Deemed contract rip off?

little_lentil

Hi,

I moved to a property in December which was on an npower juice tariff (previous tenant's rate). I contacted npower, informed them I was the new tenant, and was offered their Energy Online August 2014 rate of 45.05p daily standing charge and 10.63p for electricity units and 51.24p daily standing charge and 3.619p for gas units.

I rejected this in favour of Co-Op's Pioneer tariff. (British, cheapest, friendlier, no exit fees, they put fees down sometimes unlike anyone else and it's green energy. Sounds pretty good to me!)

Having informed npower of this, they have said it can take 40 days to change suppliers and my deemed contract rate will be: first block unit rate for electricity – 19.92 and the follow-on unit rate – 1505 (sic - assuming 15.05). The charges for your gas will be first block unit rate – 7.361 and the follow-on unit rate – 3.618.

I have no idea what a block unit rate is, but I'm shocked that the rate is double that of a normal tariff.

I've done a forum search and can't find any details about specifically contesting deemed contract rates (there is a thread by legal_beagle) but it's not really a 'how to' about this issue.

Also, they have not said so in the email, but will they try to charge me a daily standing charge too? I'm amazed that they seem to be able to charge whatever they want, and that it is so high. Any way of bartering or getting round this - getting it down to a sane rate?

Thanks for reading.

HappyMJ

Npower it's usually the first 2kWh per day on electricity and on the gas you will be charged the primary unit rate on....well it's winter it could be anything. It's charged seasonally so you will be charged more in winter and less in summer.

This document might give yu an idea...http://www.npower.com/idc/groups/wcms_content/@wcms/@resi/documents/digitalassets/how_to_work_out_your_gas_bills.pdf

chanz4

Thats unsusual as normaly suppliers put you on a standard tariff, by the way co-op is a reseller

dogshome

When you move you have to use the current supplier to that address, report your residence and the meter readings - Unless you opt for a different tariff at that time, all suppliers will put you on their "Standard" tariff.

With the refusal to go on n'powers online energy 2014, you went back to the default Standard tariff and will be on it till your Switch to the Co-op is completed

oldskoo1

I had this exact issue back in August so i feel for you as its winter.

I inherited their npower tariff, to get the lower rate i had to go onto a contract which wasn't what i wanted as i wanted to switch back to the co-op.

Very high rate but luckily gas usage stayed quite low with the warmer weather.

little_lentil

Is there any way of contesting their rates though? A deemed contract has never actually been agreed to in any way in writing. It's such a con. And in winter too! I gave them readings when I moved in and am happy to pay a reasonable fee for my fuel, but this is not a reasonable fee.

Richie-from-the-Boro

The industry view is that they have [past tense] provided a service and will have paid out charges to the distribution network operator that they would normally pass through to the customer. Ofgem say a deemed contracts applies only once gas or electricity is consumed. Either way if a pilot light on the CH or oven is on, or the burglar alarm is charging its battery backup you are consuming and as such have accepted the service offered, let alone your switching on a light.

If you had not used any of the supplied energy you could have argued that the suppliers claimed right to supply is a unfair term as there was no customer / supplier relationship existed between you. Unfortunately you did reach an agreement when you rejected their offer in favour of Co-Op's.

It would make an interesting case in law and in practice if someone rejected the 'deemed' contact for a supply of goods or services as unsolicited and unacknowledged and therefore no contract deemed or otherwise pre-exists. As far as I'm aware no one has ever taken it to law, you could be the first.

macman

As the name suggests, a deemed contract does not have to be agreed to in writing. Nor indeed does any energy contract these days, since most people sign up online or by phone.
A contract is a legally binding agreement, not a signature on a piece of paper.

grahamc2003

little_lentil wrote: »

Is there any way of contesting their rates though? A deemed contract has never actually been agreed to in any way in writing. It's such a con. And in winter too! I gave them readings when I moved in and am happy to pay a reasonable fee for my fuel, but this is not a reasonable fee.

While the whole concept of deemed contracts does seem at odds with most other contracts, the industry has to have some sort of solution to keeping a gas and electricity supply connected during a change of occupancy.

Try to appreciate the problems in doing that, and you'll soon come to the conclusion that a deemed contract is the best solution. The alternative would be the gas and electricity being disconnected on the changerover day due to a lack of anyone responsible for the gas and electricity being used (in fridges/pilot lights/ alarms etc etc). There'd then be a reconnection cost falling on the new occupant once he'd applied for the tariff he wanted.

While not perfect, and legally odd imv, deemed contracts are the only sensible way to change chageover. Seems reasonable thast if you don't choose a different tariff with the existing supply when you had the chance that you get put on the default standard tariff.

Bark01

Simple way to get round this, give the new supplier the same reading as what ever you gave to npower when you moved in then you won't be charged anything.

grahamc2003

Bark01 wrote: »

Simple way to get round this, give the new supplier the same reading as what ever you gave to npower when you moved in then you won't be charged anything.

.... except possibly theft and/or fraud.