A Shropshire council might have no option but to pay a disputed £58,000 electric bill, it was revealed today. 

But Oswestry town councillors will be told that they may be able to negotiate a settlement to pay less than the full sum through a “goodwill gesture” by British Gas.

The council has been involved in a dispute for several months with British Gas over the electricity bill for Powis Hall indoor market.

It says the amount owing is incorrect and it is impossible for the bill to be so high.

Council bosses suggested the apparent error was due to British Gas not billing them properly for several years.

Councillors were told the firm had apparently “lost” the authority’s account when it was updating its records two years ago.

Although initial reports suggested British Gas had made a mistake with the bill, the firm’s Midlands region manager Tony Peverill visited the hall and insisted the bill was correct.

Town councillors will be told at their markets and car parks committee meeting tomorrow the council might have to pay up.

Council finance officer Roger Dyke says in a report to go before tomorrow’s meeting: “Mr Peverill visited the Powis Hall again in April with an independent qualified electrician. The meter was again checked for accuracy and further various checks made.

“In Mr Peverill’s view the meter and readings are accurate and usage is consistent with the size and usage of the building.”

Mr Dyke adds: “In a conversation with Mr Peverill he indicated the council could attempt to negotiate a settlement in view of the poor standard of service evident from British Gas, in particular over the fact that they lost our account.

“Mr Peverill stated he had authority to offer compensation of up to £5,000, his senior officer £10,000 and upwards through the lines of seniority, although this is contradicted in his most recent letter.”

The matter will be discussed by councillors at tomorrow’s meeting which starts at 7pm at The Guildhall.

By Iain St John