Comparison website uSwitch – now owned by property portal Zoopla – has hit out at landlords and agents who allegedly deny tenants the right to switch energy suppliers.
The new accusation comes despite a high-profile BBC Watchdog investigation in 2013.
The BBC then named Reeds Rains, Your Move and Foxtons as having links with Spark Energy. All the firms vehemently denied any wrongdoing.
uSwitch has now opened fire again, and said that 13% of landlords are denying tenants the right to switch, with 19% of landlords with three or more properties preventing a switch.
uSwitch says 36% of landlords wrongly believe that by naming a preferred supplier in rental agreements, they can stop tenants switching.
Research earlier this month was conducted among 500 landlords and 1,000 tenants.
Based on this, uSwitch calculates that 230,000 tenants who have not switched say it is because their tenancy agreement forbids it.
uSwitch is now calling on the Competition and Markets Authority to insist that all tenancy agreements should state that tenants who pay for their energy directly have the right to switch suppliers.
It is also calling on letting agents and landlords to drop unfair clauses in tenancy agreements, and to inform tenants at the start of each tenancy about how to switch.
Comments (11)
I have experienced this issue myself. I used to rent a property through one of the firms mentioned in the story and part way through a tenancy we had a change of tenants. We informed the agency, who drew up new contracts etc and asked us to come into the office to sign them. Now, my fault, I didn’t read through all 30 or so pages again, especially as the agent said that ‘all is the same, other then the tenant names’, so we signed on the dotted line.
A week or so later I received a ‘sorry you’re leaving us letter from British Gas’. I contacted them to explain I was not leaving them and they informed me that I was moving to Spark Energy and that I should thus call Spark. Getting through to Spark was a nightmare in itself and once I did get through things didn’t improve much, but they did tell me that my agency had requested the change.
So, I contacted the agency and they told me that yes, this was the case and I had agreed to it, as it was contained in the new contract. I said that I’d like to alter that, as I didn’t want to go with Spark, but the agency claimed that as a tenant I was unable to decide which provider I chose to go with! Knowing the legislation, I checked with my landlady, to see if she had knowledge of this – she did not and was unhappy with the agency too.
The agency refused to admit that they were in the wrong anywhere, so I had to resign upto British Gas, get rid of Spark, which due to them being utterly useless was much easier said than done. Months later all was back to normal, but as far as I know, the agency were still adding Spark as a provider too all new contracts and were no doubt on a commission share with them. I imagine they were still telling less-informed tenants that they had to agree with this too.
And, this particular agency is one of the ZPG board members, so now they have access to uSwitch too! It all sounds a bit worrying to me.
Smart keeps away from Zoopla. (and always reads the contract)
I am with Neilw on this. You can put as many terms as you like into a tenancy agreement but if they are legally incorrect they are unenforceable.
For years now I’ve just been asked to be told.
Also, can anyone explain the benefit to the landlord of insisting that the tenant use this power company instead of that one? I get that the agent might benefit by getting a commission, but the landlord won’t.
I was under the impression OFT & EU rulings had already ruled on this issue and an agent cannot insist a tenant uses a particular supplier. Pity the survey did not highlight the commissions the Agents receive and did they get the Tenants permission to take it along with the Landlords. Another Agents hidden fee.
I really can’t understand why agents want to stay with zoopla. This is more evidence that they want to apply increasing influence to agents’ sellers and buyers, landlords and tenants.
Careful, wilko – you’ll get ‘Digital Expert’ all hot and steamy under the collar and he’ll be forced to come on and post “factual” pro-duopoly billshut before his latest wounds have healed.
Could be messy… ;o)
Digital Expert did run off mid thread so will no doubt lay low for a bit.
I can’t understand why anyone would be against a tenant changing supplier to save money?
What has it got to do with the agent? Or is just that you are against consumer choice?
Sorry guys I didn’t run off – I work for a living!
Oh Peebee, bless. I have replied on the other thread.
or more so…….. the real reason behind the Z acquisition uSwitch begins!
Just wait for that Estate Agent or Letting Agent tab to appear! So who wants to be the cheapest on the comparison site….. Will £495 all in get me top spot for selling?
87% of landlords allow tenants to switch. Too many people and companies dwell on a negative figure to gain headlines.
ooops! Looks like oopla forgot to check this quite important point before it bought ucan’tSwitch……