Do Home Owners Close Utility Accounts When They Vacate Their Main Residence

justwii on 05/09/2024 - 17:02
Last edited 05/09/2024 - 17:26 by 1 other user

We recently moved out from our main residence and started renting, while we put the property on the market for sale.

No one should be using gas and water, probably minimal electricity for lighting or even none at all when the open houses are in daytime, so there is no need to pay for utility usages.

But we wonder if we still need to keep the accounts open and are responsible to pay for the service fees (gas, elec, water) because we are still the owner of the property until it is sold, or do people normally close these accounts in this situation?

Thank you!

Home & Garden Electricity Gas Supply

Comments

  • Xyzzy on 05/09/2024 - 17:15
    +11

    If you're trying to sell, you'd normally leave them on, so people inspecting the property can see that the appliances and taps, toilets etc are working.

    • freefall101 on 05/09/2024 - 17:45
      +2

      This. Just ask the real estate agent to turn the power on/off for each viewing.

      A house with no power will look like crap on a cloudy day, probably worth the few bucks to help sell.

      • justwii on 05/09/2024 - 18:09
        -7

        But I don't think closing the accounts means cutting off your supply?

        • freefall101 on 05/09/2024 - 18:14
          +5

          Why would they keep supplying you when you've closed your account?

        • JDMcarfan on 05/09/2024 - 18:19
          +2

          You need clear up between closing your account and disconnecting your property.
          If you want to close your account with them (like you imply) then the energy provider will need details of a new person to bill so they can pass on usage fees too. No energy provider will close your account without looking having recourse to collect utility fees. (Think of it like car rego)
          If you want to disconnect your property to avoid daily service fees, both you and the renter will be paying disconnection and connection fees that will amount to more than the daily service fee over the vacancy period.
          Closing your account without providing a new user is equivalent to disconnecting. Otherwise every vacant house would be a grow lab/crypto hub

          • lgacb08 on 05/09/2024 - 20:19

            @JDMcarfan: That's very naive view of how energy retailers work, in the majority of cases they will leave the premises connected because of the hassle of disconnecting and potential implication of such action. I bet you if you call them up to close the account because you move out, no one will disconnect any of the gas, electricity or water. It only becomes a problem if they see consistent usage then they will start sending notices to the address, but it will take at least a few months before they actually do that (for gas or water, electricity can be shorter).
            Source: I moved into current property and took agl over 6 months to disconnect gas service, I never sign up for gas because it's only used for portable heater and BBQ, everything else is electricity.

        • JimmyF on 05/09/2024 - 21:29

          What state are you in? In VIC close your power account and the meter is remotely turned off.

          • markathome on 06/09/2024 - 09:26

            @JimmyF:

            What state are you in? In VIC close your power account and the meter is remotely turned off.

            Bit interested in this. Have you experienced a remote turn-off?

            I live in Victoria and worked in the electricity industry ages ago. lgacb08's description is closer to what I'd expect and is the method used for me as someone who hasn't ever lived with a smart meter (no electricity tracking either so it's not all gravy).

            There's no technical reason why they can't remotely switch off the power but there are some practical and safety reasons. If you switch off the power while somebody is closing their account, there's a chance you'd lose the call. Far, far more of concern to power companies: if they switch off the power after dusk, and the person in the house falls as a result of the lack of lighting - the power company is in a sticky legal position.

            None of the above is insurmountable, which is why your post JimmyF has piqued my interest. Are you sure the "remote turn-off" wasn't just the meter reader switching the power off as he drove through the area?

            • JimmyF on 06/09/2024 - 11:16

              @markathome:

              I live in Victoria and worked in the electricity industry ages ago.

              Ages ago as in before smart meters had been rolled out?

              There's no technical reason why they can't remotely switch off the power but there are some practical and safety reasons. If you switch off the power while somebody is closing their account, there's a chance you'd lose the call.

              Most people use mobiles these days, but they can delay the power being turn off until the call has hung up. I'm sure they are aware of this 'issue'.

              Are you sure the "remote turn-off" wasn't just the meter reader switching the power off as he drove through the area?

              It is a 'thing'.

              See point 3 -> https://www.ausnetservices.com.au/electricity/your-electrici…

              or here https://www.energyaustralia.com.au/home/help-and-support/faq…

              Or look at the fees in VIC for remote disconnect etc.

              https://www.energyaustralia.com.au/home/help-and-support/faq…

              Or if you have a smart meter in VIC, just stop paying your bill and see what happens :)

              Gas and water meters are all still old school and manual. So won't be remotely disconnected or disconnected in general as there is a cost to do this. So they just wait for the next person to come along.

              • markathome on 06/09/2024 - 13:50

                @JimmyF:

                Ages ago as in before smart meters had been rolled out?

                Yep.

                It is a 'thing'.

                Yep. Seems you're right. They definitely don't just turn off your power because you are a little late with a payment, the procedures are quite rigourous. But it does seem they do remote disconnections now.

                • JimmyF on 06/09/2024 - 14:06

                  @markathome:

                  They definitely don't just turn off your power because you are a little late with a payment, the procedures are quite rigourous.

                  Its not cutoff if you're late by a few days, but if you stop paying your bill it will be cutoff once they go through the standard processes, now days its just done remote, rather than someone coming out and pulling the fuse.

                  In NZ, they have prepaid power meters. That turn your power on and off as you pay for it. Run out of credit, out the lights go. If your account drops below $10, you fall into Orange status, meaning your power will be disconnected at midday the next day unless you top-up before then. Great for those with bad credit ;)

                  Here is one company that offers such a service in NZ

                  https://www.globug.co.nz/how-it-works/

                  But it does seem they do remote disconnections now.

