The period following the death of a loved one is emotionally and psychologically very stressful for those affected and is often associated with gradually coming to terms with a new reality without the presence of the deceased. At the same time, it must be borne in mind that this phase also involves a number of obligations for the bereaved, which are closely linked to the settlement and management of the deceased’s administrative and official affairs. These matters include, amongst other things, the obligation of the bereaved to arrange for the termination of the contract for bundled energy supply – that is, the supply of gas and electricity – for the deceased’s property. This article provides readers with a basic overview and practical guidance on how to proceed in a situation where a close relative dies and, at the same time, there is a contract for bundled energy supply in place between them and the electricity or gas supplier.
At the outset of this article, it is important to point out to the reader that the death of a relative does not automatically lead to the termination of the contract for bundled energy supply, i.e., for gas and electricity (hereinafter ‘the contract’). The Civil Code establishes the basic rule that, upon the death of the debtor, their obligation does not generally cease to exist, provided that the nature of the obligation did not involve a performance that was to be rendered exclusively by the debtor personally. A monetary payment to the electricity or gas supplier in return for energy supply cannot under any circumstances be regarded as a personal performance.
In light of this, the deceased’s relatives are obliged to terminate the contract with the relevant energy supplier, as this is also in their own interests. There are generally two ways to terminate the contract. Firstly, the supply point can be transferred from the deceased to a relative, so that the energy supply to the property is maintained. Secondly, the contract can be terminated entirely if, for various reasons, the energy supply to the supply point is no longer required and nobody needs it.
In both cases, the relatives must complete the relevant form provided by the energy supplier, depending on whether the contract is to be terminated or transferred to another person. The energy supplier also requires proof of the deceased’s death, such as a statutory declaration from a relative, so that the contract can be transferred or terminated in full. In most cases, a copy of the death certificate is the appropriate document; in exceptional cases, however, the energy supplier may also accept a court order confirming the person’s death. It should also be noted that there is no need to wait until the start or even the conclusion of the probate proceedings to transfer or terminate the contract, as this can take several months in some cases. It must also be made absolutely clear that any outstanding payments or overpayments must be settled between the energy supplier and the heirs.
Should the surviving relatives fail to terminate the contract or transfer it to a new person, the associated risks and potential problems must be taken into account. If they fail to take the aforementioned steps and energy continues to be consumed under a contract in the name of the deceased, this does not automatically constitute unauthorised consumption within the meaning of the Energy Act, i.e. consumption without a valid contract. For the purposes of this article, however, it is assumed that energy bills or reminders for outstanding deposits will continue to be sent to the name and address of the deceased, as the energy supplier is unaware of the death. In such a situation, this may sooner or later lead to the forced disconnection of the consumption point from the distribution network due to non-payment. Reconnecting the consumption point to the distribution network generally incurs a fee, the amount of which varies from provider to provider. In this case too, the surviving relatives are obliged to settle the outstanding energy bill (see below).
If the relatives exploit the death of their loved one to their advantage and continue to consume energy under the deceased’s contract without paying for it, believing that the supplier will only claim the debt from the deceased, it should be noted that the surviving relatives are also liable for the debt incurred. As soon as the energy supplier becomes aware of the death of the deceased, it will check how the inheritance proceedings have been settled and who has been appointed as the deceased’s heir. The energy supplier may then claim the debt incurred at the consumption point from the heirs. For the sake of completeness, it should be noted that the heirs are liable for the energy consumption debt both for the period prior to the deceased’s death, due to the transfer of the deceased’s debts, and for the period after the death, due to the transfer of the rights and obligations under the energy supply contract. Put simply, this means that the deceased’s heirs take the place of the deceased in the contract. In summary, it should be noted that following the death of a relative, all necessary steps should be taken to terminate the energy supply contracts. This prevents the property from being disconnected from the distribution network due to non-payment of energy bills and the subsequent incurrence of unnecessary reconnection charges. At the same time, it ensures that the heirs are not required to settle the debts for energy consumption at the property retrospectively, even if the property was not in use or is occupied by third parties.