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Standing Charge

Hi,

I live in a flat and when we moved in our landlord asked if we would mind staying with his gas provider as he got a good rate for the building (which has businesses below us). We didn't mind as the rates seemed good which included a 8.9p standing charge per day.

We recently got a gas bill with a standing charge of £1.53 standing charge per day. This was quite a shock obviously as it was a massive increase since our last bill with out any warning!

We aren't able to talk to British Gas about it as the account is not in our name and our landlord has told us that the reason for the change is because he had made a mistake and the standing charge should always have been the higher rate.

We have asked to change provider but he has told us we can't because he didn't have the correct gas pipes put in for residential use as it would have cost his £3500 at the time he converted the property. So we are stuck. With a massive gas bill looming over out heads and no idea where we stand.

If anyone has any advice it would be greatly appreciated!

Comments

  • dogshome
    dogshome Posts: 3,878 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Hmmm - It seems that your L'lord because of the business, has the entire building on a Business tariff which is possibly very bad news

    Business supply contracts are individually negotiated between the supplier and customer, and whilst BIG businesses can get good prices, smaller businesses will struggle to the prices down below, or even on par with domestic prices

    Are the bills you get from the L'lord fully detailed as how many Kwh of Gas & Elec you have used and the price per Kwh? - Also Business supplies carry a VAT levy of 20%, not the 5% for domestic - So what's the VAT on your bills?

    I suggest you look at the cost of your annual consumption on the Switch sites and then compare that with what you will paying the L'lord with the uplift in standing charge - If you a paying a big premium you either negotiate with the L'lord or give notice
  • Thanks for your replies. It is not in our tenancy agreement that we should reimburse the LL for gas, but I would be worried that he would give us our notice very quickly if we told him that its his problem.

    I think to move out is the most likely ending here, just want it to be on our terms rather than his as we aren't able to move for a couple of months. Sounds like we will just have to pay up and get out as soon as we can.

    Do you think it would be worth a chat with Citizens Advice? I don't know if this is an area they get involved with.
  • 2010
    2010 Posts: 5,549 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    eitak86 wrote: »
    Thanks for your replies. It is not in our tenancy agreement that we should reimburse the LL for gas, but I would be worried that he would give us our notice very quickly if we told him that its his problem.

    I think to move out is the most likely ending here, just want it to be on our terms rather than his as we aren't able to move for a couple of months. Sounds like we will just have to pay up and get out as soon as we can.

    Do you think it would be worth a chat with Citizens Advice? I don't know if this is an area they get involved with.

    Why don`t you ask your LL for a rebate because you are unhappy about the SC.
    He`s the one who`s benefitting with cheaper business rate gas.
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