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Energetics 25 June 2024 approx. 5 min read

Passing the energy sales contract to the heir

Author: Piotr Szlachta
Passing the energy sales contract to the heir

Whether an electricity supply contract passes to the heir following the customer’s death can be analysed, first and foremost, in terms of the energy supplier’s ability to suspend the supply of electricity. Where a consumer is in arrears with payment for services relating to the supply of gas or energy, the energy supplier shall notify in writing the consumer of gas, electricity or heat in a household, or a consumer of gas using such fuel for the production of electricity or heat, of its intention to suspend the supply of gas, electricity or heat, if the customer fails to settle outstanding and current debts within 14 days of receiving such notice or fails to submit, within that period, a request for an alternative solution to the suspension of electricity supply applied by the supplier.

In one such case, the Court of Competition and Consumer Protection considered a matter in which a postal item concerning outstanding payments and the intention to suspend the supply of gas, electricity or heat had been addressed by the transmission company to the name of a deceased person. The letter was not collected by her legal successors, with the result that no settlement was made and the utility company suspended the energy supply. In considering this case, the court quite rightly held that the heir had stepped into the deceased’s shoes in the contract with the energy supplier by continuing to use the electricity supply and paying the bills. It also held that, pursuant to Article 922(1) and (2) of the Civil Code, upon death, the rights and obligations of the deceased arising from the electricity supply contract pass to the heirs. The comprehensive contract binding the previous customer did not contain any provisions to the contrary, and electricity could continue to be supplied to the premises specified in the contract.

The Court of Appeal in Warsaw reached a similar conclusion in its judgment of 13 January 2017 Ref. No. VI ACa 1536/15, in which it ruled on a case where, two days after the customer’s death, her neighbour submitted a request for the removal of the electricity connection passing through her property, which supplied electricity to the deceased’s property, as well as for the removal of the meter owned by her. The meter was removed in the presence of the neighbour, who provided access to the meter. The heir lodged a complaint, arguing that the order had been issued without justification, at the request of an unauthorised person and without prior contact with the applicant.

In passing this judgment, the court also rightly held that, pursuant to Article 922(1) and (2) of the Civil Code, the deceased’s property rights and obligations pass upon his death to one or more persons, provided that the deceased’s rights and obligations strictly connected with his person, as well as rights which, upon his death, pass to designated persons regardless of whether they are heirs, do not form part of the estate. Thus, only property rights and obligations of a civil law nature are subject to inheritance within the meaning of this provision, i.e. those based on a civil law relationship. Undoubtedly, the rights and obligations arising from an electricity supply contract are of such a nature.

There is therefore no doubt that, since the rights arising from electricity supply contracts and comprehensive contracts do not cease upon the death or legal dissolution of the consumer, they form part of the estate as financial obligations and subsequently pass to the heirs.

Judgment of the Court of Competition and Consumer Protection of 7 July 2016, XVII AmE 5/16

The Court of Appeal in Warsaw, in its judgment of 13 January 2017, ref. no. VI ACa 1536/15

Frequently asked questions

Does an electricity supply contract transfer to the heir upon the death of the consumer?

Yes. Property rights and obligations from an energy supply contract enter the estate, so they transfer to the heirs. From the moment of the consumer’s death, their obligations are assumed by legal successors who step into their place in the contract, which is confirmed by case law.

Can an energy supplier suspend deliveries if they do not receive notification of the consumer’s death?

Yes. The supplier may suspend delivery if outstanding amounts are not settled within 14 days of written notification. When a payment demand reaches a deceased consumer and no one receives it, the company will treat this as lack of response and suspend the service. Therefore, heirs should report to the company themselves to prevent interruptions in deliveries.

Does the heir’s use of energy automatically mean taking over the contract?

Yes. The court recognized that an heir steps into the place of the deceased if they continue to use energy deliveries and pay bills. Such behavior means acceptance of the contract terms and assumption of the rights and obligations arising from it. A comprehensive contract usually does not contain provisions that would exclude inheritance of these obligations.

Can a neighbor demand removal of an energy meter after the death of the apartment owner?

In the case under consideration, the heir questioned the meter removal performed without contact with legal successors. However, the matter is not simple: the meter could have belonged to a third party, and the court did not determine that its removal was unlawful. Heirs who entered into the contract should clarify the status of the device directly with the energy company and the meter owner.

This is regulated by the Civil Code in provisions on inheritance: upon death, property rights and obligations transfer to heirs. This includes civil law obligations, and electricity supply contracts belong to such obligations. Only rights strictly connected with the person of the deceased remain outside the estate, and these do not occur in utility supply.

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Author
Piotr Szlachta

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