Debit left on the bust provider account. But is it really simple as this?

Mishomeister

There is a debit balance outstanding in the PFP energy account the most of which I dispute. But probably there will be a couple of hundred pounds that I do indeed own them.

Now, the thing is that by them ceasong trading and not being able to honour our contract until the end of the fixed term I beleive they have breached the contract although appreciate that unwillingly.

So do I have any leg to stand on if I go backl to them and ask them to compensate the difference in money I will have to pay to BG until the end of the term of my fixed deal?

I obviously don't have any hopes of them paying any physical money but this could potentially reduce the amount I own to them if not completely wipe it out...

MWT

Short answer is no, the contract terms usually include termination if they lose their supply license, so they did not breach the contract, it has simply terminated for one of the allowed reasons.

[Deleted User]

Mishomeister said:

There is a debit balance outstanding in the PFP energy account the most of which I dispute. But probably there will be a couple of hundred pounds that I do indeed own them.

Now, the thing is that by them ceasong trading and not being able to honour our contract until the end of the fixed term I beleive they have breached the contract although appreciate that unwillingly.

So do I have any leg to stand on if I go backl to them and ask them to compensate the difference in money I will have to pay to BG until the end of the term of my fixed deal?

I obviously don't have any hopes of them paying any physical money but this could potentially reduce the amount I own to them if not completely wipe it out...

YES, PfP has breached the contract with you and the other many thousands of consumers that it had on its books. Putting to one side the Ofgem Consumer Levy, you are an unsecured creditor of a failed company. Like all unsecured creditors, you are at the back of the queue when it comes to any form of repayments or compensation. Organisations such as Ofgem, HMRC, energy wholesalers (secured creditors) have first call on any assets after the Administration has recovered its own costs. YES, you could ask the Receiver to compensate you for a breach of contract but we can all guess what the reply will be.

As normal supplier licence conditions can no longer be applied to the failed supplier, then if the Receiver says no your only recourse is to take the Receiver to Court.

MWT

[Deleted User] said:

YES, PfP has breached the contract with you and the other many thousands of consumers that it had on its books.

Just as an FYI, you'll find this language as a standard part of pretty much every suppliers T&Cs...

12.2.4 & 12.3 cover termination, not breach, in current circumstances...

[Deleted User]

It makes absolutely no difference to the OP but when is a contract termination deemed to be a breach?

Termination for breach of contract requires a repudiatory breach of contract. ... Conduct is repudiatory if it “deprives the innocent party of substantially the whole of the benefit”, intended to be received for performance of the obligations under a contract.

rp1974

As per 12.2.2,You did not pay what you owe us when it was due,haven't you,by your own admission breached the contract also,OP?.

MWT

Dolor said:

It makes absolutely no difference to the OP but when is a contract termination deemed to be a breach?

Termination for breach of contract requires a repudiatory breach of contract. ... Conduct is repudiatory if it “deprives the innocent party of substantially the whole of the benefit”, intended to be received for performance of the obligations under a contract.

You are looking at the wrong end of this as far as I can see as that describes the right to terminate because of a repudiatory action, where as what the OP is trying to hold out is that termination for a reason envisaged and incorporated into the agreement constitutes a breach which is rather different.

So for example if the contract permitted termination on 3 months notice, giving such notice 1 day after the contract started would not constitute a repudiatory breach even though it “deprives the innocent party of substantially the whole of the benefit” ... ... but for example, failing to fix a broken meter that had ceased supply could constitute a repudiatory breach...

Mishomeister

rp1974 said:

As per 12.2.2,You did not pay what you owe us when it was due,haven't you,by your own admission breached the contract also,OP?.

Having debit on you energy account is not a breach. The breach would be a refusal to pay the amount owed.

rp1974

Mishomeister said:

rp1974 said:

As per 12.2.2,You did not pay what you owe us when it was due,haven't you,by your own admission breached the contract also,OP?.

Having debit on you energy account is not a breach. The breach would be a refusal to pay the amount owed.

Ok,maybe didn't put it very well,try again,there is no contract to be breached by the supplier or yourself,due to the 12.2.4 and 12.3 clauses previously mentioned.
Had there been then yes they would've been allowed to end it due to your self admitted non-payment,ie not when it was due.
That ships sailed now so until BG get around to sorting your account there's not much you can do,bottom line if you owed PFP money,that will now be due to be paid to BG.