Oswestry councillors claim they have received an “extremely poor service” from British Gas and are to press for compensation following a dispute over a bill of more than £50,000.

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

The invoice of £58,000 arose after the energy company lost the council’s account when updating account numbers in 2007.

But a report to councillors last night stated the firm’s Midlands region manager Tony Peverill visited the hall with an independent qualified electrician in April and the meter and readings were found to be accurate.

It added the usage was consistent with the size and usage of the building – which was not deemed to be energy efficient. The latest invoice, councillors were told, stands at £52,000 plus VAT.

In his report, finance officer Roger Dyke said if the council accepted the reading was accurate it should pay the bill. But, he added, it could try to negotiate a settlement “in view of the poor standard of service evident from British Gas”.

The report added £62,000 had been budgeted for electricity since 2000/01 yet only £27,000 had been paid, therefore the “saving” of £35,000 could be used to offset the amount owed.

Councillors on the Oswestry markets and car parks committee said there had been faults on both sides.

But Councillor Martin Bennett said: “I would suggest we negotiate a settlement and press for compensation.”