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House purchase - supplier says have to take their product

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  • Cardew
    Cardew Posts: 29,063 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    Agreed that the new occupier can instigate a switch immediately.

    If there was an issue of compatibility, it would take a simple amendment of any law to ensure that the deemed contract provision remained.

    That deemed contract provision works entirely in favour of the customer and ensures we can move into a property with gas/electricity connected.
  • undaunted
    undaunted Posts: 1,870 Forumite
    edited 12 September 2015 at 11:45AM
    Whilst it may be argued that there are benefits to consumers is this in reality really just a cost saving and revenue protection measure by suppliers? (Who exactly had any difficulty in using the energy supply prior to deemed contracts & if the suppliers didn't know someone had moved out / in when / why would the supply ever have been disconnected?)

    Suppliers have been accused of misusing various license conditions etc in the past (eg on switching).

    Changes in law are usually neither quick or easy. Ofgem determined the transfer objection to be unfair years ago and proposed changing it. As I recall either agreement by suppliers or alternatively a change in the MRA would have been needed for them to impose such a change. Result no change years later.

    As to compatibility & any failure to provide the terms, conditions and options to the customer promptly how do you see a "deemed contract" (particularly if then combined with a transfer objection & financially restricted customer) as being compatible with the Unfair terms in consumer contracts & distance selling regulations and does the agreement by the big boys and the imposition on all suppliers of the transfer objection policy constitute an unlawful third party agreement for example?
  • Nada666
    Nada666 Posts: 5,004 Forumite
    edited 12 September 2015 at 12:40PM
    undaunted wrote: »
    Whilst it may be argued that there are benefits to consumers is this in reality really just a cost saving and revenue protection measure by suppliers?
    []
    As to compatibility & any failure to provide the terms, conditions and options to the customer promptly how do you see a "deemed contract" (particularly if then combined with a transfer objection & financially restricted customer) as being compatible with the Unfair terms in consumer contracts & distance selling regulations and does the agreement by the big boys and the imposition on all suppliers of the transfer objection policy constitute an unlawful third party agreement for example?
    What sort of alternative do you suggest?

    How do you avoid no-one paying for any fuel through the simple expedient of not telling anyone? (Which, as far as I can see, is what you propose.)

    (The only difference is now there are multiple tariffs. If there is a problem paying £XYZ there will be a problem paying 75% of £XYZ.)
  • Cardew
    Cardew Posts: 29,063 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    undaunted wrote: »
    Who exactly had any difficulty in using the energy supply prior to deemed contracts & if the suppliers didn't know someone had moved out / in when / why would the supply ever have been disconnected?)

    If the out-going occupant was stupid enough not to tell the Gas/Electricity Board they were moving, then they would be liable for the bills in any dispute.


    Before the deemed contract provision, the supply could be cut off - and often was - unless the incoming occupant made arrangements to pay future bills.
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