Is it legal for letting agents to change energy suppliers to rented properties?y

mo_mo_mummy

I noticed a spelling mistake, so I am re posting, apologies! My tenants left earlier this year, we left the property empty to do some work on it. The letting agent, without my knowledge or permission, changed the power supplier to Eon. They get a commission from Eon for doing this and apparently, the customer gets a discount on the bill. I have checked and they are not the cheapest supplier for my needs.Needless to say I have changed it back to the original supplier. I know from talking to Scottish Power, my original supplier, that this has happened regularly. Are they able to do this? I was under the impression that the person paying the bill was in charge, not the letting agent. Incidently we had already told Countrywide letting agents that we were not renewing our agreement with them.

Cardew

I don't think the term 'legal' is appropriate as I am pretty sure it is not 'illegal'.

Certainly the intent of legislation is that the account holder is responsible, but in engaging the services of a letting agent, it can be argued that you are passing them some of that responsibility.

It would appear from posts on MSE over the years that the practice is widespread, some letting agents receiving commission from companies(Sothern Electricity were quoted several times) and others having set themselves up as salesmen(Independant Distributors for Utility Warehouse).

If you have suffered material loss(and your tenants were not consulted about the switch) you might have grounds for a claim - but I suspect any court case would cost you thousands.

P.S. You can delete the duplicate thread - go to edit!

DVardysShadow

Cardew wrote: »

... Certainly the intent of legislation is that the account holder is responsible, but in engaging the services of a letting agent, it can be argued that you are passing them some of that responsibility.

The account holder will be the tenant. OP is Landlord. A letting Agent [appointed by the LL] cannot assume powers over the tenants utility accounts. And any term in a tenancy agreement giving the LL discretion over the tenants' choice would be held to be unfair - at least on the Housing forum.

When tenant vacates and LL takes possession, LL will be in a deemed contract with tenants' supplier. LL has no option in this.

Cardew

DVardysShadow wrote: »

The account holder will be the tenant. OP is Landlord. A letting Agent [appointed by the LL] cannot assume powers over the tenants utility accounts. And any term in a tenancy agreement giving the LL discretion over the tenants' choice would be held to be unfair - at least on the Housing forum.

When tenant vacates and LL takes possession, LL will be in a deemed contract with tenants' supplier. LL has no option in this.

Yes I was aware of the OP being the owner, but the LA might have got the tenant's permission(or at least the tenant didn't object) - I am assuming this happened before the tenant left.

However regardless of when the LA changed the supplier, I totally agree it is unfair and it shouldn't happen. However IMO it is not illegal - under what statute could he be proscecuted?

As said in my post you could take civil action in the Small Claims court to recover any loss incurred.

Premier_2

mo_mo_mummy wrote: »

I noticed a spelling mistake, so I am re posting, apologies! My tenants left earlier this year, we left the property empty to do some work on it. The letting agent, without my knowledge or permission, changed the power supplier to Eon. They get a commission from Eon for doing this and apparently, the customer gets a discount on the bill. I have checked and they are not the cheapest supplier for my needs.Needless to say I have changed it back to the original supplier. I know from talking to Scottish Power, my original supplier, that this has happened regularly. Are they able to do this? I was under the impression that the person paying the bill was in charge, not the letting agent. Incidently we had already told Countrywide letting agents that we were not renewing our agreement with them.

You are correct in that only the account holder can normally authorise a change, but in this instance the agent was presumably employed by you to manage the property.

You will have to refer to the terms of your agreement with them as to whether or not they had appropriate authorisation. If the bills are sent to them and they pay them on your behalf, then I suspect they had authorisation. If you were resposnsible for paying the bills, then I'm not sure how this happened without your knowledge as the supplier would have conrtactec you - the new one to give you your legal notice to be able to cancel the switch and the old supplier with a 'soory you are leaving' message.

Still, you probably got a big bung for switching back, especially if its SP, so what's the issue?

Mr_Ted

Premier wrote: »

Still, you probably got a big bung for switching back, especially if its SP, so what's the issue?

???Is it really necessary to make that sort of comment???

dogshome

Standard contracts between Managing Agents and Landlords are usually drawn up by the MA, and surpise surpise, make no mention of changes to Utilitity suppliiers which gives the MA carte blanche to make a few bob over and above their stated fee's

It's up to the Landlord, who is resposible for the bills when the dwelling is in limbo between teants, to write into the contract any control they want to have over utility suppliers
However, Ofgem have said that tenants have the freedom to Switch suppliers, and that where the lease does list a specific supplier, permission for the tenant to Switch must not be unreasonably witheld

As the the Landlord pays bills the between tenants and needs to know who the supplier is, it would seem reasonable for the lease to require the tenant to get permission, which would be freely given to tenants but not MA's, from the Landlord for changes to the Utility suppliers

Premier_2

Mr_Ted wrote: »

???Is it really necessary to make that sort of comment???

Yes, absolutely.

The OP is complaining the agent he employed is making money, but it shouldn't be forgotten that the OP himself was then also then able to make money by switching back. As it was SP that the OP switched back to, then the OP probably probably had the chance to make even more money as SP are renowned for offering one of the best cashbacks for those switching to them.

So everyone's a winner. What's the problem with that???

bengasman

By law, whoever is responsible for paying the bill, can choose the supplier. An agent can therefore not legally switch your supplier or compel you to buy from a certain company.