Deposit for Flo Gas Account

[Shanneah]

Hi,

I'm in the process of buying my first home in which I plan to live in. The estate is using Flo Gas as the provider of gas for heating, cooking etc. I now need to set up an account with Flo Gas and I must pay a security deposit of €190.00 if I agree to pay by direct debit and a deposit of €290.00 if I don't opt for the direct debit option. This deposit will be refunded upon the cessation of the account with Flo Gas. I find this completely unreasonable.

What if I don't terminate the account for another 20 years? €290 today will have decreased in value substantially by 2026.

What if I never terminate the account. Does this mean they are entitled to keep my money?

Is this legal and is there anything I can do?

Thanks

 

[lff12]

Hi,

I'm in the process of buying my first home in which I plan to live in. The estate is using Flo Gas as the provider of gas for heating, cooking etc. I now need to set up an account with Flo Gas and I must pay a security deposit of €190.00 if I agree to pay by direct debit and a deposit of €290.00 if I don't opt for the direct debit option. This deposit will be refunded upon the cessation of the account with Flo Gas. I find this completely unreasonable.

What if I don't terminate the account for another 20 years? €290 today will have decreased in value substantially by 2026.

What if I never terminate the account. Does this mean they are entitled to keep my money?

Is this legal and is there anything I can do?

Thanks

Unfortunately yes. Bord Gas ask for 200 if you dont pay by DD and eircom used to ask for a sustantial payment if you were a private tenant.
Obviously plenty of people are moving house without paying the full amount and so the companies are protecting themselves, which they are entitled to do.