Resolving prepayment meter dispute?

Resolving prepayment meter dispute?

0:01 AM, 8th November 2023, About 6 months ago 70

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Hello, I repossessed my student property to find the main house electricity supply meter, situated in a bedroom, had been changed to a prepayment meter without my knowledge.

I’ve renovated the house as an HMO (It’s in an Article 4 area), and now I want the utility company to return the credit meter.

They say NO, not until I pay off the unpaid £2,500+ of electricity used by the occupying tenants for the previous 5 years. They say they set up a deemed contract in my name 5 years earlier and that I am liable. They acknowledged they had my contact details on file but never used it to bill me or contact me. The property is now renovated but empty.

What can I do?

Andy


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Comments

DPT

11:29 AM, 9th November 2023, About 6 months ago

Reply to the comment left by david.... (not Goliath) at 08/11/2023 - 15:24
You are perfectly entitled to give the tenants details to a utility company under GDPR as long as you have made this clear in your privacy notice. In fact it is the only way to ensure that you are not the deemed contract holder. You may have been lucky for 42 years, but your luck has run out.

Seething Landlord

12:47 PM, 9th November 2023, About 6 months ago

Reply to the comment left by david.... (not Goliath) at 09/11/2023 - 11:16
If it's a genuine stalemate and all possibilities have been exhausted, both sides will have to accept the position as it is i.e they are £2500 out of pocket, you and/or your tenants have avoided paying but are now denied a credit meter.

Would you extend credit to someone who you believe owes you money that you cannot recover?

Have you tried changing supplier?

david.... (not Goliath)

14:18 PM, 9th November 2023, About 6 months ago

Reply to the comment left by David at 09/11/2023 - 11:29
Yes David, I agree with your statement that "You are perfectly entitled to give the tenants details to a utility company under GDPR as long as you have made this clear in your privacy notice". In my case I was never asked, so your clarification is not required. I hope you can also agree with my point that, likewise, you are perfectly entitled not to give the tenant details, even if you have the tenants permission via your privacy notice. In the case of a shared HMO, I wonder how many privacy notices explain that "if you give permission for me to share your contact details with the utility provider of your property, and there is an outstanding shared debt, then, under the general deemed contract terms and conditions of the utility company, you make yourself liable to the utility company for the whole debt" . In time, with a little help from a Shelter solicitor, a tenant will make a claim against a landlord. My point being that the burden of proof as to whether a property is empty or not should not lie with the landlord. All to often a utility company, who is having difficulty in identifying who their customers are using their supply, will try and make the landlord liable by saying pay up or tell us who the tenants are. Although it has never happened, I would reply with a question asking them to provide evidence that the tenants contract has been determined. I then remind the utility company that a landlord is only liable when the property is empty, and unless I am renovating the property, then no energy will be used. Of course I will pay any standing charge once they tell me what the start meter readings was. this usually puts them in a flat spin.

david.... (not Goliath)

14:40 PM, 9th November 2023, About 6 months ago

Reply to the comment left by Seething Landlord at 09/11/2023 - 12:47Fair point, but the problem is the debt is not proven, it is an alleged debt. Plus the alleged, unproven debt has been incorrectly focused on the landlord but the landlord has not used the supply. The utility company knew the property was occupied but continued to bill the landlord at the rental property. At best it is gross maladministration by the utility company, at worst the utility company is attempting to bribe the landlord into paying by refusing to remove the prepayment meter until a payment, which the Ombudsman says in not collectable, is paid in full. DAP prevents the transfer of suppliers if there is a debt, even if unproven, over £500.

Seething Landlord

15:20 PM, 9th November 2023, About 6 months ago

Yes, it's an alleged debt but they are out of pocket and it seems entirely reasonable that they are not prepared to install a credit meter, given the history and the stance you have taken. Why would they risk a repetition? The prepayment meter removes that risk.

david.... (not Goliath)

15:57 PM, 9th November 2023, About 6 months ago

Reply to the comment left by Seething Landlord at 09/11/2023 - 15:20I appreciate your points but it is not possible for you to know the whole history. They are out of pocket due to their maladministration of billing the landlord at the property when they knew the property was occupied. They actually emailed a tenant for 2 years with my name on the bill! There is no risk of repetition because I made it clear that, for this renovated HMO for the professional market, once the credit meter is installed the account will be in my name. The prepayment meter was installed because the occupying tenants did not pay. Once the tenants left then the purpose of the prepayment meter had been fulfilled and should now be removed. I can't run an 'all-inclusive' HMO with a prepayment meter in a bedroom.

Seething Landlord

16:47 PM, 9th November 2023, About 6 months ago

Reply to the comment left by david.... (not Goliath) at 09/11/2023 - 15:57
Your original question was "what can I do?"

I think the answer is "nothing". If there were a way to compel them to install a credit meter I imagine that you would have found it by now.

DPT

16:59 PM, 9th November 2023, About 6 months ago

Reply to the comment left by david.... (not Goliath) at 09/11/2023 - 14:18
Unless your HMO is a group of friends sharing, then I believe the only system that works is for the landlord to pay the utility costs and charge an inclusive rent. Otherwise you are making tenants who are strangers responsible for each others costs as you suggest, and it will likely become a source of constant enmity within the house.

RoseD

17:25 PM, 9th November 2023, About 6 months ago

Andy (or David) as I'm confused here....you seem to have waged a war with said utility company having a belief you are not responsible and neither are your tenants. Someone has to be and as the landlord I'd certainly be aware if this was my property and notice a change had been made to the metering system. Not too sure what advice you are looking for as you seem to have all the answers so good luck with getting your predicament sorted.

david.... (not Goliath)

18:49 PM, 9th November 2023, About 6 months ago

Reply to the comment left by RoseD at 09/11/2023 - 17:25
Ok RoseD, you are almost there! The landlord cannot be liable as the property has been continually occupied by tenants. The burden of proof is on the utility company to provide evidence that the tenants contracts have been determined, They cannot do this because it was not determined until after the prepayment meter was installed. The daily average usage from the utility companies own 'actual' readings verifies constant occupation by tenants. So of the two parties there can be no doubt it is the occupiers who are liable not the landlord. The problem is getting the utility company to accept this obvious conclusion.

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