                  They do. It makes sense, as you used to get that period of one person moving out, closing the account and the next person getting lumped with all the power usage that happened while the account wasn't assigned to anyone.

                  And remote disconnects certainly happen, rental agents will tell you not to disconnect the power until final inspection, as if you need to redo something you won't have power.

          • lgacb08 on 06/09/2024 - 13:56
            -2

            @JimmyF: No it doesn't, I also moved in vic years ago and the new property still got connected. If you closed the account they will wait for a while to do that.

            • JimmyF on 06/09/2024 - 14:03

              @lgacb08:

              years ago

              So before smart meters? Cool

              Anyhow, I never said it was instant, but once you request closer of your account it will be turned off as soon as no one is paying for it. Rental agents in VIC will tell you not to disconnect the power until final inspection, as if you need to redo something you won't have power to do so and have to get it reconnected 😂

              • lgacb08 on 06/09/2024 - 16:44
                -2

                @JimmyF: Nah, not that long. Smart meter has been in vic before I even knew what utility bill was. You can assume whatever you like but I tell you it will take months before you be cut off power after not paying bill. This is not third world country that you can have such thing happening. And nz should be classified as such if that's the case. The cost of disconnecting and listening to complaint is way higher than a measly few kwh of someone flicking the light on and off. But they'll definitely notice if you grow your hydroponic lab without paying.

                • JimmyF on 06/09/2024 - 19:02

                  @lgacb08:

                  You can assume whatever you like but I tell you it will take months before you be cut off power after not paying bill.

                  LOL Ok, so you're now changing the story, we're talking about customers requesting closing the account, not someone not paying the bill. Remember the comment you first replied to? Nothing about not paying the bill, it was about CLOSING your account.

                  But yes if you don't pay your bill, they'll go through the 'process' they have, it takes months but it will end up with a remote disconnect.

                  • lgacb08 on 07/09/2024 - 14:53
                    -2

                    @JimmyF: The story is the same in any scenario, stop pestering around and use the pathetic story across the ditch to make your case. In simple terms retailers just don't go around remotely disconnecting service just to save a few bucks because the hassle is more than what's worth. They're not that desperate like you think.

                    • JimmyF on 07/09/2024 - 18:51

                      @lgacb08:

                      The story is the same in any scenario

                      It is not the same, one is not paying your power bill, one is requesting to close your power account. Two totally different events with different processes.

                      stop pestering around and use the pathetic story across the ditch to make your case

                      What story? I'm just stating the facts about smart meters, something you should try instead of changing your story as you go along.

                      In simple terms retailers just don't go around remotely disconnecting service just to save a few bucks because the hassle is more than what's worth. They're not that desperate like you think.

                      Oh but they do. A remote disconnect of the power meter doesn't cost them anything, they push a button and the power is shut off.

                      Maybe go read the links above that I posted by the power retailers themselves and stop making up pathetic lies on how you think smart meters work.

  • Shoocat on 05/09/2024 - 18:10
    -3

    When it comes time to settle with the new buyer, your conveyancer/lawyer should organise pro-rated splits of the utility bills so you pay the share when it was owned by you, and vice versa for the new owner.

    • lgacb08 on 05/09/2024 - 20:21
      +3

      They only do that to council rate and water charge (not water usage), everything else is between whoever got the name on the bill.

  • MS Paint on 05/09/2024 - 18:22
    +6

    No. Don't be a tightwad.

  • Counter Intelligence on 05/09/2024 - 18:36
    +3

    Unfortunately, these problems seem to arise primarily with sellers who set their prices too high, causing their properties to linger on the market for over six months. If you can afford to price your property so steeply that it takes this long to sell, you should also be able to cover the utility costs in the meantime.

    Seriously, it’s a fraction of the selling price of your house. You are likely spending more on the cost of conveyancing alone.

  • JimmyF on 05/09/2024 - 21:28
    +1

    No one should be using gas and water, probably minimal electricity for lighting or even none at all when the open houses are in daytime, so there is no need to pay for utility usages.

    If I inspected a property that didn't have power turned on, that would be a massive red flag and I would run away. Same for water, gas I'm meh. But generally for water/gas they don't turn it off, but power can be remotely turned off when you close your account.

    But we wonder if we still need to keep the accounts open and are responsible to pay for the service fees (gas, elec, water) because we are still the owner of the property until it is sold, or do people normally close these accounts in this situation?

    Why wouldn't you be responsible if they are turned on? You own the place!

    Keep them on until you sell the place, then you can disconnect.

  • Tily on 06/09/2024 - 00:48

    We moved out from our old home to new home recently and the house was put in the rental market. Not the same but similar to your situation. We left all the utilities going as it was still needed for the cleaners, handyman, open house, alarms, cameras, etc.

    I cancelled our gas account first as we knew no gas was going to be used anymore. Water we were told that that the REA will sort it out when we got our tenants. In your case best to call the Water people and ask. It might be your conveyancer that deals with the Water side of things. We left the electricity and internet to the very last moment before our tenants moved in. Do take note that there are minimum days required for electricity disconnections. Was not aware of this and was not able to disconnect when I wanted to. Ended up pay for two additional days of power which my tenants used.

    I would suggest taking photos of all your final meter reads for your records. I was able to submit my final gas and water meter reads online. Electricity we have smart meters so that reflected automatically on the account.

    • sam-1966 on 06/09/2024 - 16:40

      Wouldn't prospective buyers like to make sure gas burners and/or hot water are working?

      • Tily on 06/09/2024 - 18:35

        Gas account might be closed but gas doesn’t actually get cut off in the street. So if prospective buyers really wan to check, they still can.

  • Shadowsfury on 06/09/2024 - 09:07

    I would not be impressed if the lights were off during open homes…Let alone the inability to properly perform final inspections if buying the property.

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