Business gas prices on residential property

_blueberry_

Hi,  I would like to understand my rights with respect to the below and would really appreciate any guidance. 

I purchased a property in November 2022 and was happy to accept a deemed residential contract for my gas supply as at the time very few suppliers swayed much from the energy price cap.  When reviewing my bills I later found out that I was being charged business rates as the previous owner was on a business tariff, not bound by the energy price cap.  I confirmed with the supplier that they had marked me down as a residential customer but still refused to charge me residential tariffs as the company (SSE energy solutions) do not have a domestic license.  Presumably if they did, they would simply switch me over and get any government rebate?  Quite frankly I don't understand their company structure as SSE (perhaps a seperate arm?) does provide domestic tariffs also.

Is it really reasonable to have a business tariff on a deemed contract for a domestic property?  Should my expectations or whats reasonably assumed not be a consideration? Are there any conditions for deemed contracts which would protect me from this situation?

A final point to consider - all letters were written to my personal name yet I had never given them this information.  Any correspondence was going to a empty property.  My assumption is that the previous owner had provided this information but I would be speculating.  As a contrast, the previous electricity supplier had requested my details from the previous owner and I had provided my correct name, address and email to be contacted via email.  I would also like to understand my rights here and whether I am due any compensation for the way they have gathered incorrect personal information and that any letters they may have send containing information regarding the above was sent to the wrong address.

Ofcourse I have now switched to another provider but have not yet closed the account as I dont want to overpay.  I am tempted to take this to the ombudsman but want to understand my rights first.

I appreciate your time and please let me know if any points require clarification!

user1977

_blueberry_ said:

A final point to consider - all letters were written to my personal name yet I had never given them this information.  Any correspondence was going to a empty property.  My assumption is that the previous owner had provided this information but I would be speculating.  As a contrast, the previous electricity supplier had requested my details from the previous owner and I had provided my correct name, address and email to be contacted via email.  I would also like to understand my rights here and whether I am due any compensation for the way they have gathered incorrect personal information and that any letters they may have send containing information regarding the above was sent to the wrong address.

I don't follow what your concern is here? You're on a deemed contract - how would that work if the supplier isn't allowed to know who's occupying the property? What loss have you suffered which requires compensation?

_blueberry_

My concern is that as a domestic customer I should be protected by the energy price cap, but as the company has put me on a business tariff, I am paying multiple times more.

I have the right to understand and accept how my personal data is used - I value my privacy.  In addition, if they had my correct correspondence details I would have queried the above sooner and therefore had owed them less prior to switching tariffs.

born_again

You need to be clear here.
Exactly what is the property?

You will have to exhaust suppliers complaint process before taking to ombudsman.

_blueberry_

It is a semi detached house on a residential street with nothing suggesting its a business.

The company has already put the case in deadlock so I should be able to take it to the ombudsman once I have understood my case.

user1977

_blueberry_ said:

I have the right to understand and accept how my personal data is used - I value my privacy.  In addition, if they had my correct correspondence details I would have queried the above sooner and therefore had owed them less prior to switching tariffs.

Had you given them your correct correspondence details? I'm not sure where you'd expect them to be writing to other than the property address, if you hadn't provided them with an alternative.

What loss have you suffered?

macman

The previous owner was presumably running a business from the property, or the property was formerly some form of commercial premises. You'll need to provide proof of it's current residential status, for which a copy of your C .Tax bill is usually sufficient.

Robin9

What rates are you paying ?

_blueberry_

The property was possibly rented out and previous owner may have decided to use a business gas supply (which they shouldn't have needed to).  There is absolutely no reason to believe that it should be treated as a business - it is a standard semi detached house.  The council tax is a residential one.  The supplier has accepted that its a domestic property, and I have this in writing - they are just refusing to charge domestic rates as they do not have a domestic license.  From a customers viewpoint, however, I dont see why I should be paying significantly more?  The question is whether you can have a deemed contract which is based on a misclassification?

The rates are £1 per day and £0.1594 unit cost (with the price cap at £0.28 per day and £0.10 unit cost).

Robin9

_blueberry_ said:

The property was possibly rented out and previous owner may have decided to use a business gas supply (which they shouldn't have needed to).  There is absolutely no reason to believe that it should be treated as a business - it is a standard semi detached house.  The council tax is a residential one.  The supplier has accepted that its a domestic property, and I have this in writing - they are just refusing to charge domestic rates as they do not have a domestic license.  From a customers viewpoint, however, I dont see why I should be paying significantly more?  The question is whether you can have a deemed contract which is based on a misclassification?

The rates are £1 per day and £0.1594 unit cost (with the price cap at £0.28 per day and £0.10 unit cost).

Most suppliers will penalise you if you terminate a business contract early -  does yours ?  At the end of the contract you can give 1 months notice - you are then free to contract to a different supplier .  Go to someone like BG or EDF who do both business and domestic

Those rates are not significantly high  - but you can do much better even as a buisness

MWT

_blueberry_ said:

The supplier has accepted that its a domestic property, and I have this in writing - they are just refusing to charge domestic rates as they do not have a domestic license.

They are not 'refusing' they simply cannot do what you ask as they are not legally permitted to supply electricity other than on a business tariff...

_blueberry_ said:

From a customers viewpoint, however, I dont see why I should be paying significantly more?  The question is whether you can have a deemed contract which is based on a misclassification.

Yes, you can be on a business tariff in a residential property and you willingly entered into the deemed contract when you moved in and started using energy. The supplier has no way of knowing the nature of your use, so it is not a 'misclassification' on their side.

You should have immediately started a switch to a residential supplier, any delay on taking that action was your choice, not the suppliers...

I'm not sure why you think there is a complaint to be made when it is your lack of action which has resulted in you remaining on a business supply...?