Changing Supplier Notice

dillydog

Hi, our present contract with British Gas is due for renewal the 6th November and after having rung them today we have been informed that they require 3 months notice if we want to change supplier and the rates they have now given us for the next period will just about double. We have an online account and have not been notified by email by them only by letter which we have not seen as we live in Spain and the building they supply is in England. They are fully aware that we live in Spain and agreed that we probably had not seen the letter! So basically is there anything that we can do to either a. get then to reduce the prices or b. still be able to change supplier? Many thanks if you reply.

jalexa

dillydog wrote: »

...They are fully aware that we live in Spain...

I am assuming this is a business contract?

What *exactly* do you mean by "fully aware". What does the contract specify? If not Spain did you subsequently amend the "billing address" to be Spain?

Regarding cancelling the contract, give notice in accordance with the contract.

The Energy Ombudsman scheme covers "micro businesses".

dillydog

When we took out the contract with British Gas we notified them that we live here in Spain and when talking to them on the phone this morning their system shows this.
We were waiting to be notified by email for the renewal as we have an online account.
Yes, it is a business account that we have.

Wywth

Our Out of Contract rates apply by default for customers who have not agreed a pricing arrangement with us or where a pricing arrangement has expired or been terminated and has not been renewed for any reason. We will charge customers at our 'Out of Contract' rates for the entire period that they take a supply of gas and/or electricity while no other pricing arrangement exists. Our 'Out of Contract' rates will necessarily be more expensive than our most competitive offer.

http://www.britishgas.co.uk/business/products-and-services/deemed-rates.html

I suggest you get a new pricing agreement/contract in place sharpish!

jalexa

dillydog wrote: »

When we took out the contract with British Gas we notified them that we live here in Spain and when talking to them on the phone this morning their system shows this.
We were waiting to be notified by email for the renewal as we have an online account.

This is quite straightforward. You give them notice strictly in accordance with the contract, I suggest using Recorded Delivery. Then at the expiry of the contractual notice period you are free to take out a new contract elsewhere.

Having done that if your feel you have suffered detriment arising from any "breach of contract" with regard to notification, you would be entitled to complain and if you remain dissatisfied at the conclusion of the complaint process you would be entitled to refer the issue to the Energy Ombudsman.

To measure the "detriment" you need to get a range of firm quotes for 6 November and work out your excess cost from 6 November to the actual cancellation date.

All that said it is not impossible that the Energy Ombudsman might find that you did not comply with a notice term clearly stated in the Contract.

Terrylw1

If you are classed as a "micro business", the maximum termination period is 90 days.

Check your t&c's though to be sure that someone isn't quoting the maximum in error.

Once it ends, you enter into a Deemed contract where they will charge more. Its been a common complaint over the years that business customers become badly penalised by far higher rates. You need to manage this in every contract to avoid these issues.

You have the right to go to the ombudsman but as long as the supplier had complied with Standard Licence Condition (SLC) 7A, they may side with the supplier. Your task is to dent any compliance such as your issue with communication.

I think if you read SLC7A, you will be able to argue the fact that they ignored a previous agreement for contact hence preventing you from extending a contract. Where the notice period kicks in, the supplier won't allow an extension but they knew you wouldn't see any offer in time...so scrutinise any offering and the dates after reading this.

See the supplier .PDF's.

http://www.ofgem.gov.uk/Licensing/Work/Pages/licence-conditions-consolidated.aspx