Electricity Rate New Offer

[skaracay]

Hello,

I recently purchased a pizza franchise, not a Subway franchise, and plan to share my experiences in a separate piece of writing. In general, I recommend sticking with well known franchises like McDonald's and Domino's.

Now, back to the topic of electricity. Unfortunately, I am currently paying three times the market price due to a 3-year contract set up by the previous owners, which won't end until 2025.


An intermediary, some brokers or lawyers claim they can secure a better offer from the same supplier.

An intermediary quoted me £700+VAT for this service, assuring me that it was a legal transaction.

I don't know these brokers or lawyers. An intermediary won't give a name or firm name.

However, they referenced an open clause in the Ofgem law to justify their actions.

Popular brokers (bionic) said that they could not do such a transaction. I am looking for a broker or lawyer who can do it professionally.


Thank you.

 

[fisicx]

@NickGrogan is the man to talk to about this

 

[hikiwari]

This broker you're talking to will charge you £700+ and also take commission from the supplier. All brokers take commission from the suppliers.
I don't know why you feel a lawyer will negotiate a better deal for you.
DM me and I can refer you to someone

 

[intheTRADE]

I am sure a COT (Change of Tenancy) should suffice here allowing you to negotiate a new contract with the existing supplier or to choose a new supplier

Although, I have not been in the energy game for over 10 years now so could be wrong

 

[NickGrogan]

Anyone claiming you need to pay £700 is talking rubbish and a con.

If you've moved into the unit, as a new company, then any contract that the previous tenants have agreed is not valid. You need to speak to your supplier, provide them with a copy of the lease and tell them its a change of tenancy. You'll then be free to choose your own supplier.

If on the other hand, you've bought the company and taken over their contracts, then you are tied into the contract. In this case, look at what you agreed when you purchased the business. Some dodgy people will suggest that you submit a change of tenancy, and even create a fake lease to help you do it.

This is probably what the £700 company is offering.

This is fraud, and suppliers are good at spotting this kind of fraud - they see a lot of cases. This could cause a lot of trouble for you, and the company will not be there to support you.

 

[skaracay]

Anyone claiming you need to pay £700 is talking rubbish and a con.

If you've moved into the unit, as a new company, then any contract that the previous tenants have agreed is not valid. You need to speak to your supplier, provide them with a copy of the lease and tell them its a change of tenancy. You'll then be free to choose your own supplier.

If on the other hand, you've bought the company and taken over their contracts, then you are tied into the contract. In this case, look at what you agreed when you purchased the business. Some dodgy people will suggest that you submit a change of tenancy, and even create a fake lease to help you do it.

This is probably what the £700 company is offering.

This is fraud, and suppliers are good at spotting this kind of fraud - they see a lot of cases. This could cause a lot of trouble for you, and the company will not be there to support you.

Thank you @NickGrogan .

I am currently doing research to ensure that I am following all legal procedures.
The intermediary will be sending me the final invoice at the current rate, which is completely legal. He has informed me that I will be charged at the new rate going forward.

Once my current supplier sends me the new offer and confirms that there is no outstanding debt, I will make the payment.

Running the shop has become quite challenging for me due to the soaring energy costs.

 

[NickGrogan]

The intermediary will be sending me the final invoice at the current rate, which is completely legal. He has informed me that I will be charged at the new rate going forward.

Why would the intermediary send you the final invoice? The final invoice would come from your current supplier. It seems a little strange.

 

[Waddy]

Thank you @NickGrogan .

I am currently doing research to ensure that I am following all legal procedures.
The intermediary will be sending me the final invoice at the current rate, which is completely legal. He has informed me that I will be charged at the new rate going forward.

Once my current supplier sends me the new offer and confirms that there is no outstanding debt, I will make the payment.

Running the shop has become quite challenging for me due to the soaring energy costs.

I thought you were on a fixed contract that was in place when you bought the business, so how are the energy costs soaring?

 

[skaracay]

Why would the intermediary send you the final invoice? The final invoice would come from your current supplier. It seems a little strange.

Dear @NickGrogan

I'd like to correct this. The broker said the final bill would come from the supplier.

 

[skaracay]

I thought you were on a fixed contract that was in place when you bought the business, so how are the energy costs soaring?

Unfortunately, when making a business plan and the information given by previous owners is between 300-400.
Now I can't get an invoice less than 1500.

 

[Waddy]

Unfortunately, when making a business plan and the information given by previous owners is between 300-400.
Now I can't get an invoice less than 1500.

You bought a pizza franchise which relies on cooking pizzas without seeing the contract detailing how much it's going to cost to cook pizzas?

 

[skaracay]

You bought a pizza franchise which relies on cooking pizzas without seeing the contract detailing how much it's going to cost to cook pizzas?

Unfortunately, there is no detail of the contract energy price, but I was deceived verbally. We calculated electricity 300-500 in monthly expenses.

 

[NickGrogan]

Did you buy a business without seeing any of the paperwork?

 

[pentel]

Did you buy a business without seeing any of the paperwork?

This should have been in the due diligence pack your solicitor requested before you completed the purchase.

Did you use a solicitor?

 

[skaracay]

The electricity issue is over for me.
I've handed over my pizza shop to someone else.
It's a little more than free, and he'll pay for it in instalments.

The new owner will get a price with a lease agreement. He's getting some very good offers. £400 flat rate for the first year. Then 39p a kWh.

 

[Waddy]

The electricity issue is over for me.
I've handed over my pizza shop to someone else.
It's a little more than free, and he'll pay for it in instalments.

The new owner will get a price with a lease agreement. He's getting some very good offers. £400 flat rate for the first year. Then 39p a kWh.

Flat rate for electricity? I assume there's a cap and 39p is pretty high at the moment, should be getting around 30p, but I guess it's not your concern any more.

 

[NickGrogan]

No supplier will offer a contract at £400 flat rate, illegal for domestic and crazy for business. Do you mean monthly standing charge? In which case is very high.

39p is a very high unit rate, should be about 10p less.

Also if you've sold them the business then they'll be tied into the same contracts that you where.

Something doesn't make sense here.

 

[WaveJumper]

On the face of it, it doesn't, what happened to the previous contracts which were in place, did you take any legal advice on drawing up the sale agreement so nothing comes back to bite you where it hurts