Re: 14 day cooling off denied: Cafe & flat BES problem.. question..

Hi

Can anyone give advice? First 2 questions are:

1) Does this para (below) apply to verbal contracts for the commercial supply of gas & elec. Contract agreed over the phone on 21 March 2016 in response to a cold call from a broker (contract with BES).

"When you sign up for a new energy tariff online, over the phone or at your doorstep, you must be given at least a 14-day cooling-off period, which means you can cancel within 14 days. At the time you sign the contract, you must be given written notice of that cooling-off period. If they don't, the contract isn't enforceable.

What the rules say: The Consumer Contracts Regulations (which apply to any goods and services worth more than £42) say you have to be given written notice about your right to cancel the contract within the 14-day cooling-off period (some suppliers give more time). If it doesn't, the contract is not enforceable at any time and you may be able to get compensation"

2) Within 24 hours of agreeing the contract (no paperwork yet received) I telephoned and emailed the broker and BES to cancel the contract. Broker said application hadn't been submitted (it had and BES were already transferring it over).

After agreeing the contract on 21 March I discovered that the electricity meter that the broker called about is actually the meter for the RESIDENTIAL flat, not the cafe (BES don't do residential). Is this sufficient to stop the contract if the 14 day cancellation right doesn't apply? BES say the meter is a commercial type meter and therefore the contract stands, even if the property it supplies is residential.

The contract is a market tracker (not sure what this is based on) for 5 years, no cooling off period, penalty is £100 & 6 months cost of supply to leave.

We own both the cafe and the flat. Any advice welcome. Thank you

Comments

  • naedanger
    naedanger Posts: 3,105 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Bear7 wrote: »
    Hi

    Can anyone give advice? First 2 questions are:

    1) Does this para (below) apply to verbal contracts for the commercial supply of gas & elec. Contract agreed over the phone on 21 March 2016 in response to a cold call from a broker (contract with BES).

    "When you sign up for a new energy tariff online, over the phone or at your doorstep, you must be given at least a 14-day cooling-off period, which means you can cancel within 14 days. At the time you sign the contract, you must be given written notice of that cooling-off period. If they don't, the contract isn't enforceable.

    What the rules say: The Consumer Contracts Regulations (which apply to any goods and services worth more than £42) say you have to be given written notice about your right to cancel the contract within the 14-day cooling-off period (some suppliers give more time). If it doesn't, the contract is not enforceable at any time and you may be able to get compensation"

    2) Within 24 hours of agreeing the contract (no paperwork yet received) I telephoned and emailed the broker and BES to cancel the contract. Broker said application hadn't been submitted (it had and BES were already transferring it over).

    After agreeing the contract on 21 March I discovered that the electricity meter that the broker called about is actually the meter for the RESIDENTIAL flat, not the cafe (BES don't do residential). Is this sufficient to stop the contract if the 14 day cancellation right doesn't apply? BES say the meter is a commercial type meter and therefore the contract stands, even if the property it supplies is residential.

    The contract is a market tracker (not sure what this is based on) for 5 years, no cooling off period, penalty is £100 & 6 months cost of supply to leave.

    We own both the cafe and the flat. Any advice welcome. Thank you

    The answer to your first question is unfortunately that a cooling off period does not apply to business to business contracts. If the supply is in respect of a micro business then see the following link:
    https://www.ombudsman-services.org/downloads/Microbusinesses_factsheet_updatedApril2014.pdf

    On the second question I believe what matters is whether or not the supply they have taken over is for residential or business use. If it is a residential supply then BES should not in my view take over the supply.
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