Can a rental contract legally force you to use a particular energy supplier?

vatedear

Hello, I have a clause in my assured shorthold tenancy agreement (I'm a tenant) that says:

"3.2 The Tenant agrees that all accounts for Gas and Electricity will be through Spark Energy and that these will be transferred to the Tenant(s)' names at the commencement of the Tenancy."

Is it valid, forcing us to enter such an agreement with a particular supplier? Spark Energy are not a signer of the contract.

pjread

I highly doubt that's enforcable, but do you even want to sign any contract with someone who's trying to do something like that?

vatedear

It's already signed, but I've now read so many bad things about Spark Energy that I've no intention of being a customer. This clause was put in by the letting agency (Foxtons - apparently they get commission for it); I doubt the landlord is bothered especially as the property is currently supplied by Southern Electric anyway.

dogshome

I'm afraid that if you have signed the lease you are committed to Spark in the same way as every other clause in the lease

However, once that Switch to Spark has taked place you have honoured the agreement you made and are free to change to another supplier.

As you have seen from the web, Spark are something of a shark in the industry
who make it difficult for customer to change supplier - They have been blocking transfers on the excuse they don't have an up to date meter reading and/or are owed more than £50 - Both of which fly in the face of industry rules - So if you are faced with these tactics phone Ofgem for advice.
It's important that you keep records of your meters readings when you moved
in, and that includes water

vatedear

I haven't moved in yet, but what sort of penalties could there be for just not transferring over (the contract is unclear whether I have to do this or if the agent will do it for me)?

The property is on a pre-payment meter so hopefully that will make it easier.

chanz4

They cant really do zip, as its an unfair contractual term

Wywth

Yes, as chanz4 says, the term is considered unfair by the OFT.

http://www.adviceguide.org.uk/wales/consumer_w/consumer_energy_and_water_supply_e/consumer_energy_supply_e/problems_switching_energy_suppliers/can_you_switch_gas_or_electricity_supplier_if_youre_a_tenant_.htm

http://www.oft.gov.uk/shared_oft/reports/unfair_contract_terms/oft356.pdf (page 64)

I can't see how they could even attempt to stop you switching supplier (but be aware that Spark may try and make you to agree to stay with them for 12 months when you register - if they do, I don't think there is any early exit fee as there appears to be no early exit with Spark)

dogshome

If you haven't actually signed the lease yet, you can strike the Spark clause through and note beside it ' Not accepted' with your initials.

This will probably cause ructions at Foxtons as you are snatching away a tasty morsel of cash from Spark that they were looking forward to - Counter any arguement from them by showing them a letter to the landlord that you have already prepared, pointing out that Foxtons have failed to accept a willing and worthwhile tenant for the property, due to their indulgance in questionable practices to feed their greed.

Let us know how you get on

jalexa

Wywth wrote: »

...the term is considered unfair by the OFT...

Both the links quoted are a little more measured than that. Or waffly. A term may be "potentially unfair" but is not "unfair" until determined as such by an appropriate authority.

I commend the "strike out" tactics mentioned to which I would add "informed negotiation".

A prospective tenant needs to be aware however that the current supplier is likely to be Spark. That is an initial "deemed status" (i.e. the OP "being a customer") that cannot be avoided.

Mrs_Arcanum

Would think unless you are paying for the utilities within the rent this would be unfair. Especially as you have a pre-payment meter.

How would it work if the supplier insisted on a 12 month contract but you only have a 6 month lease for example?

Ring up the current supplier & ask them what their prices are and check if there is any debt left from the previous occupants.

Wywth

jalexa wrote: »

Both the links quoted are a little more measured than that. Or waffly. A term may be "potentially unfair" but is not "unfair" until determined as such by an appropriate authority.

I said it is considered unfair by the OFT (The Office of Fair Trading)

Their view (as per the second link I previously gave) states:

The tenant should have the choice of supplier although he may be required to keep the landlord informed of any change and to return the account to the original supplier at the end of the tenancy

Let's not fall out over semantics or nuances. We are all here to help provide constructive advice for the OP who is requesting help