can contact us by emailing stephanie.balloo@reachplc.com