Utility- Landlord dictating where i must get it from?

jen_br

I am renting a property, off an estate agent company so its the private sector.

However, they are saying i CAN NOT switch my elec, and gas supplier even if there is someone cheaper.

Is this legal? I mean the bill is in MY name im paying for it.. surely they can't dictate this?

N79

It is not illegal to put the term in a tenancy agreement.

The term may not be enforceable but there is no court ruling on this topic so it is not possible to give a definitive answer. The OFT believe that a blanket ban term is unfair but then the OFT also thought that bank charges were unfair...... so their opinion and their guidelines are just that; they are not law.

As a matter of interest, is this a blanket ban or has the LL simply refused your particular choice of new provider?
If the former then it is more likely that it is unenforceable.
If the latter and the LL has a reasonable reason for refusing permission then, in my and the OFT's position, the LL is on solid ground.

Negotiation is probably the way forward.

mlz1413

I've know tenants just change the supplier without asking so I can't imagine it is a legal requirement to have the LL's consent, or the utility companies would say so.

Was it the Agent or LL who told you this?
Was it verbal, in writing or part of the contract you signed?

You could write to LL & agent saying you intend to change supplier but will return to current supplier in notice period.

olias

Just out of interest, how would the landlord know or find out? Surely the only person who would receive correspondence would be the tenant.

Olias

Fire_Fox

Just switch - what penalty can the letting agent enforce? There is no financial loss to them or the landlord (unless they are getting a kickback??) as long as you pay and do not end up with a prepay meter.

tbs624

Just a guess - is the company they wish you to go with Southern Electric?

"Revenue stream" for LA/LL - they also get a write off of small bills in tenancy voids etc with some firms and, in their phraseology, "ease of administration when Ts move out/in"

It should not be possible for LLs/LAs to dictate a choice of supplier for the duration of the tenancy, when the contract for the supply is to be in the T's name and the bills are to be paid by the T.

LAs will be trying to dictate which sort of lavvy roll all tenants may use next...on the pretext that it helps keep the LLs drains/public sewers in better order if Brand x is used.

Ts ( & any one else who disagrees with such clauses) should highlight this activity by writing to their MPs, to the campaigns officers at Shelter, the CAB etc.

Essentially, there is a collusion between a utility company and a letting agent which results in forcing a T to pay a higher rate for their utilities and to forgo the right to shop around. Detriment to the T, benefit only to the LA ( & utility co) = it cannot really be anything other than an unfair term IMO.

N79

tbs624 wrote: »

Essentially, there is a collusion between a utility company and a letting agent which results in forcing a T to pay a higher rate for their utilities and to forgo the right to shop around. Detriment to the T, benefit only to the LA ( & utility co) = it cannot really be anything other than an unfair term IMO.

Damn I need to find out how to get in on this revenue stream - just think of all the Carribean villas I am missing out on:rolleyes:

Seriously though, I think we agree, at least in principle.

I have no problem with a tenancy term along the lines of "Ts must apply to the LL in writing for permission to change utility provider; such permission will not be unreasonably withheld by the LL etc" which, if properly exercised, is merely ensuring that the LL is aware of changes to the provider. This saves LL costs at the end of the tenancy. In fact, I use such a term myself. It merely means that I have justification for charging Ts the cost of recovering control of the utilities if Ts have failed to abide by the tenancy agreement.

Any blanket policy refusing changes / forcing T to use a particular supplier is, in my opinion, clearly unfair. Unfortunately, I suspect it will be a while before we have a court ruling on the issue.

Nitha

I think we've had tenancy agreements stating the same but never had it enforced. I guess the way most LL's see it is if you can't switch to a cheaper provider you could get into arrears (because you can't afford the enforced provider) and ultimately the gas/electric company could force a prepay meter (not sure if all of them still do this but the company I used to work for did)

I would try approaching them again offering to switch back at the end of your tenancy and explaining that being put in this position may affect your decision to renew your contract in the future.

TrickyDicky

Given that there is absolutly no logistical problems with changing (all the pipes and meters stay the same) I doubt theres anything they can do to stop you. They may get a bit upset if you had a water meter installed though!

When we first moved in the LA was useless. They told us the gas and electric were southern electric so we filled in all the forms - only to find out it was actually british gas. The management company said that Leaders had a deal going with southern electric which is why they did this. Meant we didnt pay an energy bill for a couple months till we got a "we notice you're using our electricity and we dont know who you are" letter from BG !

tek-monkey

I'd just change, whats it to them? How can it possibly affect them, unless they do get a kickback? And if they do, I doubt they'll go to court with that as their reasoning!

poppysarah

On singing pig I think I read about some company that pays a % to the landlord ... sounds very unfair