Electricty supply cut off because of previous tennat

[Nayia]

Ok so i took over the business from march 2015 we purchased it from a liquadtor who liquadated the previous company. After doing all the necessary transfers we arranged a broker to organise energy gas/electric. Anyway the supplier of the previous supplier continued to send letters relating to the previous occupiers debt and said the would not allow me the new company to transfer the contract to a new supplier. Anyway i contacted the energy broker who said they had this in hand!

Any lettwr i received for the previous company relating to energy i would scan and send over. Eventually electricity would agree to transfer as it was a new tennancy. Anyway i left the business premises today for 1 hour and came bk to no electric! So i rang the supplier and said they had accessed the property with a locksmith and cut my supply! They had left no notice on the meter or at the door nothing! Now im in a position i have a bar i can not open this wknd loosing out on £7k in takings and im so concerened! I rang the supplier who said theres nothing they coupd do till monday and i would have to pay £1000 for the electric i have used which i have no problem with but can they cut me off for a previous companys debt!! Is this reasonable have they acted correctly!! Im so worried about all this! The previous business debt isnt possibly my debt so why should i be punished?

Please help

 

[Deleted member 226268]

This could take a long time to sort out with the useless electricity companies.

For right now, until they get around to re-connect you, you could purchase a generator to get you back working instantly.
Something similar to this would be suitable, just connect it to your internal mains connection
( after the meter box )

http://www.powerproductsdirect.co.uk/9-10kw-diesel-generator.html

 

[roydmoorian]

Was the previous tenant by any chance a ltd company run by similar directors to your present company ?

 

[My Owl 1]

If the company is a new one and nothing to do at all with the outgoing people, then the energy company should not have cut you off. However they will need legal documents to prove that. Your solicitor should be able to assist you with that.
When you registered your energy with a supplier did they not ask you for bank details then and have you not paid them something since you moved in in March.
I also thought that to break a lock they would have had to give you legal notice before hand that they were moving to that stage.

 

[Paul Norman]

The legal issues here are complex. However, you are dealing with energy suppliers, and none of them will provide a quick resolution - they just do not have a helpful mode.

I suspect that the generator purchase is your only option.

 

[My Owl 1]

Generator hire would be better cos they will ensure that Health and safety issues are dealt with.

 

[cjd]

They couldn't have done any of this without trying to contact you many times by letter and by physical visits. They have to give many warnings and state exactly what they will do if payment is not recieved.

If they got no rely to anything, only then would they be able to ask a court for a warrant to break into premises. They can't do it without a court order - if they do, it's a criminal offence.

If you have evidence that none of this happened and that your were dealing honestly with them to sort it out, they are in a lot of trouble and you need to find yourself a solicitor. But I rather suspect that things are not quite as they're stated here.

 

[Nayia]

We requested that we wanted to change supplier the accepted we could go with a new gas supplier no problem! When we asked about electricity they said it could take up to 35 days that was 2 weeks ago. The president had already been set as they identified us as a new tennant! We had no contact from them with regards to cutting supply.

We did however receive a letter in the previous tennants name, which i opened stating they would disconect which they had allready done the previous friday! We rang to chase things up and a new lady said this isnt really fair how we been treat. And said they would re connect us at no cost!

However i took matters into my own hands as i couldnt simply loose trading. I advised id reconnected as nothing had been left by the baliffs as to say they had been. They were fine with this and said they would just attach new seals. Now im wondering have the baliffs entered unlawfully as it was the previous tennat who owed the debt not us! And they knew a new tennant was in and they went ahead any way! We are limited company and no previous directors from the previous company are involved in this company.

 

[OldWelshGuy]

There should be no debt if (as you state) liquidators were involved in the old company. Something isn't adding up her somewhere. the supplier shouldn't have been writing to the old company at your address, and you should have been telling the supplier to deal with the liquidator.

I would also suggest the 'broker' has a part to play in this as it seems he/she may not have dealt with the things you sent over.

You are without question entitled to some sort of compensation, I would want to know how the hell a utility company failed to deal with a liquidator, when that is a basic debt.

 

[pentel]

A few years ago we purchased a building in which the previous owner had defaulted on the electricity and as a result had had the power disconnected. Despite having dealt with the electricity supplier for 3 years in a leased premises and always paid the bill by direct debit we had to provide a security deposit to cover 6 months of expected usage (£5,000) before they would reconnect us, which they would only do at their out of contract rate (= expensive). We eventually got this back 2 years later.

We had no such issue with the gas....

 

[14Steve14]

Something isn't adding up here. I used to be a field agent who used to do utility work and disconnections.

When you took over the premises you would have had to show your new supplier lots of information, including the rental agreement, before a new account could have been set up. You would have had to read the meters and give the meter readings to the new supplier who would start billing you from the date you moved in, and from the meter readings you gave. Regardless of what happens after you have that information to hand. As you were using a broker it would have been given to them.

