Customers with deemed contracts

• Your liability for the bill
• Disputes over the rate of gas consumption
• Ending your liability for the bill

Your liability for the bill

You are supplied with gas under the terms of a deemed contract if you are a consumer at the premises supplied with gas and:1Conditions 7 and 22 SLC set out the obligations of a supplier under deemed contracts

•you are the owner or occupier of the premises supplied with gas, and the liability for the supply of the former customer has come to an end or been terminated; or
•you became the new owner or occupier of the premises on or after 1 March 1996 and you have not entered into a contract with a supplier for a supply of gas; or
•your contract for the supply of gas has come to an end or been terminated and you continue to receive a supply of gas from the supplier; or
•you are being supplied with gas by another supplier because your supplier’s licence has been revoked by Ofgem.

The terms and conditions of a deemed contract are determined in accordance with a scheme set up by the supplier.2Sch 2B para 8(8) GA 1986 They may include terms and conditions enabling the supplier to determine the amount of gas supplied to you if a meter reading has not been taken at the start of the deemed contract. Your liability is assessed under these terms until the earliest of the following three events:3Sch 2B para 8(9) GA 1986

•the date of the first meter reading; or
•the time the supplier ceases to supply you with gas; or
•the date you cease to take a supply of gas.

 

1     Conditions 7 and 22 SLC set out the obligations of a supplier under deemed contracts »

2     Sch 2B para 8(8) GA 1986 »

3     Sch 2B para 8(9) GA 1986 »

Disputes over the rate of gas consumption

There may be a dispute over the amount of gas consumption, particularly where appliances have broken down or have not been used. In such a case, a supplier providing a gas supply under a deemed contract is required to act reasonably and take into account relevant consumption data for the premises.1Condition 7.9 SLC

For more on high bills, see Chapter 6.

 

1     Condition 7.9 SLC »

Ending your liability for the bill

Your liability under the terms of a deemed contract continues until one of the following applies.

•You enter into a contract while you are still an owner or occupier of the premises. You continue to be liable under the terms of a deemed contract until your new contract takes effect.

You may terminate a deemed contract at any time by giving the supplier seven days’ notice. The notice period may be shorter if the supplier agrees. If you have not arranged to enter into a contract with the same supplier at the end of the notice period, your supply continues under the terms of a further deemed contract.

If you intend to switch supplier, you must give your existing supplier at least 28 days’ notice, unless the supplier agrees to accept a shorter notice period.

You may not bring a deemed contract to an end without the agreement of the supplier, if you are being supplied by an alternative supplier because your supplier’s licence was revoked by Ofgem.1Condition 7.1 SLC You can only bring such a deemed contract to an end:

◦with the agreement of the supplier (which will be given if you accept a contract with that supplier);2Condition 7.5(c) SLC or
◦by transferring to another supplier; or
◦by ceasing to take a supply of gas at the premises.3Condition 7.5(d) SLC

•You cease to occupy the premises. If you give your supplier a minimum of two working days’ notice, or if your supplier agrees to accept a shorter period of notice before you leave, your deemed contract ends on the day you leave.

If you do not give your supplier notice that you are leaving, your deemed contract does not terminate and you continue to be liable to pay for the supply of gas until the earliest of:

◦28 days after you inform the supplier you have left;
◦the next date the meter is due to be read;
◦the date when another person requires a supply at the premises from either the same supplier or a different supplier.

 

1     Condition 7.1 SLC »

2     Condition 7.5(c) SLC »

3     Condition 7.5(d) SLC »