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Electricity in communal areas - business or residential?

slicktony
slicktony Posts: 5 Forumite
I live in a house split up into five self contained flats. The electricity bill for the communal areas is on EDF's standard residential tariff and in the name of someone who sold his flat years ago.

I'm quite keen to change our tariff - which has a standing charge so we seem to be paying around £60 a year for 65kWh to operate the door buzzer and corridor lights! - but I'm concerned that we might have to pay business rates even though there is no management company invovled.

Does anyone know if business rates apply to communal areas in flats and what the difference between business and residential rates might be?

Comments

  • spiro
    spiro Posts: 6,405 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Steer away from any business tariff, reasons being - higher VAT, climate levy charge, fixed terms contracts, sky high rates if you forget to renegotiate your contract on the correct date which will see you locked in again.

    As the primary use (50% or more) is for residential purposes and no company is involved then domestic tariff is fine.
    IT Consultant in the utilities industry specialising in the retail electricity market.

    4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).
  • dogshome
    dogshome Posts: 3,878 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Hi slicktony - From your post it appears that the maintenance and running costs of this converted house are managed directly by the flat holders and the lighting for the public areas has it's own meter, all of which is about as good as it ever gets for flat dwellers.

    Stay well away from Business Utility contracts, they are an absolute minefield for the unwary, particularly the small user and have a 20% VAT rate.
    As a group of domestic residents paying directly for the corridor lighting to reach thier own front doors in safety with no commercial Landlord involved, you do not fit the required profile for a Business Utility contract - and tell any of the telephone sales sharks swimming in the murky waters of Business contracts to take a running jump
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