If you opened and copied the letters, you could be in breech of something as they were not addressed to you, but never mind that. If you then tried to contact the old supplier they would have asked you to show proof that you were the new occupier. A tenancy agreement usually works.

From the utility providers point of view before getting a warrant of entry they would have had to send letters, which by the sound of it they did. They would have also sent in a field agent to visit the property to gather information, such as the meter readings, and whether the property is occupied and by whom. This generally happens and unless you refused to speak to them, or didn't give them the information they wanted, would it go any further. The utility company would then send a further letter with details about the court application and the date and time. If you were opening the post from the old supplier you would have read this. All you had to do it to turn up to your local court and explain who you were and the application would have been refused. Once the warrant is granted they can, and did force entry and isolate the supplies.

You then contact the old supplier, as you know who they are, and you again explain that you are the new occupier and they come back in a few days and reconnect your supply free of charge once you have given them the proof they require.

As the company was in the hand of a liquidator, all you had to do was to notify the old supplier of this and they would have contacted them direct. Problem solved, unless you were also the old business and were trying to avoid paying what you owed.

 

[jackal999]

We have many outlets across the country usually acquired as a result of a business failure by someone else.

We have never ever encountered what the op has described and in fact without exception the description of what 14steve14 has said above is true although we have never had it go as far as court.

That said it can take months to get the new account resolved the way we want it but we have always got there.

IMHO It seems the OP or his advisors have screwed up somewhere.

J

 

[NickGrogan]

As has been said, if it was a new company taking over this wouldn't have happened.

If however the premises has been "transfer" to a family member, or the company has all the same directors and there is no official paperwork to back up the transfer then the suppliers will rightly ignore the "change of tenancy" until/unless proof is provided.

This kind of thing is very popular in certain sectors with businesses changing hands multiple times and various suppliers being let down.

If you have genuinely taken over the site and have no connection to the previous business then it shouldn't have happened and I'd be happy to talk to the suppliers for you.

 

[Colsey25]

I know this is a very old thread, just wonder if there is any energy experts who could advise on my issue: will try and keep it short:
We took a lease on a restaurant 18 months ago, as soon as we got keys we opened a gas and electric account, the current supplier BGP blocked the transfer several times due to an issue with outgoing tenant (totally unrelated to us) eventually they opened up an account and said they would re-bill and honour the rates that we got at the time of setting up account this took 12 months or thereabouts! They have now sent us a bill of 30k on a higher rate than we obtained, and want it immediately, and we just don't have it, they are saying we should of put money aside etc, which ok yes I agree but when not having a bill and all the other expenses it's easier said than done. So they are now threatening disconnection. I even thought let's pay it and just write it off but they won't take any installment plan, want immediate payment.

Question I have is, if we liquidate the Ltd company and get the landlords solicitors to assign us a new lease in a new ltd company, will.they block the transfer as directors have same names? This is the only option I can come up with to survive.

Sorry for long post making me ill with worry. TIA

 

[eteb3]

If what you’re saying is the bill has rendered you insolvent, then your duty as a director is to the company’s creditor(s) and not to its members.

The re-lease would clearly be intended to stiff the energy supplier and benefit the members (I assume you’re a sole/major shareholder). So I can’t see it flying.

But maybe one of the IPs can say there’s a magic prepack solution. @Lisa Thomas @Elliot Green

Are you sure you owe it, though? Why are they billing at the higher rate? And are they stinging you for former tenant’s usage?

 

[Colsey25]

If what you’re saying is the bill has rendered you insolvent, then your duty as a director is to the company’s creditor(s) and not to its members.

The re-lease would clearly be intended to stiff the energy supplier and benefit the members (I assume you’re a sole/major shareholder). So I can’t see it flying.

But maybe one of the IPs can say there’s a magic prepack solution. @Lisa Thomas @Elliot Green

Are you sure you owe it, though? Why are they billing at the higher rate? And are they stinging you for former tenant’s usage?

Yes i suppose the bill has made the company insolvent, I stupidly presumed that when they calculated the bill, 1 it would be at the rates the broker quoted when we opened the account this was mentioned and im hoping I have this in writing somewhere
And 2 they would give us time to pay considering the amount of time it took them to calculate the bill. I didn't think they would demand it in 1 payment, if they would accept a payment plan we could of easily paid it off with usage over the coming season (just started to get busy again). The best offer i got was 20k immediately and 2k per month, that's the least they would take. It is only our usage. Didn't want to stiff anyone but I can't honestly pay it in one lump.

So I suppose it's the end of the line, and will have to let them disconnect and walk away!

 

[fisicx]

Did your solicitor point out the terms of the electricity contract before you signed? I’d have thought this should have been negotiated with the supplier/landlord.

