Letter to Ofgem re South Elec.

dogshome

Becoming worried by the enforced switching of tenants by Landlords & Agents to Southern Electric, I've today posted the following letter to Ofgem

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[FONT=Tahoma, sans-serif]Ofgem[/FONT]
[FONT=Tahoma, sans-serif]9 Millbank[/FONT]
[FONT=Tahoma, sans-serif]London SW1P 3GE 10th September 2011[/FONT]


[FONT=Tahoma, sans-serif]Your Ref. Illegal Utility switching[/FONT]


[FONT=Tahoma, sans-serif]Dear Sirs,[/FONT]
[FONT=Tahoma, sans-serif]I am well aware that you do not deal with individual consumer complaints, but as a regular mentor on the Utility section of 'moneysavingexpert .com ', I wish to report a very worrying trend that has become apparent from questions asked by consumers.[/FONT]


[FONT=Tahoma, sans-serif]Please find enclosed copies of two recent enquiries, both of which relate to tenants who have recieved correspondance from their Managing Agent or Landlord, that attemts to dictate to them which Utility Co. will supply their Gas & Electricity.[/FONT]


[FONT=Tahoma, sans-serif]This problem in a small way, has been around some time with reports of Managing Agents switching the encumbant Utility supplier for a dwelling to Spark Energy whilst the property is in limbo between tenants, but this trend has now moved up a gear and Managing Agents are attempting to force Sitting Tenants along the same path.[/FONT]
[FONT=Tahoma, sans-serif]Obviously the incentive for the Agents to undertake this extra work, is a cash reward from Spark of as yet unkown value, for each account that is successfully switched.[/FONT]


[FONT=Tahoma, sans-serif]However as you will see from the copies enclosed, and perhaps because of your recent actions to curb the sharp practices in doorstep sales, Southern Electric one of the BIG6, has entered into the same underhand ploy to grow it's customer base.[/FONT]


[FONT=Tahoma, sans-serif]Obviously consumers who do find their way to moneysavingexpert .com, get firm advice to reject any pressure from an Agent or Landlord for an enforced change to their Utility supplier, but:[/FONT]
[FONT=Tahoma, sans-serif]The percentage of all consumers who use moneysavingexpert .com is very small, and the fine detail and their rights when Buying/Managing Utility contracts are unkown to many.[/FONT]


[FONT=Tahoma, sans-serif]Whilst Landlords or Managing Agents, other than in very particular circumstances, have no right to dictate which Utility supplier should be used, for many tenants the Landlord/Agent is a very powerful figure in their lives and the[/FONT]
[FONT=Tahoma, sans-serif]'Order' to change supplier will be simply complied with. [/FONT]
[FONT=Tahoma, sans-serif] [FONT=Tahoma, sans-serif]Note that in Copy 1 , the writer has concern that if he does not comply with the enforced change to Southern[/FONT] Electric, the Agent may refuse to renew his lease[/FONT]


[FONT=Tahoma, sans-serif]This 'block' switching initiated by the Landlord/Agent leaves the Tenants severely disadvantaged - They don't know the details of the tarriffs, or even if they are as 'new' customers, being charged Standard tariff rates - Even if they are 'Utility Aware' and ensure they press the buttons for Dual Fuel & Direct Debit to obtain maximum discounts, they can only operate within Southern Electrics available tariffs, which flies in the face of their rights that are enshrined in the 2002 Utilities Act.[/FONT]
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[FONT=Tahoma, sans-serif]In many ways this bribery of Agents/Landlords is a sharp practice beyond the the very worst of doorstep sales, where at least the consumer can follow an established Complaints procedure and get financial recompense.[/FONT]
[FONT=Tahoma, sans-serif]With this transfer of supplier initiated by the Landlord/Agent as a third party, there is no route of redress other than a Civil Court action by the Tenant against the Landlord/Agent.[/FONT]




[FONT=Tahoma, sans-serif]Yours faithfully,[/FONT]

dogshome

Update
In the past, I and other posters have commented that we felt Ofgem was asleep at the wheel, but on this occasion the response was swift and informative.

10 days after mailing the letter I had a phone call from them to clarify various issues, and have now had a written reply which runs to 3 pages, setting out the Guidelines that cover Utilty supplies for Tenants, Landlords & Agents.

Paring it all down these are;
The landlord only has total control of the Utility Supplier if.
a) The landlord is directly responsible for the billing and then sub-bills the tenant
b) The Utility costs are included in the rent

Where the tenant pays the bills but the lease specifies a particular Utility supplier, the tenant can change supplier with the permission of the Landlord which cannot be unreasonably withheld

Outside the above, all tenants who pay bills directly to the Utility suppliers are free to change to who ever they wish.

However, whilst Ofgem have concern about some Landlords/Agents applying pressure to tenants to Switch to a particular supplier, they need hard evidence in copies of the letters sent to tenants by the Landlord or Agent, to investigate the problem