Landlords should take note of their potential liability to gas and electricity suppliers under deemed contracts after their tenants vacate premises. Suppliers benefit from statutory provisions which mean if they supply vacant premises with gas and electricity and the previous tenant's contract with the supplier has ended the supplier may have a deemed contract with the landlord.

When a tenancy ends a landlord will want to discover: Who makes the supply? What are the termination provisions of the tenant's contract with the supplier? When does the supplier consider it has a deemed contract with the landlord?

A landlord should take steps to prepare for this before the event. Know who your tenants' suppliers are, on what terms, and whether or not the contract includes enhanced capacity. Talk to tenants prior to the end of a tenancy to discover what arrangements they have made to terminate the supply or contract.

After a tenancy ends contact the suppliers. If there is a deemed contract then ask for a copy of the terms so you know your potential liability as landlord. Consider removing extras under the supply contract, changing suppliers or disconnection and the costs and notice periods of doing so.

Preparation and information gathering is, as with other aspects of property management, preferable to surprise bills and arguing the matter after the event.

If you require any further advice or assistance please contact John Southan or a member of the Property team at Wortley Byers on 01277 268357 or jsouthan@wortleybyers.co.uk.

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