 

[Colsey25]

Did your solicitor point out the terms of the electricity contract before you signed? I’d have thought this should have been negotiated with the supplier/landlord.

No, we signed a lease got the keys and then opened the energy account the landlord had no involvement? And didn't get a solicitor to look at the energy contract never thought about that.

 

[fisicx]

No, we signed a lease got the keys and then opened the energy account the landlord had no involvement? And didn't get a solicitor to look at the energy contract never thought about that.

Oops. Which is why it's all gone pear shaped.

Never, ever, ever sign a commercial lease without a solicitor.

And it's quite likely the energy broker promised you the moon without the agreement of the energy company.

Walking away may not be possible. The energy company and landlord will object to the company closure. Go find a solicitor to help extricate you from your obligations.

 

[eteb3]

it's quite likely the energy broker promised you the moon without the agreement of the energy company.
<snip>
Go find a solicitor to help extricate you from your obligations.

Hopefully the broker is an agent for the leccy company, and so they'll be bound by him/her. But I wouldn't hold my breath, more likely agent for the customer. But brokers can have fiduciary duties, so solicitor is def a good way to go.

 

[Paul Kelly ICHYB]

they are saying we should of put money aside etc, which ok yes I agree but when not having a bill and all the other expenses it's easier said than done.

So, you could have paid the bill when it came, but couldn't put some money to one side knowing that the bill was coming?

the current supplier BGP blocked the transfer

What transfer? You are a new customer (assuming you have nothing to do with the old business).

they opened up an account and said they would re-bill and honour the rates that we got at the time of setting up account

They have now sent us a bill of 30k on a higher rate than we obtained

Do you have this in writing?

I even thought let's pay it and just write it off

What do you mean by 'write it off'? If you took their services, you owe them money.

When you speak to them, escalate the call - do not speak to the standard call centre.

If you can, pay the bill, ideally in installments (maybe with a lump sum to start) . Fight to get a refund of the over charges. If they do not comply, get a deadlock ( I think it is called) letter and go to the Ombudsman. Ten change the supplier.

If you went through the liquidation and new company route, would the landlord be OK with that?

 

[pentel]

It is a bit late in the day but we had a similar experience when moving premises. The previous occupant had managed to get the electricity and gas cut off. They were with the same supplier that we used at our previous premises and had paid the bill without fail for 3 years. No other supplier would connect us back up and the existing supplier wanted a deposit of 12 months bills before reconnecting us. It took quite a while to get sorted.

If there is an incumbent supplier it is best to do a deal with them directly initially so that you create a clean account and then move as soon as the fixed term ends. Staying on the out of contract rates is painful.

We have also found that negotiating directly with the suppliers usually (but not always) gets a better deal than going through a broker.

 

[Colsey25]

Oops. Which is why it's all gone pear shaped.

Never, ever, ever sign a commercial lease without a solicitor.

And it's quite likely the energy broker promised you the moon without the agreement of the energy company.

Walking away may not be possible. The energy company and landlord will object to the company closure. Go find a solicitor to help extricate you from your obligations.

Oh no I used a solicitor for lease, there is no issue with lease and landlords are very understanding, just this British gas issue taking a year to generate our bill and then wanting immediate payment.

 

[Colsey25]

So, you could have paid the bill when it came, but couldn't put some money to one side knowing that the bill was coming?


What transfer? You are a new customer (assuming you have nothing to do with the old business).



Do you have this in writing?


What do you mean by 'write it off'? If you took their services, you owe them money.

When you speak to them, escalate the call - do not speak to the standard call centre.

If you can, pay the bill, ideally in installments (maybe with a lump sum to start) . Fight to get a refund of the over charges. If they do not comply, get a deadlock ( I think it is called) letter and go to the Ombudsman. Ten change the supplier.

If you went through the liquidation and new company route, would the landlord be OK with that?

Hi Paul thanks for the reply,
Yes in hindsight we should of saved some money but we didn't and it sort of went out of my mind.
Yes British gas plus blocked the transfer 3 times when we initially took over, so basically we were forced to stay with them.

When i said write it off I meant forget about the dispute and pay the bill but in installments, but they want it ALL or nothing, i know we used the goods so I know i owe it, but i haven't got it it one lump.

I've got a deadlock letter but apparently they can still escalate to disconnect while the Ombudsman compliant is in.

The landlord is OK with us re assigning the lease to another company, I think that British gas would object to change of tenant with the same directors, it was not my intention not to pay but they won't help at all, and i can't think what else to do! I've invested everything i had.

 

[Paul Kelly ICHYB]

So, send them some money as a sign of good will! Then contact them.

 

[Colsey25]

They want full payment or nothing! The "debt specialist" said its out of his hands and gone to disconnection