Fixed contract?

KevinYau

Ok, so my parents have a problem.

They own a small takeaway and almost three years ago they signed a contract with CNG(Contract Natural Gas) to provide gas for them.

They assumed it was a fixed contract as there was a price displayed on the contract even though the word 'fixed' was not present, but a year later the prices went up. They complained and got their money back, but (and I don't think they realised this because English isn't their native language) they continued to charge at a higher rate than on the contract and also at that time, the word 'variable' was scrawled on to the corner of the contract.
Two months notice was given in the form of a letter, but again, I don't think my parents understood the letter and ignored it until the first bill came...

They have been arguing and fighting for a while now and they've just received a letter saying they must pay by next Friday else they will cut off the gas supply.

The contract says on it that "the seller agrees to sell and the buyer agrees to buy gas in accordance with the terms set out in this agreement."

My question is, Does that mean that they must sell at the price on the contract? Should my parents fight or just pay up?

What do you think?

Businessgirl

Hi Kevin,

Unfortunately your parents are going to have to pay. Under business law, for gas, as they are running a business in England, it will be argued that it is reasonable to assume that they understood the terms and conditions before signing. A lot of foreign business owners unfortunately get caught out with this. If your parents do not pay up, the supplier is within their rights to cut off their gas or electricity, and also, they could be done for theft of gas.

How long is the contract for? When can they get out? Also in the future it is preferable for them to refer to Ofgems 9 questions to be asked when deciding on a supplier or contract. If they need time to review the contract, it is advisable that they use an online comparison site that allows them to review all terms and conditions, and the 9 questions before signing. Also, they should go with a site that actually allows them to view a few options, not just recieve a sales call back, and contract verbally. It is important that they actually have it all in black and white.

KevinYau

Thanks BuisnessGirl,

I have more info from my parents now and it makes a bit more sense why they were so strongly against it.
It was because the contract was advertised and sold to them as a fixed rate contract and they specifically asked about the fixed part before signing. They checked with the utility agent that the price won't go up for three years to which they answers that it wouldn't go up..

they came to try cut off the gas so we paid them their demands, plus another £600 for the disconnect guy.

can we get any of that back?

Businessgirl

Hmmm, I don't think so. If you owe them for the energy used, you owe them.

You could try to contact the supplier, plead misselling and see if they reduce the cost...or allow you to move contract. I'm not too hopeful in this regard however! If they do let you move away, I can help you with some sites that could help you out. Also, you definitely should find out when your termination window is, and send in a termination letter! This means you can change to a fixed rate contract!

As to the disconnect guy. I'm not sure you can get that back, but £600 seems a bit excessive. Ask your supplier that when you call up. Explain the misunderstanding and why it took so long to sort out.

Explain very clearly you are planning to move to another supplier...customer retention is a very good motivational factor in getting money back!