New shop being charged deemed rates for a full year.

bakkokay

Hello all,

I took on the lease for my shop in November 2024. On the first day I received the keys, I took a photo of all the building’s meters because the landlord didn’t know which one belonged to the shop. He also didn’t know who the energy supplier was.

I tried searching online to identify the supplier, but I couldn’t find anything because the shop is part of a larger building with multiple apartments that all share the same postcode. I was expecting the supplier to eventually contact me with a first bill so I could find out who they were.

They only contacted me two weeks ago and sent a very large bill demanding payment. When I asked why no bills were sent earlier, they said they were going through a system update.

I’m now trying to stop the deemed rates and move onto a contract rate, but they are refusing to offer me a contract or allow me to switch to another supplier until I pay the outstanding bill, which has built up through no fault of my own.

Any advice would be appreciated.

QrizB

Welcome to business energy, where you're assumed to be competent and to have access to professional advice.

Deemed energy contract rates apply whenever you take over a supply and don't enter into a contract at any other rate. The onus was on you, as tenant and business owner, to identify your meter and contact your incumbent supplier.

bakkokay said:

I’m now trying to stop the deemed rates and move onto a contract rate, but they are refusing to offer me a contract or allow me to switch to another supplier until I pay the outstanding bill, which has built up through no fault of my own.

Any advice would be appreciated.

Pay the deemed bill.

Before entering into a contract, make sure you understand it. Take independent legal advice if necessary.

tim_p

Does the meter serial number on the bill match what you think is your meter? Does the bill include matching readings?

Ayr_Rage

Taking over a lease without knowing all the material facts was quite frankly not the smartest thing to do.

The bill hasn't "built up through no fault of my own", your inaction for a year is a major part of the problem.

My advice is to do a sanity test to confirm you are connected to the meter for which you are being charged, then pay the bill using the funds that you have put by for the last 12 months in anticipation of the bill finally arriving.

Then you can look for a better tariff.

Scot_39

So Nov 24 - so hardly really a "new shop".

You have had 12 months to sort out one of the major ongoing costs for many small family shops / businesses - and even if not billed - I assume you have been setting the money aside to do so.

And even if you were protected by domestic protections like back billing as a micro business(*) - thats only older than 12 months - so again would be fully liable.

And would more than likely be subject to you having registered an account and provided accurate meter readings in any case.

 

Its now been 12 months - and you now have presumably a bill - and probably based on estimates - unless your meter reports use automatically.

(*) You might well qualify as a micro business - and be protected by a few more protections than large businesses - micro-businesses share many of the same issues when comes to energy contracts.  

They do not - according to this article on CA - operate like domestic contracts.

https://www.citizensadvice.org.uk/consumer/energy/energy-supply/your-small-businesss-energy-supply/your-small-business-cant-afford-its-energy-bills/check-if-your-business-is-a-microbusiness/

And with stated energy thresholds

https://www.smart-energy.uk/ofgem-backbilling-12-month-rule

Notice you have failed at the very first hurdle on the CA guide

"Your supplier should work out if you’re a microbusiness or a small business when you enter a contract with them"

It is - as above - up to you as the owner to sort out your energy - gas and/or electric - or both - with a supplier / suppliers - like domestic they can be different.  Including finding out who the deemed supplier(s) was / were.

Your agent should have provided the information ideally - but when not - then like domestic consumers - you would have to search for them and contact them directly.

But as above - if faced with an array of meters - the sort of sanity checks advised for flat owners in a similar situation would seem an appropriate series of checks - a consumption sanity check based on cutting or running a large amount of power consumption - and checking the units registered or IMP light frequency - and a check of the serial numbers against the issued bill - would be highly advisable now.  There might even be an isolator you could use to cut your power only - if safe to do so.

You might also - at a stretch - need to be wary of primary and secondary metering - if the landlord is or was -  billing flats off of one single incoming supply - to the different flats (assuming say just a couple of units above the shop and not a major block - and that you are not getting their bill for the primary for the building.   

So if understand electrics have a look at all of meters for independent incoming DNO fuses for the flats above. And again if in doubt - get an electrician in to check.

bakkokay

tim_p said:

Does the meter serial number on the bill match what you think is your meter? Does the bill include matching readings?

Thank you for your attention to this matter.
The meter serial number matches my meter. The initial bill is based on estimated readings. 

MWT

bakkokay said:

tim_p said:

Does the meter serial number on the bill match what you think is your meter? Does the bill include matching readings?

Thank you for your attention to this matter.
The meter serial number matches my meter. The initial bill is based on estimated readings. 

Then provide accurate readings for the period and pay the bill.

The deemed tariff rates are correct as you failed to enter into a contract when you moved in.

QrizB

Just for our info, which supplier have you been billed by and what rates are they charging on their deemed tariff?

tim_p

bakkokay said:

tim_p said:

Does the meter serial number on the bill match what you think is your meter? Does the bill include matching readings?

Thank you for your attention to this matter.
The meter serial number matches my meter. The initial bill is based on estimated readings. 

How do the readings on the meter compare to the estimate?  Is the meter reading higher or lower than the estimate?

WiserMiser

Have you done the Meter Sanity Test to make sure it's the correct meter?

https://forums.moneysavingexpert.com/discussion/comment/78850409/#Comment_78850409

Robin9

Now you know the actual meter reading *from your photo) and the actual recent reading what is your annual consumption?