Deemed contract with British Gas

[BristolBiz]

Apologies if this has been asked before.

We've been trading out of our current premises for 5 years.

Last year I received a gas bill for about £250, we have never used gas so I got in touch and told British Gas this.

The bills continued, I've just been in touch with them again & now they explain I'm in a deemed contract, with standing charges of £250 a quarter.

At no stage have I been offered a contract.

Does anyone know of the best way out of this or do I just have to bite the bullet?.

It'll be the best part of £1500 by the time this finishes - for nothing!!

 

[Newchodge]

Ask them to explain, precisely, how you can be in a deemed contract when you have never used any gas. Unless, of course it is for electricity?

 

[NickGrogan]

If you have a live gas meter then you will have to pay the standing charge, even if you don't use any gas. But £250 per quarter is very very high, suggesting either a large gas supply, which you'd probably know something about, or a mistake somewhere.

If you want to email a copy of one of the bills to [email protected] I'll happily take a look.

 

[BristolBiz]

Ask them to explain, precisely, how you can be in a deemed contract when you have never used any gas. Unless, of course it is for electricity?

Apparently "new" rules have come into force within this time, giving BG the right to start a contract for gas supply where ever there's a meter installed.

They've opted to try for an eye watering standard charge because they can!

The only way out (they say) is to remove the meter, at my cost, but I'll still be liable for the standing charges.

Just seems wrong to me.

 

[NickGrogan]

This isn't a new rule, it's been in force for many years.

The deemed charges are high, but not £250 per quarter, unless you have a very large meter, which you would certainly know about.

http://www.britishgas.co.uk/content/dam/bgbusiness/documents/schedule_gas.pdf

Happy to discuss anytime.

 

[Newchodge]

How come British Gas get the money? what about the other suppliers who are also not supplying the premises?

 

[obscure]

I have been working very hard to ensure I don't supply anything at all to the OP. I think they should pay me too.

 

[NickGrogan]

How come British Gas get the money? what about the other suppliers who are also not supplying the premises?

If there is a meter at the site, and BG are the registered supplier, then they are being charged by Transco for that meter. These are the charges (along with a significant premium as they are on a deemed contract) that are being passed on to the customer.

If the meter was removed, there would be no charges from Transco, and so nothing to pay.

If another supplier was the registered supplier, they would be billing the business.

If there was a contract in place, the costs would be much lower.

 

[NickGrogan]

I have been working very hard to ensure I don't supply anything at all to the OP. I think they should pay me too.

If a company took over a site where you had equipment installed, and they said that we're not using it, but we want to keep it, you'd charge them right?

It's the same situation.

 

[john1989]

The equipment installed is not the choice of the new lessee. If there is no use, and BG do not wish to be charged by Transco, BG should arrange for it to be removed.

If I start renting a house and notice that the previous tenant has left a Sky box in the attic, that doesn't give Sky the right to start charging me a standing charge for it.

Sounds like a rip off to me.

 

[NickGrogan]

The equipment installed is not the choice of the new lessee. If there is no use, and BG do not wish to be charged by Transco, BG should arrange for it to be removed.

If I start renting a house and notice that the previous tenant has left a Sky box in the attic, that doesn't give Sky the right to start charging me a standing charge for it.

Sounds like a rip off to me.

If you rent a house, and the lease says that sky is installed and working and ready for you to watch, then Sky will charge you even if you never watch it.

When the Lessee takes on a site, it is their responsibility to know what they are taking over and what if anything is installed.

If you provide a service to a business and that business is taken over, would you expect the new owner to pay you if you keep providing the service?

 

[obscure]

If a company took over a site where you had equipment installed, and they said that we're not using it, but we want to keep it, you'd charge them right?

It's the same situation.

It's not the same at all because the OP isn't saying "I want to keep it". I am sure he would be more than happy for the company to turn up and take away the meter. The idea that he should have to pay for something he didn't ask for and isn't using, or pay to have it removed is a nonsense. If BG want it back they should pay the cost. If they really want someone else to pay it should be the person who asked for the service to be provided in the first place - just like returning a rental TV or cable box when you terminate service.

BT don't turn up and rip the cables out of the ground if you cancel your phone contract, they just turn off the service. It's actually in BGs interest for the infrastructure to remain in place so it can be used by a future occupant.

 

[NickGrogan]

The OP signed a lease, which should indicate what is and isn't installed at the property. A quick call to any supplier would have given the OP options for the lowest standing charge and costs for removal of the meter (typically around £150), doing either would have saved a lot of money and still could.

Removing a gas meter is a bit more work than BT turning off a phone line.

 

[BristolBiz]

This isn't a new rule, it's been in force for many years.

The deemed charges are high, but not £250 per quarter, unless you have a very large meter, which you would certainly know about.

http://www.britishgas.co.uk/content/dam/bgbusiness/documents/schedule_gas.pdf

Happy to discuss anytime.

Thanks Nick,

This is really useful, I'll try & find out why I'm on a "special" tariff

 

[BristolBiz]

To answer my own question a bit, in the hope it's useful to others.

The supplier cannot make "unduly onerous" charges - ie if the charges significantly exceeds supply costs.

Here's the link to the Ofgem report

https://www.ofgem.gov.uk/sites/default/files/docs/2006/06/14319-deemed-contracts.pdf

 

[LawHound]

As you are leasing the premises did you use a solicitor to assist you in the lease negotiations? If so then you should be directing the concerns to them too, its the sort of stuff they should have checked out for you before the lease was signed. It's common for there to be meters and supplies and these are what you pay your solicitors to check your ongoing liability for when you instruct them so there are no horrible surprises like this.

 

[BristolBiz]

There's no lease - the landlord is a very close friend

I spoke with BG again, apparently they have been billing me since 2011. When I queried this, they say they had been sending the bills to an address I've never heard of. I guess its the previous landlords business address.

I asked why they have never chased payment - they say that not obliged to, ............so they can just let the amount pile up.

I've now had the meter removed, the icing on the cake is that they will keep billing until they collect - within 28 days they say!

I'm tempted to let them take me to court over this.......any opinions (legal) or am I on a hiding to nothing?