House purchase - supplier says have to take their product

PixelPound

Just bought a house (ftb) and got a letter from the supplier saying there is an existing contact with the house and we have to continue with it. Surely the contract was with the previous owners and we should be able to choose suppliers? I realise we'd pay until switchover, but can they enforce a contract we haven't agreed to our know anything about

[Deleted User]

The contract is with the property, not the former occupier.This is to ensure you move into the property with the gas and electric working.Contact supplier and register both meter readings and date you took over the property (not the date you actually moved in ) asap. Hopefully the end reads of the outgoing occupier will match the incoming start readings. Switch supplier once that is done if you wish, takes abpout 3 to 4 weeks. Any prepayment meters in the property will be subject to a credit check to remove them.

modsandmockers

nic_c wrote: »

Just bought a house (ftb) and got a letter from the supplier saying there is an existing contact with the house and we have to continue with it. Surely the contract was with the previous owners and we should be able to choose suppliers? I realise we'd pay until switchover, but can they enforce a contract we haven't agreed to our know anything about

It's called a 'deemed' contract, and as soon as you have signed up with the existing suppliers, you will be free to switch. The existing supplier has probably placed you onto their 'standard tariff' which is much more expensive than necessary - ask them about their cheaper tariffs, but bear in mind that the cheaper tariffs have an end date, and there might be an exit fee (£30 per fuel, usually) if you want to leave early.

Since you have no idea about how much energy you will use over the coming year, you might as well sign up to the current supplier's cheapest one-year tariff after which you will be in a much better position to make an informed decision about what to do next. The other advantage is that the current supplier will almost certainly switch you onto the cheaper tariff immediately, whereas switching to another supplier takes weeks if not months.

The most important thing is to find out the actual prices of the tariff which you select, and then provide the supplier with regular accurate meter readings. Don't be fobbed off with annual averages and estimated savings and fixed monthly payment plans etc etc. Check every bill carefully, and if ever you receive a bill which is based on an 'estimated' meter reading, then provide an 'actual' meter reading immediately and ask for a revised bill.

DandelionPatrol

sacsquacco wrote: »

The contract is with the property, not the former occupier.This is to ensure you move into the property with the gas and electric working.Contact supplier and register both meter readings and date you took over the property (not the date you actually moved in ) asap.

While I can see why you want to say that the contract is 'with the property', that is a false and potentially misleading description. Contracts are always between legal entities. A property is not a legal entity.

When you take over a property as owner or as tenant, there will always be a contract with the previous supplier by default, called a 'deemed contract' as described above by m&m

macman

The deemed contract method has been in operation for about thirty years now-the alternative would be to disconnect and reconnect the supplies upon every change of occupier-hardly convenient for the occupier, nor a sensible use of resources.

phillw

macman wrote: »

The deemed contract method has been in operation for about thirty years now-the alternative would be to disconnect and reconnect the supplies upon every change of occupier-hardly convenient for the occupier, nor a sensible use of resources.

As the company you sign up to purely handles billing and customer service and the actual supply is handled by the same distributor no matter who you sign up with, there is no reason why you would need to disconnect supplies. You don't get different electricity or gas when you switch. It really makes no sense that you can't just sign up with a new supplier when you move in and give them the meter reading and just give them the meter reading at the point you took over the property, but sometimes our systems don't make much sense.

https://www.ofgem.gov.uk/information-consumers/business-consumers/switching-your-energy-supplier

I would definitely sign up to the cheap energy club. It can estimate your usage and will suggest the cheapest tariff, which if you do it in the next week will be one of the market beating collective switches.

If you personally haven't signed up for a contract then there is absolutely no way they can force you to stay with them and it's likely you can get a better deal with the cheap energy club than you can with the incumbent supplier.

footyguy

nic_c wrote: »

Just bought a house (ftb) and got a letter from the supplier saying there is an existing contact with the house and we have to continue with it. Surely the contract was with the previous owners and we should be able to choose suppliers? I realise we'd pay until switchover, but can they enforce a contract we haven't agreed to our know anything about

If in doubt, you should discuss this with your solicitor.

Your solicitor should have investigated and advised you of any additional obligations you were letting yourself in for by purchasing the property.

As you say, and as others indicate, usually you use the existing supplier. Either you argree a tariff with them, or they will charge you on their demmed tariff (usually their expensive, standard tariff for residential customers). Once you set up an account with the existing supplier, you are free to switch supplier but watch out for any early exit fees ... but their won't be any on their expensive standard tariff.

undaunted

If you use the supply, rightly or wrongly, you will be considered to have entered into a deemed contract. This does not however mean that you cant still then switch to the supplier of your choice.

Nada666

You aren't just an ftb - you are also a first-time-householder. How have you avoided being responsible for such bills previously? Same situation applies when renting.

Cardew

phillw wrote: »

As the company you sign up to purely handles billing and customer service and the actual supply is handled by the same distributor no matter who you sign up with, there is no reason why you would need to disconnect supplies. You don't get different electricity or gas when you switch. It really makes no sense that you can't just sign up with a n

If you personally haven't signed up for a contract then there is absolutely no way they can force you to stay with them and it's likely you can get a better deal with the cheap energy club than you can with the incumbent supplier.

That is not correct; in fact nobody signs contracts these days.

The 'deemed contract' provision was laid down in the Gas and Electricity Acts. If you use any gas or electricity in the new property you have entered into a legally binding demeed contract with the existing supplier.
Macman summed it up correctly in Post 5. You have a point that it might not be necessary if everyone leaving and occuping a property religiously read their meters on the day of occupation/leaving - but pigs might fly.

undaunted

He / she is however correct that the supplier cannot force then to stay - in this case it appears the poster may have not been advised of that fact.


Deemed contract or not suppliers are supposedly obliged (not that anyone bothers enforcing this) to offer full details of the deemed contracts terms & alternatives, they should in theory also comply with other UK legislation re distance selling etc though in my view the very concept of the deemed contract is not properly compatible with this legislation