Is there some kind of "implied contract"?

[scm5436]

About 9 months ago we leased a retail unit. Day 1 we went to EDF and tried to open an account with them. We had a couple of letters from them saying the the "existing supplier" was refusing to let us "switch" our electricity to them but they would keep trying.

Eventually, after 2-4 weeks it went through. But now the other supplier "Ecotricity" is sending us bills for the period from when the lease was signed, to when the EDF contract started.

On the bills they have assigned us an account number and in our correspondence they keep saying that we need to pay them for this period according to our "contract" and keep talking about our "account".

Now I understand that they may have been the supplier to the tenant before us, and perhaps that tenant did not cancel the contract correctly or at all. And perhaps that's why the tried to stop the "switch". But that's nothing to do with us.

We do not have an account with them, other than what they appear to have made up based on the information we have provided (eg. our company name, and they obviously know the address). We have also never signed any contract with them (something we have repeatedly pointed out and they have just ignored).

The problem is that they are very slow to get this matter resolved, and while they are faffing about they have still been sending out the bill, and reminders, and now a final notice.

So can anyone clarify if there is some kind of "implied" contract here that means we actually owe them money? Or if they took us to court would it be thrown out when they are unable to provide any contract or other agreement between us?

I realize that for a short amount of time we used some of "their" electricity, but that was only because they deliberately blocked the switch for that period of time, when presumably they had no right to do so.

 

[MBE2017]

What has happened to you is standard practice in the UK to allow services to be available when you move in, otherwise the company would have to disconnect and reconnect on each move of client.

Whether their is an implied contract etc I will leave to others, but you admit you understand you have used some of their electricity, I think your time would be better used paying the bill and concentrating on your business. Whether you do or not is down to yourself, butI am very doubtful any court would be looking to set any precedent for yourself.

 

[prophet01]

...So can anyone clarify if there is some kind of "implied" contract here that means we actually owe them money? Or if they took us to court would it be thrown out when they are unable to provide any contract or other agreement between us?

I realize that for a short amount of time we used some of "their" electricity, but that was only because they deliberately blocked the switch for that period of time, when presumably they had no right to do so.

Argument (debate) over whether or not a contract exists is, in my view, irrelevant in this context. The fact is that you acknowledge using their services so you can't expect not to have to pay.

If the bill appears to be reasonable then simply pay it.

If you feel it would make you more comfortable issue a one-off letter setting out your position regarding their mentioning of an account/contract.

 

[NickGrogan]

Yes, there was a contract. They were supplying the electricity to the site before you moved in, and continued to supply it until you appointed the new supplier.

Ofgem has a page here

You used the electricity that they were supplying and so need to pay for it.

The alternative would have been for the previous tenant to arrange for the power to be disconnected, leaving you with a dark shop. You'd then have to arrange for it to be reconnected, taking longer and costing more. Most leases don't let you do this.

2 - 4 weeks is pretty fast, there have been cases where suppliers have taken months to let people change, normally where the previous owner had debts and was in some way connected to the new tenants.

It could have been quicker if you had found out from your landlord who the supplier was on day one and contacted them initially.

You could try and take it to court, but you won't win.

You could ask them for a discount when you clear the debt, they might say yes.

 

[MikeJ]

The best you could reasonably argue is to pay the rate that EDF are charging. If they'd changed on the day you moved in, then you would have paid that much. Unless you're using a lot of electricity, or their rates are exceptionally high, then you're probably arguing over £10-£20. Pay it and get on with running your business.

 

[Paul Norman]

As stated above, you are going to have to pay for the electricity you have used. The contract argument here is complex (utilities are!), and not relevant.

If I pop into the store, and the store offer me a week's supply of groceries, which I reluctantly accept and eat, I will have to pay. I am not obliged to take any further supplies.

Letting this run to a dispute is probably just using up energy you might better deploy earning some more money.

 

[WaveJumper]

All of the above but hopefully you took a meter reading on your first day (always a good idea to whip your phone out and snap a pic) and make sure you are only paying for the energy you used and not any unpaid usage from previous tenant or contractors the landlord may of had in before you took posession

 

[scm5436]

Yes, there was a contract. They were supplying the electricity to the site before you moved in, and continued to supply it until you appointed the new supplier.

Ofgem has a page here

You used the electricity that they were supplying and so need to pay for it.

Thanks. It would have been helpful if they had just explained "deemed contract" rather than just saying "you have a contract with us".

And yes I did use their electricity, but only because they basically forced me to either use it or have no electricity for weeks, because they refused to let me buy from the company I wanted to buy from. And also, at the time I was using it I assumed I was using EDF's energy anyway because I'd signed a contract with them on day one. It wasn't until the letters started coming in from EDF that I became aware I wasn't using EDFs electricity.

So, as they have reduced the amount to a reasonable level, instead of the crazy "estimated" amount they asked for the first time, I'll just pay it to make them go away.

 

[Paul Kelly ICHYB]

There are 2 issues here, as mentioned:
- electricity used
- contract
I don't think it is unreasonable for you to pay for the power used before EDF became your supplier.
Re legality of a contract, are they trying to enforce it?

Remember, that if the supply was cut and you started with EDF from scratch, the costs would probably be a lot higher!

 

[Red Wood]

We had a similar situation recently, however, we took a picture of the meter reading on the first day of the lease that was submitted to our preferred energy supplier.

Leased a secondary warehouse. The existing supplier blocked our switch.

After many emails back and forth with them refusing to allow us to switch, an email was sent from us to them saying we had not nor would we enter any type of commercial agreement to have them as our electricity supplier and the electricity used prior to our tenancy wasn't our problem. Signed off by saying this is the last communication we will make in regards to this situation.

It worked. After blocking 3 or 4 switches, the final one went through.