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Don’t Get Stung by Deemed Rates: Smarter Void Management for Landlords

  • simon7110
  • Oct 1
  • 2 min read

Empty units can be costly, and not just in lost rent, especially as energy suppliers get more aggressive around Change of Tenancy and releasing the supply to a new provider.


Energy suppliers automatically put void properties onto “out of contract” or “deemed” rates, often two or three times higher than contracted rates.


Worse still, suppliers are increasingly aggressive at recouping debts left behind by previous tenants, meaning the landlord (or managing agent) is often left to pick up the pieces, and the new tenant is stuck on very high rates whilst also being denied their choice of tariff.


One example in Wolverhampton is of a restaurant in Castlecroft. They moved in during February and provided the tenancy agreement to the incumbent supplier, and signed a contract at very competitive rates.


The name of the business... a Limited Company... contained one word that was the same as the previous tenant, who had left a large energy debt, as their business failed.


The incumbent supplier refused to recognise the change of occupancy, for no valid reason, and on three occasions refused to hand over supply.


Their reason? They claimed confusion over the name... despite being provided with sufficient documentation to show that the new tenant was a completely separate legal entity, with absolutely no ties to the previous business.


The contract with the new supplier expired, as happens after three refusals, so the customer was left on exorbitant deemed rates for SIX months, receiving many confusing responses and emails to their complaints.


Wolf Pack got involved and resolved the matter within a week.


The trouble is, the market had moved... so the new contract was at a slightly disadvantageous rate to the original contract they had signed six months prior.


OFGEM only kicks in eight weeks after the final response from the incumbent supplier, meanwhile we are organising legal action to recoup the difference between the deemed rates and the incorrectly rejected new contract, the difference beween the first contract and the second contract going forward, and a discretionary payment for the stress and time taken to resolve.


We will update you with the result of that action, it doesn't bode well for the bad actor supplier.


If this was a one-off incident it could be put down to a calamity of errors, but we are seeing dozens of these incidents, and worse, in the last year.


The challenge:


A gap between tenants can mean weeks or months on expensive deemed rates.


Some suppliers will refuse to open new accounts until debts are settled, even when they belong to the old tenant.


This creates unnecessary costs and disputes that could be avoided.


New tenants are being penalised to recover losses from a previous tenant.



Wolf Pack Energy’s solution:


Rapid supplier switches to get new tenants onto competitive rates immediately.


Mediation with suppliers to separate old tenant debt from the landlord’s account.


Proactive void management support, ensuring landlords and your tenants are never penalised for someone else’s usage.


Call Wolf Pack Energy on 01902 519 069 to find out how to protect yourself, and your tenants.

 
 
 

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Wolf Pack Energy Ltd is a limited company registered in England and Wales, Reg No 16500346 and registered at Wolf Pack House, 12 Ashley Gardens, Codsall, Wolverhampton, WV8 1AX

No upfront costs, or admin fees, commission is fully declared and earned on the amount of energy you use, and how long you secure for.

Wolf Pack Energy specialises in lowering your costs, saving you time dealing with call centres, validating bills, and helping resolve any disputes you have with your energy supplier

For more information email info@wolfpackenergy.co.uk or call 01902 519069  

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