new house

[luxardo]

I bought a new build freehold house 2 years ago and signed documents with sales person acknowledging meter readings for gas and electric at time of completion.
I have never had a bill or any communication at all either from British Gas or the builder but I found out from the meter reader that the bills are still in the builder's name.
I'm not getting a bill so presumably they are still paying the bills along with the rest of the unsold houses on the estate.
Obviously they have made an error and have not told British Gas that I now own the house.
Where does this leave me when it is eventually discovered ?
Can the builders claim the money back from me ?
My contention is that they have a contract with British Gas, they are receiving bills from British Gas and paying them. So this is nothing to do with me.
I'm fully prepared to start paying as soon as British Gas tell me I am now responsible for the fuel supply but this has not happened.

Any advice ?

[des8]

Thing is it is your responsibility to tell the utility companies you are now the consumer of their supplies.
If they have not been billing the builders they are likely to back bill you for the amount outstanding.
If they have been paid by the builders, you might find the builders asking you repay them.

By not telling British Gas you are probably racking up bills on the standard tariff, and you will be deemed to have a contract with BG.
Your contention won't wash as you're responsible for the bills on the day you take ownership

Suggest you sort the problem now and don't let it drift further

[luxardo]

The builders have been paying the bill which is why BG are not concerned. In fact BG probably don't even know I now own the house, they probably just think it's one of the ones on the estate that have not been sold yet. So I have no problem with BG and I don't see how a contract exists.
I take your point about the builder wanting their money back when they eventually find out though.

[MEPT1]

I Would Have thought it would be your responsibility to contact BG, To let them Know you are the new owner, and to give final readings received from the sales person on the date of purchase.
*

[luxardo]

I'm sure you are right !!!! But I didn't and BG are being paid so they don't care !!

[des8]

BG might not appear to care but, whether you like it or not they are supplying you with gas and that means there is a contract between you.
The builders may unwittingly be paying the charges, but you are still liable for them.

It would be better to sort it than let it drift.

[MEPT1]

Dont leave it,had a similar problem with EDF.we .had DD set up for gas and electric,for one reason or another hsbc our bank cancelled the DD After 2 years,and never gave us a reason why,or they did not know themselfs..we never noticed and EDF never flaged it up on there system that payments had stopped,we were still getting quarterly bill updates,but stating as you have DD set up no payment was due,untill 2 years later,even thou they said it was no fault of ours,we still owed £4300.00,they knocked of £150.00 as agood will gesture,were still paying it off now 2 years later.

[luxardo]

Thanks for your input. Our situations are totally different though. You clearly had a contract with a supplier, you just didn't pay. Mistakes were made I agree but the bottom line is you had a contract with an energy company, you failed to pay your bills and they asked for it to be paid. I have never had any contact let alone contract with BG.
I'd like to thank everybody for their comments and advice but I'm going to take my chances and see where this leads. I'm convinced that I have no contract with BG and it will be up to the builders to try and get the money back from me. I have a few thoughts on a defence to that as well including letting the house out so that the tenant is responsible not me. Then they have to find the non existent tenant hahaha

[R0b]

I would say a couple of things:

1. Schedule 2B of the Gas Act 1986 says (link here):

"(1) Where a gas supplier supplies gas to a consumer otherwise than in pursuance of a contract, the supplier shall be deemed to have contracted with the consumer for the supply of gas as from the time ( “the relevant time ”) when he began so to supply gas to the consumer."

2. The tenant is responsible only if you contractualise it in such a way to say that, otherwise it can still fall to you as the responsible person.

3. You might want to brush up your knowledge on the law of unjust enrichment (also known as restitution). Regardless of whether you intend to let the property out, you could still be held responsible for the period when you became the owner of the property up to the point of it being let. This is probably down to the builder and whether they become aware that they are continuing to pay for that property, and they would typically have 6 years from (presumably) the date of completion taking place.

I can't see any valid defence that you might have under a claim for unjust enrichment and trying to pass the blame to the tenant won't work either, especially for the period before it was let out. Even if the tenant doesn't pay any bills during the time he or she is in the property, you will still be responsible and it will be up to you to recover from the tenant their portion of the bills.

Good luck.

[luxardo]

Thanks for this, you make some good points. However I still maintain (as per schedule 2B you quote) that a contract exists between the builder and BG and therefore a fresh, implied contract cannot be assumed between myself and BG as one already exists. Anyway BG are being paid so what do they care ?
Point 3 I have already considered and I think I'm pretty screwed there as I have no defence really.

