Deemed contract rip off?

antrobus

Richie-from-the-Boro wrote: »

...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.

I think that it it would be pretty tricky challenging the existence of a deemed contract given that their existence is a matter of statute law. (Which is probably why no one has tried it.) In any case that OP's complaint isn't about the existence of the contract, but the contract rates. Ofgem's Standard Licence Conditions do state that the terms of a deemed contract should "not unduly onerous". So I imagine if one believed that the rates specified for a deemed contract were a "rip-off" one could complain that the supplier concerned was in breach of the SLC.

mjm3346

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.

The alternative would be for the supplies to be disconnected on final meter reading for the previous occupant but the reconnection charges would cost you far more than a few weeks on a higher tariff.

little_lentil

But the dates are smooth. Previous occupant left on one day, and I moved in the next. I asked them for a quote within a week, and they took another week to provide it, which is dithering. Without quotes to compare I couldn't make a decision. Further, I have recently had to go on to fully living on benefits. I understand that energy firms have to offer me their best deals because of that. And yet with DCs they can charge you a really high rate. That seems nuts.

Is there any way of MSE picking up on this as a thread and campaigning on it?

About 11% of the population moves home every year so this affects a lot of people.

undaunted

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.

Yes you can in theory avoid paying them a penny - by not using any gas or electric, arranging the switch in advance etc.

Not ideal of course but failing those choices I'm afraid you can't expect both to refuse their better offer, move in, use their supply and yet still get the better rate (or similar) until Co-op take over

PS The deemed contracts rates cover the "standing charges" within those rates, there is not an additional standing charge

tunbridgewells18a

I bought my house in December 2012, it's vacant and the gas supply was already disconnected to the property. I picked up a letter from Gazprom in March addressed to a very odd company name (certainly not me at all) informing of a 'deemed contract' existing with a daily rate of £1.60 rental of their meter. It was the first I had heard of either the meter or of Gazprom. I now have a bill for £218.40 representing 5 months and a threat to commence legal proceedings if I don't pay - this sent to my husband's office address with again this weird company name.

I have not been offered a contract, nor any cooling off period.

I will be reconnecting the gas supply once the house is done up, but I certainly will not consider Gazprom at all. Not only is their figure gouging but the guys who answer the phone are aggressive and extremely unpleasant.

I don't understand why I can be deemed to have any contract at all with Gazprom. Reading the threads on this forum it appears that I don't. Its scary to refuse to pay with these threats though.

Nada666

In what sense was the gas supply disconnected? Capped is not disconnected.

Richie-from-the-Boro

Gazprom UK is for gas to industrial and commercial, not domestic users - Vladimir Putin doesn't like them either.

tunbridgewells18a

I bought the house from a limited company (as an individual) with the intention of doing it up and transferring it into residential. Until I move in though it will remain valued as a business. Therefore all the utilities will remain on business tariff until then also.

I don't know when the gas was completely disconnected from the house (no pipes nothing into the house) -- the last tenant company moved out nearly 2 years ago. The meter though still remains.

I note in the thread that the deemed contract rate includes supply and rental. But in my case there is no possibility of a supply.

I would have no problem with paying a reasonable bill, but this?

Cardew

What does the solicitor who dealt with the purchase have to say?

tunbridgewells18a

Thanks, I'll check with her
Hilary