Domestic Supply via Micro-Business Contract - end of 12 month fixed

jonathangale

Hi, We have a domestic electricity supply to our home but it is delivered over a micro-business supply (property used to be commercial before we purchased it). We have had the supply for 7 years now and each year have agreed a 12 month fixed unit rate and signed domestic waivers etc.

Coming to the end of this 12 month period and unsurprisingly the proposed rates for next year are 4x the level of this year and above even the future October price cap rates so I asked about the price cap and my supplier said that it didn't relate to me as the supply was a micro-business. However, the Ofgem guidance on this seems quite clear (I would post the Ofgem link but as this is my first post it isn't letting me!) in that if the premises is residential and the supply is domestic (as I have confirmed and been accepted by the supplier each year) then the supply should be designated as "domestic" even if supplied over a business meter/supply.

I registered an official complaint with the supplier on this and without directly addressing the point, they said the price cap will not apply to "Extended Service Rates", only "Standard Variable Rates" and that the 12 month contract I signed ensures that only "Extended Service Rates" will be offered after the end of the 12 month contract and not "Standard Variable Rates". I have further questioned this and requested that I be offered a "Standard Variable Rate" so that it will be subject to the domestic price cap and any proposed government help and they have said that they will have to consult with their legal department and get back to me.

Does anyone have any experience in this situation? Am I within my rights to request a "Standard Variable Rate" be offered to me at the end of my 12 month contract rather than the "Extended Service Rates" which they say aren't covered by the price cap?

Many thanks in advance!

pochase

What does the contract you signed say?

Does the supplier even offer a domestic SVT tariff?

jonathangale

Yes, it's EDF, they definitely do. They just say it is not available to me even after the termination of a 12 month fixed. They are saying that only an Extended Service Variable rate applies which they claim is not covered by the price cap.

MWT

Is there any reason why you have not previously had the supply changed to domestic? ... is there something unusual about the metering arrangements?

jonathangale

No reason, just never knew it was an option. The property was surveyed during renovation and this particular meter installed. Initial dealings with EDF said because of the usage level, it needed to be a business contract and I just sign a Domestic waiver to confirm that the property is residential and the usage is domestic. I can't post the link here, but there is a clear article on Ofgem's site saying that these types should be classed as domestic and therefore subject to the price cap.

Had never been an issue before but with the new 12 month prospective offer being so high, I decided to look at how I get onto a variable rate to have the protection of the price cap and EDF are refusing to give me an option to get there which doesn't sound right to me?

macman

Possibly one for the Energy Ombudman, whose jurisdiction also covers micro-business consumers?

jonathangale

Ah, I didn't realise the Ombudsman was different to Ofgem. Have registered with them and had a look although same constraints as Ofgem in that have to have let the supplier have 8 weeks since official complaint and I have only raised this officially with them at the beginning of this week!

One of the reasons I came on here as don't want to sit about waiting until that time as my contract will expire in that time and want to know if I am likely to get the result I think I should or if I have missed something.

Thanks for all the help so far and grateful if anyone else has any further information!

MWT

jonathangale said:

..., but there is a clear article on Ofgem's site saying that these types should be classed as domestic and therefore subject to the price cap.

Can you just give us the name of the Ofgem article you have read...

jonathangale

MWT said:

jonathangale said:

..., but there is a clear article on Ofgem's site saying that these types should be classed as domestic and therefore subject to the price cap.

Can you just give us the name of the Ofgem article you have read...

Guidance on the classification of premises for the purposes of the standard conditions of the gas and electricity supply licences

MWT

jonathangale said:

MWT said:

jonathangale said:

..., but there is a clear article on Ofgem's site saying that these types should be classed as domestic and therefore subject to the price cap.

Can you just give us the name of the Ofgem article you have read...

Guidance on the classification of premises for the purposes of the standard conditions of the gas and electricity supply licences

https://www.ofgem.gov.uk/publications/guidance-classification-premises-purposes-standard-conditions-gas-and-electricity-supply-licences

Reading it now...

MWT

jonathangale said:

The property was surveyed during renovation and this particular meter installed. Initial dealings with EDF said because of the usage level, it needed to be a business contract and I just sign a Domestic waiver to confirm that the property is residential and the usage is domestic. I can't post the link here, but there is a clear article on Ofgem's site saying that these types should be classed as domestic and therefore subject to the price cap.

OK, so the Ofgem advice you link to suggests your supply should be classified as domestic, not that the supplier is obliged to offer a capped variable tariff over a microbusiness supply... which puts us back to where I came in, which is why hasn't this been changed to a domestic supply...

What type of meter do you have and what is your typical annual consumption?

If for example it is a 3-phase meter that doesn't preclude it being a domestic supply.

Many people take over former business premises and convert them to residential and have to have the supply reclassified as a result.