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Switching guide Sign up and save |
How can they bill me if I never signed a contract when I moved in?You do not need to have signed anything for a legal contract to be in place. A special type of contract can exist for gas and electricity.
When does this happen?When you move into a property where the previous occupant used electricity or gas, and you haven't signed a contract yourself. It can also happen if you are landlord and your tenants have moved out, and the next tenants have not yet moved in. What is the contract?A contract will be 'deemed' to have been created between you, as owner or occupier, and the supplier which had the last contract to supply the property. Suppliers have special 'deemed contract' rates which will normally be a little higher than their 'in contract' rates. Why do 'deemed' contracts exist?They mean that properties can continuously be supplied with gas and electricity when ownership changes, even when suppliers do not know who the next occupant is going to be. It means new occupants usually find the electricity and gas still work when they move in. Do I have to pay the 'deemed' supplier?Yes. For all the energy you use unless and until you switch suppliers. It is a legally binding contract. If you sign a standard contract, it will replace the deemed contract. Where does it say this?For electricity, it is set out in an amendment to Schedule 6 of the Electricity Act 1989, contained in Schedule 4 paragraph 3 of the Utilities Act 2000. For gas it is set out in the Gas Act 1986, Schedule 2B, paragraph 8 (as amended).
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