Beware – Scottish Power Director’s Clause28 Jun 2012 | Filed under: Cost & Purchase Management
Posted by: Nigel Collins
For a number of years, Scottish Power have included a ‘Director’s Clause’ in their SME electricity contracts (so this applies to non half hourly supplies). The last revision of these terms and conditions was in January 2010 and they are at the time of writing, still current. In essence, this clause (7.2.1) makes the director signing the contract personally liable in the event that the company defaults on payment.
Auditel consultants can offer Scottish Power non half hourly electricity contracts but we will of course make you aware of this clause so as you can take appropriate legal advice. One of my clients has just been advised against accepting a contract with this clause in. I am not aware of any other supplier who includes such a clause.
In any commercial contract, the onus is on the director signing the contract to read the terms and conditions so if you have not been supplied with them, be sure to ask for them. This applies to any energy contract.