LOA expired BEFORE extortionate new contract started

swindk01

Long story short but it transpires that business partner agreed a switch (electricity only) via broker 2 years PRIOR to existing contract coming to end in Oct '24. This was in 2022 during COVID and the rates are extortionate - over £1,000 per month for micro-business with very minimal usage - this is over 3 times previous cost. We have just realised that both the business name and postcode are incorrect on the LOA he signed and it had expired before the new contract even started. Does this give us grounds to exit this crippling contract with the supplier without a huge penalty?

Qyburn

swindk01 said:

the rates are extortionate - over £1,000 per month for micro-business with very minimal usage

You're not giving a "rate", nobody can say whether or not that's excessive without knowing how  much energy you're using. What's the price per kWh and standing charge per day?

MWT

swindk01 said:

Long story short but it transpires that business partner agreed a switch (electricity only) via broker 2 years PRIOR to existing contract coming to end in Oct '24. This was in 2022 during COVID and the rates are extortionate - over £1,000 per month for micro-business with very minimal usage - this is over 3 times previous cost. We have just realised that both the business name and postcode are incorrect on the LOA he signed and it had expired before the new contract even started. Does this give us grounds to exit this crippling contract with the supplier without a huge penalty?

Nothing in what you've said so far guarantees that you have any option to get out of the contract as it is perfectly possible to enter into a verbal agreement as a business that does not require a written and signed agreement.

Also just because the original authority has expired, it doesn't mean that it invalidates an agreement to enter into the new contract at a point in the future...

As a micro-business you do have access to the Ombudsman but I don't know how they will respond to a complaint that at the start precedes the date that they began dealing with agency issues for micro-businesses, but you can ask...

The fundamental question though is what is the basis of your complaint?

swindk01 said:

Long story short but it transpires that business partner agreed a switch (electricity only) via broker 2 years PRIOR to existing contract coming to end in Oct '24.

If this is a statement of fact then why would you believe that the contract can be avoided? It sounds like your partner had an intent to form a contract to enter into a supply of energy at a fixed price and the broker has arranged that for you as agreed...