"Business rates" in domestic dwelling

Turnanun

Hi everyone,

Recently moved into a house, which in the deeds is forbidden from being a business. However, previous landlord (whose letters we still recieve... "Final request" etc) has registered with a business energy company, who are refusing to release us. We're not in a contract with them, we're on "Out of contract rates". We have provided them with a council tax bill (for a domestic dwelling, not paying business rates. The council records show no business EVER being registered here) but still they're just dragging us through their "complaints procedure"... There's nothing to complain about (other than their obstinate attitude) We just want them to release us and to be with a domestic energy supplier!

Anyone have any advice? Useful tips?

CIS

Properties can in principal be split between business rates & council tax ('composite properties') but for working from home, a de minimus use (for example a person working from home by computer) would not normally trigger the disaggregation to form a composite property.

Odd that he would use a business energy contract for a property which had not been sufficient to warrant business rates - unless he hadn't told the council...

Craig

[Deleted User]

You have done the correct thing in getting the council tax registered as a domestic. From what i understand through working with BG is that you supply a copy of your council tax to the supplier as proof you are now a domestic user and not a business.
Its not that uncommon to see a private house/flat registered as a business. I go to quite a few owned by big rental companies who I suppose prefer that for some benefits in a tax allowance.
Why can t you just attempt to switch as legally you are not in contract and now registered with the council as a domestic property. Your present supplier would then try and justify a block on the switch but they may well struggle to come up with a valid reason and they wont be able to stop it.

dogshome

Business Energy supply really is a swim in Shark infested waters, and "Out of Contact" tariffs are a feeding frenzy

Furnishing this supplier with your domestic Council Tax bill was exactly the right thing to do, but like Sharks, these companies are loathe to lose their prey

Take a guess at your annual Gas/Elec consumption and punch it into a couple of comparision sites, then WRITE to the present supplier telling them you hold them responsible for any upward differential between what they are chargeing you, and an offered normal domestic tariff .
Most comparision sites will ask for details of who your present supplier is and the tariff you are on, and won't progress if it's a business supplier.
So just say for example "EDF Blue Price Promise November 2016", you are after just the current prices per KWh and Daily Standing charges from a range of suppliers.

Cardew

I addition to the above, presumably you are paying 20% VAT instead of 5%??

When it is sorted you should be able to reclaim.

spiro

Cardew wrote: »

I addition to the above, presumably you are paying 20% VAT instead of 5%??

When it is sorted you should be able to reclaim.

Plus 5% Climate Change Levy.

Turnanun

Yeah, my assumption was that it was rented by the former owner, but under a 'property management company'... he was incredibly stingy thus probably involved in some tax-dodging/efficiency.

And yes, we've tried to switch. Leaving our old house, we were told Sainsbury's Energy would be half the price (for the old house). So, we moved, rang up Sainsburys who said you just need to get your old supplier to release you.

Cue... no release because... well, actually they haven't given a valid reason! They keep saying 'as tenants, you need to', and refuse to listen to the fact that we bought and own the property...

So would a recommendation be 'ring up sainsburys (or whichever energy provider) again and tell them the situation?'

dogshome

#4 "......but like sharks, these companies are loathe to lose their prey"

You don't say how long ago you sent a copy of your Domestic Council tax bill to the present supplier - This is imortant - Allowing a reasonable 7 days for them to process this information, they should have released you to Switch a Domestic supplier a week later

Normally in these situations sending a copy of a Domestic CT bill is enough, but it seems this particular Shark is determined to keep feeding, and unfortunately, because it's a business tariff the Ombudsman will not help you

The route you have is the Small Claims Court, so;
1) Research Sainsbury's current 'best' tariff listing it's price per Kwh & Daily Standing Charge.

2)Send them copies of your purchase documents for the house together with yet another copy of the CT bill, and Sainsbury's tariff., with aletter pointing out that you hold them responsible for the cost difference between the Sainsbury tariff and theirs from XX date ( XX being 7 days after you sent them the CT bill )

3) With this letter, include a 'Letter Before Action' For template see this site

BendyWill

reading into this it looks like the energy switch guarantee (a new setup by all the major energy suppliers)
should handle this for you, as one of the rules is:

'Under the Energy Switch Guarantee, in the unlikely event of any problem occurring, you have the reassurance that your new provider will work to resolve any issue swiftly and efficiently'

source (energyseeker.co.uk artical at the bottom of the page)
sorry can't share direct link



and I know sainsburys energy is part of this scheme
so i guess i would start the switch with a supplier that is in the scheme and pass the responsability to them! if they try and fob you off you can remind them about this guarantee!!

hope this helps

dogshome

Unfortunately the Energy Switch gaurantee doesn't apply to this OP as it's designed to police transfers between domestic suppliers.
If this greedy Business Supplier keeps on insisting the OP should be on a business contract and refuse to organise the release of the account to domestic status, Sainsbury's can do nothing .

The OP is in this situation because during privatisation, a buildings change of use from Business to Domestic was never considered and there are no specific rules to cover it - Other than Business Suppliers are not allowed to supply the Domestic market.

Turnanun
Whilst Ofgem, the regulator do not accept or deal with complaints, I think in your case it it's worth a go.
Give them a bell and ask who you should send copies of your paperwork to, together with transcript of phone calls - You will probably have to be persistant - but be polite in hammering home the point that you are a Domestic customer who is being forced to go to the Small Claims court simply to get onto a Domestic tariff.
Ofgem issue Business Supplier licenses, so a quiete word from them would work wonders.

It can work, some time ago I wrote to Ofgem about a sales practise being operated by one of the Big6, nothing appeared in public but the company stopped doing it within a week

BendyWill

Just being noesy did you get this resolved?