British Gas Deemed Contract Bill of 5 years

ganda2000

I purchased a small area of land next to a property that I own.  It had been unused for several years, was very overgrown and contained a small derelict outbuilding.  At the time of purchase I was unaware that there was an electricity supply and as I did not require a supply did not look into this any further.  Fast forward 5 years, I received a letter from British Gas welcoming me as a new customer, which I immediately responded with a letter to British Gas.  A short while afterwards a large bill for around £4000 to cover the standing charges for supply of electricity to this building.  No energy had been consumed in this time and this was just for a standing charge.  I raised a complaint with British Gas and eventually they gave me a deadlock letter with no action required from them.  I further pursued the complaint with the Energy Ombudsman who awarded this in favour of British Gas.  Unfortunately as I did not find out if I had an electricity supply at the time of purchase and then notify the energy supplier, I am liable for standing charges at deemed contract rates.  I have now paid the bill in full, paid to have the meter removed and paid late payment charges that were issued whilst the complaint was being handled.

Do I pursue this further or just put it down to an oversight on my part and accept the consequences?  I believe that there should have been some responsibility for British Gas to contact me earlier than 5 years after purchase.  I also believe that the deemed contract rates are extortionate for a derelict building with no energy use.  No meter readings or any visit to the building has been made during my ownership.  Surely the revenue that British Gas have generated from me is unduly onerous, in terms of the costs incurred by British Gas to supply electricity to the building.   Also, I have never received a deemed contract in writing from British Gas.

Any thoughts or advice would be most appreciated.

Thanks

 

TheMilkmansDad

in short - I'd move on. Onus would have been on you from the offset to check the supply and register. Out of curiosity - was it a Business or personal tariff/account?

DE_612183

Was there anything declared in the TA1 ( I think that's what it's called ) form when you bought the property?

Did you also ask about back-billings rules?

How did BG find out about the supply - any ideas?

ganda2000

DE_612183 said:

Was there anything declared in the TA1 ( I think that's what it's called ) form when you bought the property?

Did you also ask about back-billings rules?

How did BG find out about the supply - any ideas?

I asked about back billing rules.  They don't apply as I did not notify the energy supplier.  There was nothing in the purchase paperwork to suggest an electricity supply, but looking back I should have notified the energy supplier when I eventually gained access to the building (it was very overgrown!) and realised that there was an electricity meter. 

ganda2000

TheMilkmansDad said:

in short - I'd move on. Onus would have been on you from the offset to check the supply and register. Out of curiosity - was it a Business or personal tariff/account?

Thanks that is my thought although very frustrating and a payment which I could not really afford.  I was given a business account for it. 

ganda2000

DE_612183 said:

How did BG find out about the supply - any ideas?

Land registry, I assume

MWT

ganda2000 said:

Also, I have never received a deemed contract in writing from British Gas.

That is why it is called a 'deemed contract', it does not require a signature or even a copy of the contract being provided.

I am assuming from the value that this was a business supply?

There are some obligations on the energy supplier, but for the most part, if you failed to contact them upon purchasing the land then there isn't a lot that they are obliged to do as the onus is on you to reach out to them in the first instance.

The details you would have received during the purchase process for the land should have disclosed the existence of the electricity supply, if not then you might have a case against the seller, but no idea about the chances of anything material 5 years after you took possession.

ganda2000

MWT said:

ganda2000 said:

Also, I have never received a deemed contract in writing from British Gas.

That is why it is called a 'deemed contract', it does not require a signature or even a copy of the contract being provided.

I am assuming form the value that this was a business supply?

There are some obligations on the energy supplier, but for the most part, if you failed to contact them upon purchasing the land then there isn't a lot that they are obliged to do as the onus is on you to reach out to them in the first instance.

The details you would have received during the purchase process for the land should have disclosed the existence of the electricity supply, if not then you might have a case against the seller, but no idea about the chances of anything material 5 years after you took possession.

Thanks MWT.  Yes it was a business supply.  I realise that a deemed contract is applicable without seeing it.  However as stated by OFGEM "make reasonable endeavours to provide customers on a deemed contract with the principal terms of the contract"

MWT

ganda2000 said:

MWT said:

ganda2000 said:

Also, I have never received a deemed contract in writing from British Gas.

That is why it is called a 'deemed contract', it does not require a signature or even a copy of the contract being provided.

I am assuming form the value that this was a business supply?

There are some obligations on the energy supplier, but for the most part, if you failed to contact them upon purchasing the land then there isn't a lot that they are obliged to do as the onus is on you to reach out to them in the first instance.

The details you would have received during the purchase process for the land should have disclosed the existence of the electricity supply, if not then you might have a case against the seller, but no idea about the chances of anything material 5 years after you took possession.

Thanks MWT.  Yes it was a business supply.  I realise that a deemed contract is applicable without seeing it.  However as stated by OFGEM "make reasonable endeavours to provide customers on a deemed contract with the principal terms of the contract"

That is the part that requires you to let them know that the ownership has changed as without that they would have no idea that you existed...

Ectophile

This is going to cause loads of arguments, but here goes...

Schedule 6, section 3, of the Electricity Act https://www.legislation.gov.uk/ukpga/1989/29/schedule/6 says

(1)Where an electricity supplier supplies electricity to any premises otherwise than in pursuance of a contract, the supplier shall be deemed to have contracted with the occupier (or the owner if the premises are unoccupied) for the supply of electricity as from the time (“the relevant time”) when he began so to supply electricity.

(2)Where—

(a)the owner or occupier of any premises takes a supply of electricity which has been conveyed to those premises by an electricity distributor;

(b)that supply is not made by an authorised supplier; and

(c)a supply of electricity so conveyed has been previously made by an electricity supplier,

the owner or occupier shall be deemed to have contracted with the appropriate supplier for the supply of electricity as from the time (“the relevant time”) when he began to take such a supply.

Your argument can be that you have never "taken a supply" of electricity.  You are therefore not a deemed customer.  So without any contract, they have no basis on which to bill you.

Several people have successfully used this argument to cancel a bill.

I know of no legal precedent to back this up.  And when it has been brought up on this forum, nobody has been able to produce any precedent.

QrizB

Ectophile said:

This is going to cause loads of arguments, but here goes...

...

I know of no legal precedent to back this up.  And when it has been brought up on this forum, nobody has been able to produce any precedent.

From posts on this forum, the Energy Ombudsman has ruled in both directions at different times.

Which isn't particularly helpful either!