If I have to pay the builder back then so be it, I've lost nothing as I would have had to pay the same amount to BG anyway so I think it's worth a chance holding out.
I'm also thinking about what happens when the builders finally finish and leave, maybe BG will simply forget about*the account*???
*

[R0b]

How do you know that a contract exists between the builder and BG, have you got a copy of that contract or have you just made that assumption? The contractual terms between the builder and BG might be such that upon the builder completing the transaction the obligations of the builder to pay gas/electricity for that property ceases.

In the above case, Schedule 2B would then apply. As to your point about that there cannot be a second, new contract implied, just because one contract exists does not mean another can exist at the same time. Also, contract law is based on common law i.e. law decided by the courts whereas the Gas Act 1986 is legislation made by parliament, and legislation is the highest form of law in the land. Therefore, the Gas Act trumps common law where there is a conflict.

Unless there is something in the Gas Act that says otherwise regarding an existing contract (and I am no expert on energy law), this could go one of two ways. The first, as I described with the builder suing you for restitution or second, BG might reimburse the builder since the date of completion and then sue you for the underpayment.

Obviously if you are happy to pay whoever if the time comes to it then that's fine, what if you are taken to court and judgment is obtained against you, do you have the means to pay any outstanding sum within one month of judgment? Otherwise you will have a CCJ on your record for 6 years and of course that might affect any loans, credit borrowing, interest rates etc. you currently have in place.

Another possibility is that your conduct may, depending on the facts, amount to fraud either as a criminal or civil matter (civil fraud is called deceit). Certainly as a civil matter, if the builder/BG succeeds you might also be liable for consequential losses flowing from the fraud. The other point is that the 6 year period for fraud only begins when the builder/bg becomes aware of the issue.

Is there anything in your contract that says you have an obligation to notify utility providers that you've moved into the property because if so, that could be another way for the builder to clobber you with costs.

Ultimately, I don't think we're going to change your view on this but at least you can go into it with eyes wide open and if it results in a negative impact on your lifestyle, then at least you can't say you weren't told about it.

Sometimes these things come back to haunt you many years down the line when you have long forgotten about it.

[luxardo]

Once again, very good points, thanks.

The builder is definitely paying the bills, the meters get read and their name is on the account, I've seen them, the meter reader guy showed me. So a contract must exist.

Yeah I agree with your 2 way scenario, the builder can sue me or BG can reimburse and sue me. I seriously doubt BG will refund them so I have no worry about them. I'm pretty sure BG are not bothered as long as they get paid.

There is nothing in my completion contract that states I must notify utility companies although I did sign to say I accept responsibility and the meter readings were taken and recorded on the document.

Push come to shove I will pay, it's no problem.
Would I fight it if it went to a county court action though mmmmmm I'd have to think about that and my only defence would be that a contract exists between the builder and BG and it's nothing to do with me your honour. Not sure how that would pan out.
My only other defence would be that I never wanted gas or electricity which is why I never contacted BG so it's not my fault if some was used. Not optimistic about that either.

I really don't think fraud comes into this, can't see the police getting involved and I can't see how the builder could claim I defrauded them when it stemmed from their own error.

One other point though. This has happened to a lot of people on the same estate. Two of my friends bought houses here so I know. In these two cases they got away with it for about 6 months and then had to start paying. But they were never charged from the original date of completion, they both got 6 months free energy. maybe I could claim a precedent was set ?

[R0b]

At the end of the day, I can only give you possible scenarios to be aware of and you are the one who knows the full facts so some of the things pointed out may or may not be applicable to you i.e. civil fraud.

So signing a slip acknowledging responsibility could be a key piece of evidence in holding you responsible if matters were taken further.

Not wanting gas or electricity but consuming it anyway? I think that defence will fall flat on its face for various reasons.

I don't think you can claim precedent based on two of your friends getting 6 months free energy meaning that you shouldn't have to pay. It's really up to the builder/BG as to whether they pursue you or not, particularly if you have accepted responsibility by signing a document. You can of course argue it, but whether your point is taken is another thing in itself.

*

[luxardo]

Thanks for the advice. I'm pretty sure my only problem is that the builder can hold me liable and demand I pay them back. I'll just pay up if they threaten legal action, I think it's worth a chance, I've lost nothing as would have had to pay BG anyway.

I guess this is a similar situation as someone putting the wrong account number on a direct debit and accidentally paying someone else's bills ?

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