Pre-Payment Meter Standing Charges.

Whenever you move into a property, you have a "deemed contract" with whoever the current supplier is.  What you should do is take meter readings, then contact the suppliers to give them your contact details so they know who they are billing.


If you don't need a supply, you should have it disconnected, not just ignore it.  Otherwise, when you do get a key for the meter, it will come with a big back bill to pay off.

The deemed contract is to pay for what has been consumed. I am not quite sure that the standing charge is part of such a contract.

Yes Simon I believe that the new owner will have to pay off any outstanding amount if energy is consumed, but is the new owner responsible if he never uses say any gas and does not contract to use the gas meter, and has no key?


Z.

I could understand a "deemed contract" applying if fuel is used but I would not have thought so if it is not.

The simple solution would be for the new owner to contact the supplier and tell them.

Someone I know had a mother in law  who got upset by threatening letters from a gas supplier some years back.

He then realised she could not owe them anything as it was an all electric house. They did get a massive apology in the end.


Zoom, why are you asking?

Surely a pre-payment key-operated gas meter has no standing charge? The only thing you pay for is to top up the key - the cost per unit being higher to cover what would otherwise be a standing charge?

wallywombat:

Surely a pre-payment key-operated gas meter has no standing charge? The only thing you pay for is to top up the key - the cost per unit being higher to cover what would otherwise be a standing charge?

I know from personal experience that an electricity key meter has a standing charge. See what happens if you leave a property unoccupied for some time!

Seconded, even if the electrics are not used a couple of quid get taken each week for the privilege of having a meter.

If you do need to contact the supplier to arrange a change of key ownership it is as well to either have the meter and the current key in front of you, or to take pictures - the long number of the front of the meter, and the other one on the key  are often both needed, as the key and the meter are paired and associated with a particular customer name who is responsible in the eyes of the supplier for everything that happens - which can be an interesting division of responsibility, (and strictly against the T & Cs)  when  a sub-let tenant is given a key that belongs to the owner, and then takes it away with them.

Okay, start at the beginning.


Why was the prepayment meter installed?


Was it because the previous account holder was in debt.


Has the previous account holders debt been added to the prepayment meter as a weekly repayment on top of the daily standing charge?


If the meter has not been topped up for several weeks a top up could be virtually wiped out by the accrued standing  charges and if there is debt repayment accruals as well you can kiss the top up goodbye.


Andy

Original post  "If somebody moves into a new house and there are pre-paid meters as used by the previous owner, is the new owner responsible for any standing charges if no electricity or gas is consumed for a period of months? The new owner has not contracted with the energy suppliers in his own name or credited the meters with a key thingy."


I believe that the meters show money owing, accrued by standing charges presumably.  No energy has been used by the new owner. The new owner has not signed up with either energy supplier. The meters are still in the name of the previous owner of the property.


So, what is the new owner's position regarding the debt?




Z

Difficult, the previous account holders supplier may block a move to to a different supplier and clearing the debt from the meter won’t be easy.


I have told this story before on the old forum, I did some work for a void maintenance company on a house in repossession that the building society had placed into a holding company and was going to let out. The was over £700 debt on the prepayment meter and the maintenance company was instructed to go down the local corner shop and put over £700 credit on the meter to ripe the debt so that the agents acting for the building society could get a tenant moved in asap.


I have never got directly involved in try to sort out prepayment meter debts, but the buy to let landlords I do work for moan like hell when they have to. I’m not sure of the legality of holding back the tenants deposit until any debts on gas and electric meters are settled, but it seems the obvious thing to do, so long as someone remembers to check if they have left the meters in debt.


Andy