Newer version available

There is a newer version of this publication available:
Fuel Rights Handbook 21st edition

Gas

• Supply contracts
• Contracts for other services

Supply contracts

Gas suppliers supply domestic customers with gas under the terms of a contract or a ‘deemed contract’ (see here).1Condition 22.1 SLC Suppliers must have a ’scheme’ setting out the principal terms of contracts. The principal terms include details of the prices to be charged for gas and state if there may be any fluctuation in the amount of the bill due to variations in the amount charged by transporters to suppliers for transporting gas to your premises.

Details of the principal terms must be published in a way which is likely to bring them to the attention of the customers concerned.2Condition 23.1 SLC Ofgem must be kept informed of the suppliers’ principal terms and of any variation. You are entitled to a copy of the principal terms on request and the supplier must send one within a reasonable time of receiving a request.3Condition 22.8 SLC Supply contracts must be in writing.4Condition 22.4 SLC

The terms of contracts may vary between different types of customer, and between different areas, but not so that there is undue preference or discrimination between customers.5Condition 0 SLC Any difference in terms and conditions offered to customers on different payment methods must reflect actual cost differences.6Condition 27.2A SLC Suppliers increasingly set prices on a national basis with less local variation than with electricity. Ofgem and the industry talk openly about the need for ‘cost-reflective pricing’.

A contract may be for an indefinite period, known as an ‘evergreen contract’, or for a fixed term. Where a contract is due to come to an end, the supplier must offer you a new contract and inform you of the terms of the ‘deemed contract’ that would apply if no new contract is agreed. A supplier may not enter a contract with you if another person has a contract with a different supplier for the supply of gas to the same premises,7Condition 14 SLC unless that contract will have expired, or have been breached or have been terminated before you require a supply.

 

1     Condition 22.1 SLC »

2     Condition 23.1 SLC »

3     Condition 22.8 SLC »

4     Condition 22.4 SLC »

5     Condition 0 SLC »

6     Condition 27.2A SLC »

7     Condition 14 SLC »

Contracts for other services

Gas suppliers can offer contracts for the supply of gas together with other services – eg, service pipes or energy efficiency goods or services. Such contracts must clearly and separately identify the charges made for the supply of gas and the other services. These contracts may have different terms and conditions to contracts offered under published ‘principal terms’.