Gas Contract Managed by SW Energy

crabanillo

Hi All,

I recently purchased a shared ownership flat from Notting Hill Housing.

They use SW Energy to manager the gas usage. I have to pay 0.08981 per kwh. There is also a monthly standing charge of £8.96 and a management fee that is paid to SW Energy of £10.89.

The flat is a one bedroom flat, I moved in in mid September, used the gas just for hot water and ended up having to pay £40 just for gas that month.

That's crazy expensive, right? They are telling me that because the entire building's gas is controlled by SW Energy I can't change provider or stop paying the management fee to SW energy.

Has anyone had to deal with something similar to this before? Any advice would be much appreciated.

Cheers

Terrylw1

A management fee paid to a supplier? Suggest checking that in the t&c's on their website because that's normally included in standing charge.

Its normally HA's that add these chargex on to make a profit from their tenants since they can't resell energy for a profit per Ofgem.

Suggest starting by asking for this in writing and checking who is paid what. Use the suppliers website for some of it.

From here it gets a bit complicated. There is new legislation covering this but you may need some help with understanding it (maybe use the CAB) but it does state that tenants have new additional rights to have a say in who provides this grouped energy since it impacts them financially.

You can push for a new supply via this but this does cost the landlord so they may oppose it (hence support from the CAB on understanding how to force them).

Start with this.

http://www.dwf.co.uk/insight/legal-updates/new-regulations-give-tenants-the-right-to-choose-electricity-and-gas-suppliers

Its quite a new concept. I know of cases going to court where businesses are overpaying due to this but they have got the finances and legal representation. I don't know of the success of domestic consumers though.

macman

9p per kWh is insanely expensive, 4p is the going rate. The SC is about right.
Might have been an idea to check these charges out before buying the property though?
I'd be studying the leasehold agreement in great detail now.

crabanillo

Hi Guys,

Thanks for your responses.

I couldn't find anything on the "Agreement for Lease" about how the has management works.

I did find this in a "Declaration Form":

"I have been made aware that the heating and hot water at this site are run from a gas communal system and charged to me through my management agent. This charge will be either based on apportionment or consumption which will be confirmed to me when a strategy is agreed."

I was never informed of the "agreed" strategy... I never chased them on this because I actually thought that by bulk buying the gas we would get cheaper prices.

I don't think SW Energy are our supplier, I think their job is to remotely read our meter once a month and charge £10 for that. It is just ridiculous.

Thanks for mentioning the "Electricity and Gas (Internal Markets) Regulations 2011 (“the Regulations”) ". I will send them another email mentioning the law and see what they say.

macman

Ask the managing agent what the 'actual' unit charges are.

Terrylw1

Terrylw1 wrote: »

A management fee paid to a supplier? Suggest checking that in the t&c's on their website because that's normally included in standing charge.

Its normally HA's that add these chargex on to make a profit from their tenants since they can't resell energy for a profit per Ofgem.

Suggest starting by asking for this in writing and checking who is paid what. Use the suppliers website for some of it.

From here it gets a bit complicated. There is new legislation covering this but you may need some help with understanding it (maybe use the CAB) but it does state that tenants have new additional rights to have a say in who provides this grouped energy since it impacts them financially.

You can push for a new supply via this but this does cost the landlord so they may oppose it (hence support from the CAB on understanding how to force them).

Start with this.

http://www.dwf.co.uk/insight/legal-updates/new-regulations-give-tenants-the-right-to-choose-electricity-and-gas-suppliers

Its quite a new concept. I know of cases going to court where businesses are overpaying due to this but they have got the finances and legal representation. I don't know of the success of domestic consumers though.

Sorry, just noticed you stated gas and the link I posted was for an elec change.

You can access the legislation to check for anything you need on https://www.leglisation.gov.uk but they can't resell for profit.

Given they will have a business contract, this is worth seeing to make sure you are paying what you should.

The fact they don't have a strategy is a concern as they seem to be suggesting they don't have a policy for charging for this supply...so they could make it up as they go along!

crabanillo

I finally managed to get an straight answer from them. My usage in September was 377 kwh. From what I've read that it is way below average, isn't it?

They are charging me almost £0.09 per kwh, £10.89 admin charge and £8.96 of standing charge.

I've tried everything I can with them, what can I do? Contact ofgem?

Thanks

macman

Since your contract is with the managing agent, it's them you need to discuss this with.
Have you discussed this with the other residents, other tenants in the bock, etc?

crabanillo

The housing association refuse to put me in touch with the managing agent. Saying that I am unable to contact SW Energy directly. As they bill Notting Hill directly, the relationship is with Notting Hill and they would not be able to discuss the account with me as I am not recognised as named on the account.

We have a meeting tonight, I was planning on discussing it with them then.

macman

In that case you must dispute it with NHHT or whoever you pay. Too many middlemen.
Did you not establish the nature and cost of this arrangement when purchasing the property though?