Energy supplier for new build property

hedgehogs_2

Hi
We are in the process of buying a new build which wont be completed for about 9 months. The sales person mentioned in passing that when we move in we will be tied for three months to British Gas, Swalec and BT for our energy and phones. I didn't think this was allowed. Has anyone any ideas if this could be true please. I don't want to contact the developer until I have the correct info.

naedanger

hedgehogs wrote: »

Hi
We are in the process of buying a new build which wont be completed for about 9 months. The sales person mentioned in passing that when we move in we will be tied for three months to British Gas, Swalec and BT for our energy and phones. I didn't think this was allowed. Has anyone any ideas if this could be true please. I don't want to contact the developer until I have the correct info.

I don't know the answer for certain but it seems unlikely to me that the house builder can sign you up to a contract with a utility supplier which you cannot cancel without penalty upon entry.

They do have the right to sign up with suppliers, and you will need to accept them on entry, but as far as I am aware you could then initiate a switch.

However if you have not completed the purchase should you not just tell the sales person your issue. I would have thought they would be very helpful.

hedgehogs_2

Thank you
next time we speak to the sales consultant we will try and get it sorted. This is just one of many questions as depending who is in the office we get told different things!

[Deleted User]

It will be the same as every other new build estate with developers doing deals with suppliers. You move in, register then are free to initiate a switch 3 weeks later. The advantage to this is that most people stay , through laziness, with the same supplier for years in new builds. Thats the Ofgem rules at the moment. I can see no benefit to any developer locking you into the supplier for 6 months.
My advice is to stay with British Gas in the form of Sainsurys Energy. The only other two I have much faith in is Eon and EDF.

footyguy

hedgehogs wrote: »

Hi
We are in the process of buying a new build which wont be completed for about 9 months. The sales person mentioned in passing that when we move in we will be tied for three months to British Gas, Swalec and BT for our energy and phones. I didn't think this was allowed. Has anyone any ideas if this could be true please. I don't want to contact the developer until I have the correct info.

I'm sorry, I cannot assist you as to whether this story is true or not as I wasn't there.

In relation to gas & electricity, you will be permitted to switch energy suppliers as soon as you have registered with the existing suppliers.
I would say that to have a different gas & electricity suppliers at a new build is quite rare nowadays, as the developer usually does a deal with a single supplier.(assuming this is part of a development, not a one off build)

If you want a phone, I believe you have to arrange this contract yourself. (If you ask the builder nicely, they usually allow BT, or whoever you contract with, access to the property to enable the connection so that it is all working when you move in)
Check the terms as BT do offer some good deals if you agree to a 12 or 18 month contract. (But other telephony providers may still be cheaper)


Edit: Btw 9 months before anticipated completion is a heck of a time. It sounds like they are not even going to start it for several months, so quite surprised they have already sorted out suppliers (unless, again, this is part of a big, ongoing development) Surprised they have even released properties for sale this far in advance. Hope you've got all your finances sorted, as most buyers would not commit to buying something so far in advance - anything could happen to the market in 9 months ... and with the planned completion not being until 9 months, who knows when it will actually be completed
(I remember a few years back, my uncle was buying a newbuild and that got delayed a long, long time due to a brick shortage). The developer, if a major house builder, will not agree to a long stop on the contract ... and your solicitor should warn you abut this, especially as you will be signing the contract before the first spade even digs the ground.
If you are selling something, then as I say, most buyers will not be prepared to wait this long to acquire ownership, and if they have even a half-decent solicitor, the solicitor will not agree to exchange contracts without a long-stop date in your sales contract. You end up taking a big risk - it could be you will have no home for an indeterminate amount of time.