Commercial energy firms supplying domestic users

[pichichi]

Hi,

I'm new to the forum and just wanted to see if anyone could offer some advice on a problem I am currently having.

Basically I was contacted a few weeks back by an energy broking firm called Commercial Power who claimed to be able to save me 30% on my electricity bills. .

Anyway, having stupidly agreed to this over the telephone I entered into a verbal contract with a company called Bizz Energy who are a commercial energy supplier. Something I should just say at this point is that I am actually a domestic user. Commercial Power got my contact from the yellow pages where I have a listing for a business that I am currently in the process of setting up. This however is not a registered business it is simply a business name associated with the residential address I currently occupy. This fact was mentioned to the brokers who said that it did not matter.

A week or so on I realised what a huge mistake I had made after discovering the rates I was paying with my existing supplier were less than half what were quoted to me by CP therefore I felt that I had been badly mislead by the sales represenative who told me that switching to Bizz would save me 30% when in fact moving to them actually more than doubled my rates!

I'm trying not to waffle here but basically I am trying to find out if any rules have been broken here. Bizz Energy claim that they are entitled to supply domestic users with commericial supplies though as my property is not offically recognised as a business address, does this claim hold any water? Furthermore Bizz energy have told me that if I wish to terminate the contract I would be subjected to a termination fee and no cooling off period is available as consumer rights do not apply to what is technically a business to business transaction. I have contacted Energywatch who have been very helpful though at this stage they are limited in what they can do for me as the transfer from my old company to Bizz is still in process and I do not yet have an account number.

Does anybody know where I might stand legally here? If I refuse to pay a termination fee can Bizz prevent me from switching back to my old (or any other supplier)??

Any advice on this would be very much appreciated.

[tiglet]

I would leave it in the hands of the energy ombudsman for the moment. Do you ahve anything in writing from these people? Have you stated to the EO that they misrepresented themselves on the phone by claiming to be able to save you money, when in fact it would cost more?

Might be worth while advising trading standards too.

[pichichi]

I have nothing in writing other than a feeble response to my letter informing Commercial Power that I felt they had mislead me over prices. The reply stated that terms and conditions were made clear by the sales rep (not true) and that to cancel the contract would incur a penalty fee (not mentioned at the time).

Thanks for your advice. I already have energy watch on the case and will be contacting trading standards over the conduct of Commerical Power.

[tiglet]

Excellent - I would get the ombudsman involved as well - the more officials putting pressure on them, the more likely it is they will back down.

As you said you haven't received anything from them, should I assume that this means they haven't sent you a contract to sign? If no contract, and no recording of the teklephone call, surely it's your word against the agents?

[pichichi]

I have no paperwork at all but there is a recording of the telephone conversation which I actually just received today. I'm quite worried now as the sales rep does state that a cancellation fee would apply if I were to terminate early and given that this is a 4 year contract I imagine any penalty would be quite hefty. I must have been on another planet at the time of this conversation as I do not remember half the stuff that was said.

On the plus side the address they have me confirmed with is not my actual address. In the recording both the house name/number are incorrect as is the postcode. Furthermore I made it clear that the property is a domestic address. The contract is also binding between Bizz energy and my "company". I have no company and no business is officially associated with my address therefore if neither the address or business legally exist how can the contract be valid?

[ozzywizard]

I do not think it can be valid due to the missinformation also it was missold so I would phone your current suppliers and register it as an erroneous transfer.

[pichichi]

Thankyou. That's exactly what I did today. Scottish Power were very helpful. I will keep you posted on how things progress

[ozzywizard]

Please do and good luck.

[rich200]

well m8 i have had nothing but pain from biz they state one thing and do another never reply dont ever record details that are not in there favour and told me today that they didnt record conversations till the 5 of march this year very handy as they agreed last month to back date my bill if i signed a contract with them looks like i be going to the energy ombudsman also as i got a bill for £255.00 for three month use and the total electric usage on that bill is wait for this £11.64 the rest is standing charges so good luck m8

[pichichi]

They are a joke. The contact information they have for me is completely inaccurate. They are in fact supplying a fictional address which is why I can now understand why no approach to Scot Power to transfer me was ever made. At the moment I am registered with 2 different energy suppliers. Biz are having a laugh as last week I received a bill for 15 days use at £111! This was an estimated bill (not suprising as the electricty meter they have on record doesn't exist either!) The good news for me though is that as I am not responsable for the address they are supplying energywatch will hopefully be able to get them to cancel it and that should be the end of it. Will keep you posted.