The energy supplier is a mystery but the meter is running

Stay switched on, says Sue Hayward, if your gas and electric are arranged by a new-build developer

Sunday 27 July 2008 00:00 BST
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Buying a new- build home is like starting with a blank canvas: no chain to wait on at the seller's end, no hideous wallpaper and no inherited disputes with the neighbours. While this market appears to be suffering badly in the current downturn, with properties in some areas sitting empty and prices collapsing, the National House-Building Council says more than 15,000 new-build homes are still being sold every month.

One appealing aspect of buying new is that all your gas and electrical appliances are hooked up and ready to go. With more than half a million people waiting over six months for energy- billing problems to be resolved, says financial-comparison site uSwitch.com, taking on suppliers from scratch should be stress-free.

But the reality is often different, explains Sheetal Bahal, head of residential property at legal firm Clarkson Wright and Jakes. She warns that while in her firm it's standard practice to ask builders for details of the energy suppliers during the purchase process, other solicitors may not do this. And if you don't have this information, you won't know how much you're paying or when the bills will land.

A spokesman for Ofgem, the gas and electricity regulator, confirms that "it's down to the developer to negotiate the contract and choose the suppliers. Terry Fox, from developer and housebuilder Fox Homes, says it doesn't spend time shopping around for the best deal: "We always stick with big names like British Gas and Scottish & Southern as the purchaser can always switch at a later date if they want to."

Mr Fox adds that, in his experience, homeowners prefer to start off with one of the better-known firms.

Ideally, details of the new property's energy suppliers should be included on the developer's paperwork, which is sent to the buyer's solicitor, typically at the pre-contract stage.

But Ms Bahal says this sometimes doesn't happen: "The gas and electricity supply may not be connected until after you've signed contracts, so no details may be available until then. I have seen cases where services haven't been connected until as late as the day before completion."

To avoid this, she advises visiting a new build between exchange and completion so buyers can come up with a final list of "snagging" items, which may include checking the identities of the suppliers.

Even if this information isn't available early enough to be included on any of the purchase paperwork, the Ofgem spokesman says he would expect "developers to include details within the welcome pack they provide for new homeowners". But this is best practice, not a legal obligation.

Consumer group Energy- watch say that if you're unsure of the suppliers on a new build, your first port of call should be the builder. But if they can't help you, says Robert Hammond at Energywatch, look at your meter: "Each one has a unique serial number, typically eight or nine digits long, which can then be used to trace the supplier."

For your electricity, call your local distribution company giving this serial number. "Each one keeps a record of who supplies electricity to every home in their area," says Mr Hammond. You can find contact numbers for the distributors at energywatch.org.uk

To trace your gas firm, you'll need to contact the transporter, which will either be National Grid, Northern Gas Networks, Scotland Gas Networks, Southern Gas Networks or Wales & West Utilities. You'll need to either use Meter Point Administration's online service, or call a central number: 0870 608 1524.

Another reason why the identity of your supplier may prove elusive, says Mr Fox, is that "people get confused between plot numbers [used throughout the building process] and the postal or house number used after completion". He adds that it's important to be clear which number you're using depending on which stage of the sales process you're at.

In the event that the situation drags on and you're finding it impossible to trace your energy suppliers, the more reassuring news is that domestic customers can only be "backbilled" for a maximum of one year; the limit used to be six years. The caveat, however, is that you must be able to show you've made reasonable attempts to trace your supplier – for example, by supplying letters written to your builder as proof.

'I'm really worried that we'll get a nasty letter demanding payment'

Dawn Martin, 28, and her husband Simon, 36, bought a brand new three-bedroom townhouse on a development in Ruddington, Nottingham, in May.

"The house was great. We were given our welcome pack by the building company and we moved in," says Dawn. "But then we realised we didn't know who our energy suppliers were, though both gas and electricity were connected and we were using them.

"We'd been paying £100 a month in our previous home so were worried about running up bills when we didn't know who to pay."

The couple contacted the builder's sales office, which said EDF was supplying both gas and electricity. Yet after contacting EDF, Dawn says it claimed it wasn't their supplier.

"Simon found code numbers on our meters and we gave these to National Grid. It too said EDF was our supplier."

Dawn tried a website that provides information on utility suppliers for new homeowners. This service said they were with British Gas.

"Simon has spent ages ringing round and all because we want to pay the bills," says Dawn. "I'm really worried that six months down the line we'll get a nasty letter demanding payment. But we've done all we can and the building firm isn't being any help in sorting this out."

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