Change of Tenancy (COT) &

Change of Occupier (COO)

What are COTs and COOs?

COT stands for Change of Tenancy and COO stands for Change of Occupier. These two acronyms are used interchangeably in the energy industry but essentially mean the same thing. They cover the process for an energy supplier where a customer either moves into or out of a property, or where the ownership/name of the company registered at the premises changes. When a COT/COO happens the responsibility for paying the utility bills changes.

Why are COTs and COOs important?

The COT/COO process is carried out by the energy supplier to ensure that contracts are agreed upon and enforced correctly and that the company responsible for paying for the energy ultimately does indeed pay. 

Whilst COT/COO processes have always been in place to check the legitimacy of company moves, since the energy crisis when customers attempted to illegally exit high fixed-price supply agreements, suppliers are now more robust than ever in carrying out the relevant checks. As a result of this, the length of time taken to carry out a COT/COO has increased considerably, averaging up to 3 months across the industry. 

What can go wrong?

Outgoing tenants/owners could find themselves being liable for energy consumed by the new tenant/owner. If the contract has expired, these could also be at inflated Out-of-Contract rates. 

New tenants /owners, who move into premises without a contract already in place will find that they are liable to pay punitive Deemed Rates, which will be significantly higher than Contract Rates. These will continue to be paid until a new contract is successfully agreed upon and implemented. 

What do you need to do?

Outgoing tenants/owners must inform their energy supplier that they are leaving the premises and provide a meter reading so that a final bill can be prepared, and the account closed from an agreed date. 

For incoming tenants/owners, a new supply contract will need to be agreed upon and put in place with a supplier well in advance of consuming energy at the premises to ensure the new tenant/owner only pays the agreed contract rate. 

For both above scenarios to be concluded, sufficient time must be allowed to ensure that the required checks/processes are made.

What do you need to do?

Online forms and contact numbers related to COTs and COOs will be found on the website of the incumbent energy supplier to allow the COT/COO process to commence. 

To validate the legitimacy of the COT/COO request the supplier may request some / all the following data:

• Copy of fully signed and dated lease or sale agreement.
• Confirmation from the landlord.
• Confirmation from the estate agent handling the move.
• Confirmation from the solicitor handling the move.
• A copy of the mortgage completion letter (if the property was bought).
• Contact names, telephone numbers, and email addresses for existing and new tenants/owners.
• All meter reads and serial numbers (including photos) taken at the time, or as near as reasonably possible, of the change.
• Company Registration Numbers for the companies involved. 
• Existing supply invoice for the premises.

Will the time to process improve?

The ~3-month timelines for the COT/COO process very much fly in the face of OFGEM’s plans for faster switching. Whilst the issue has been added to the agenda of the next OFGEM TPI Forum, little hope is held that this will be improved soon given supplier requirements to assess the legal validity of tenancy/occupier changes.

How can we help?

Once on supply Adalta Energy will largely take away the stresses of COT/COOs. As part of our Service proposition, your dedicated representative will smoothly manage the interface with the supplier on your behalf.

Before a supply agreement starts with the support of Adalta Energy, it is often best to manage all COTs/COOs internally as you are often best placed to provide the information requested by suppliers. However, your Adalta Energy contact will always be available to offer guidance and advice to help you through the process.