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Pre-Payment Meter Standing Charges.

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.


Z.
Parents
  • Hello

    The deemed contract includes both unit rates and standing charges.  Whoever moves in will be responsible for paying both from the point that they move in.  You should always read the meter and tell the supplier when you move in.

    With prepayment there is a little more complexity.


    There may be some credit on the meter.  If there is the supply will be on. If there isn't it will be off.  Strictly speaking this credit belongs to the outgoing occupier but is often just used up by whoever comes in.  That's another reason for reading the meter so the supplier can refund the outgoing customer.  Of course the outgoing customer may have provided readings to the supplier to facilitate this but you should always contact them with readings anyway - they need to know who to send the bill to and you need to be sure that the start position on your account is right.


    So if you just use the supply without contacting the supplier you are still liable for both standing charge and consumption at the rates in the supplier's deemed contract.  If there was no meter readings taken the supplier will estimate them and you will be stuck with them (assuming the estimate is reasonable).


    In order to put money 'in the meter' you need some form of card or key (unless its a newer/smart meter) which you take to a suitable shop and they apply credit when you hand over cash.  If the outgoing tenant doesn't leave this you cant put money on the meter.  If they do you can but you need to be aware that although the power will come on if you do this the money you pay over will be credited to the outgoing tenants account so you will pay twice!  Another reason for telling the supplier who will send either new keys/cards or reassign them to you.

    Finally, the meter may be set to recover a debt in which case the rates set in the meter will be higher than the contract rates so you will get less power

    for your money.


    All in all it makes sense to speak to the supplier and give meter readings on the day you move in.


    Hope this helps to clear the fog.

    Peter
Reply
  • Hello

    The deemed contract includes both unit rates and standing charges.  Whoever moves in will be responsible for paying both from the point that they move in.  You should always read the meter and tell the supplier when you move in.

    With prepayment there is a little more complexity.


    There may be some credit on the meter.  If there is the supply will be on. If there isn't it will be off.  Strictly speaking this credit belongs to the outgoing occupier but is often just used up by whoever comes in.  That's another reason for reading the meter so the supplier can refund the outgoing customer.  Of course the outgoing customer may have provided readings to the supplier to facilitate this but you should always contact them with readings anyway - they need to know who to send the bill to and you need to be sure that the start position on your account is right.


    So if you just use the supply without contacting the supplier you are still liable for both standing charge and consumption at the rates in the supplier's deemed contract.  If there was no meter readings taken the supplier will estimate them and you will be stuck with them (assuming the estimate is reasonable).


    In order to put money 'in the meter' you need some form of card or key (unless its a newer/smart meter) which you take to a suitable shop and they apply credit when you hand over cash.  If the outgoing tenant doesn't leave this you cant put money on the meter.  If they do you can but you need to be aware that although the power will come on if you do this the money you pay over will be credited to the outgoing tenants account so you will pay twice!  Another reason for telling the supplier who will send either new keys/cards or reassign them to you.

    Finally, the meter may be set to recover a debt in which case the rates set in the meter will be higher than the contract rates so you will get less power

    for your money.


    All in all it makes sense to speak to the supplier and give meter readings on the day you move in.


    Hope this helps to clear the fog.

    Peter
Children
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