standing charges

[McGinty]

Would like some advice please on this issue. We moved into a small industrial a few months ago. We have now received a bill from the gas company for around 250 pounds -they are saying that although we have not used any gas there is still a daily standing charge of two pounds fifty pence ( got a foreign keyboard here and I can't find a pound sign on it!) Are they within their rights to do this? We have contacted them and they say they are-can anyone advise please?

[stevemLS]

Re: standing charges

Depends on the supplier, according to this http://www.money.co.uk/business-gas.htm most make a standing charge.

[ostell]

Re: standing charges

Do you have a contract with the gas company?

[McGinty]

Re: standing charges

No-there is no contract. We did not use any gas and did not see the need for one.

[Johnboy007]

Re: standing charges

No contract = no liability for any charges.
They have assumed, wrongly, that you would need a supply of gas and have not removed the meter when the previous occupier left.
They are at fault, and it is their own liability for costs.
There has to be a contract, an agreement between you and the supplier.
Tell them to remove their equipment from your premises, otherwise you will be charging them storage fees.
Just tell them you do not want to contract with them.

[des8]

Re: standing charges

Trouble is if you take over a unit that already has a power supply. you have a deemed supply contract which remains in force until you either arrange a proper contract or cancel.
This is fairly standard across the industry.

[Johnboy007]

Re: standing charges

Trouble is if you take over a unit that already has a power supply. you have a deemed supply contract which remains in force until you either arrange a proper contract or cancel.
This is fairly standard across the industry.

The previous occupier was liable for the supply, and remains liable until he cancels the contract with the supplier.
The new occupier cannot cancel a contract that he never had in the first place.
There is no legislation that I know off, that forces anyone to pay for something they have not ordered or even used.
Perhaps if there is, you could point me in that direction.

[des8]

Re: standing charges

Utilities Act 2000

Open to some discussion however, and in each individual case could take a court decision

[Johnboy007]

Re: standing charges

Utilities Act 2000

Open to some discussion however, and in each individual case could take a court decision

I will have a read up on this Des.. Thanks

[Johnboy007]

Re: standing charges

Hi Des,
I read the first line of the Deemed Contract and it says........

Where an electricity supplier supplies electricity to any premises otherwise than in pursuance of a contract, the supplier shall be deemed to have contracted with the occupier (or the owner if the premises are unoccupied) for the supply of electricity as from the time (“the relevant time”) when he began so to supply electricity.

My understanding of this is,
The previous occupier had a contract with the supplier.
If he did not cancel the contract it is still in force.
Now according to the first line........
Where an electricity supplier supplies electricity to any premises otherwise than in pursuance of a contract,
Well Des I would suggest that a contract is still in force, therefore the new occupier is not liable according to this regulation.

Of course it also appears, that these regulations only mention a supply of electricity and not gas, as in the OP's case.
Interesting......?

[des8]

Re: standing charges

We should, I think, assume the previous occupier had cancelled his contract as there is no mention in original post of being charged for usage.
Sorry, regarding Gas the relevant act & section is: paragraph 8 of schedule 2B to the Gas Act 1986

[Johnboy007]

Re: standing charges

We should, I think, assume the previous occupier had cancelled his contract as there is no mention in original post of being charged for usage.
Sorry, regarding Gas the relevant act & section is: paragraph 8 of schedule 2B to the Gas Act 1986

Ah, trying to trick me are you?

Then if the previous owner cancelled the contract, surely forcing a deemed contract on another person is unlawful?
Had the OP gone in and started using the gas, then yes, I would agree it is a deemed contract.
But as he never used any supply, the onus was on the supplier to remove his meter and cap off the gas pipe.

[des8]

Re: standing charges

In post 8 I did say it was open to discussion
I would suggest the OP's best course of action at the moment is to write to a senior person and explain that on taking over the unit they were simply unaware of the gas supply connection, and never had any intention of availing themselves of the supply. Then try and negotiate a rebate, whole or partial of the outstanding amount. A more pragmatic solution than fighting in court over £250.

[Johnboy007]

Re: standing charges

In post 8 I did say it was open to discussion
I would suggest the OP's best course of action at the moment is to write to a senior person and explain that on taking over the unit they were simply unaware of the gas supply connection, and never had any intention of availing themselves of the supply. Then try and negotiate a rebate, whole or partial of the outstanding amount. A more pragmatic solution than fighting in court over £250.

And that's exactly what we are doing Des, discussing the ins and outs of this situation.
I do agree with your suggestion of negotiating with the supplier.
But where money is concerned, I don't suppose it will be an easy task for the OP
:tinysmile_twink_t2:

[wales01man]

Re: standing charges

We are at the moment looking to rent an industrial unit for a new business venture in the terms of the lease in most that we have had details of it says the tenant is responsible for paying rates electricity gas insurance etc if we sign this lease stands to reason we are liable for not only paying for what we use but also standing charges