Deemed Contract EDF Energy, Confused

Lady_K

Daughter has moved into a rented house and the previous owners had edf energy for both gas and electric. She telephoned with readings taken on the day they moved in and gave both her and her boyfriends names to be put on the bills. They have recieved a letter saying they are on a deemed contract and to contact them to save money on thier bills. Whatr is a deemed contract?

What is the best thing to do now? Is it the right time to see if they can get cheaper for both elsewhere or should they stay with them and see what they can offer?

Will they be tied to any contact as they are in rented accom.

Shes so busy having started as a new nurse this week I said I would ask here for her as she just hasnt got the time to do it herself

Premier_2

The contract is deemed because although they may have not signed for it, it exists by nature of the fact that EDF is supplying and presumably your daughter and her b/f are using that supply.

Refer to the tenancy agreement about any restrictions on changing supplier - normally any restrictions will only be that you inform the landlord accordingly (so that he knows who to contact when they eventally leave the property).
Or put another way, as long as they return the supply to EDF before they leave, he'll probably never know!

At present they won't be tied to any contract, but they are probably on the EDF standard tariff - the invite to contact EDF is to pursuade them to take potentially a better deal (e.g. pay monthly via DD, fixed/capped rate) and that may come with some ties - make sure they are fully aware of any tie-ins before agreeing to any change.

ducky2004

I am looking into this issue and think the following addition will be useful. Basically, prices and terms of the deemed contract shall not be too onerous and that the price shall not significantly exceed cost :


http://www.ofgem.gov.uk/Markets/RetMkts/Compl/SLR/SteerngGrp/Documents1/14319-Deemed%20Contracts.pdf

Cardew

In most cases prices charged on a deemed contract are for their 'standard' tariff - which is generally the most expensive other than 'green' and fixed/capped tariffs.

EDF will have cheaper tariffs, but then so will other companies. It is not possible to say who will be the cheapest as their consumption, and where they live will influence the total price.