Domestic energy users being forced onto Business Tariffs

AdKM · 29 April 2014 at 2:47PM

Surely there's a campaign here Martin Lewis?!

Like many people up and down the land I'm sure, I live in flat within a converted house. There are 4 flats in total. All four 'domestic' flats share a communal hallway for which we are told it is standard practice that a business tariff will be charged for the 'Landlords' electricity usage (there is no landlord as such).

We are tiny users. Just 206K/w units per annum. Our bills a couple of years ago were negligible. But the price is rocketing up due to increases in the standing charge. 2 or 3 years ago it was 7p per day. Yesterday it was 24p. Today EDF put it up to 35p. We have tried switching but have been told that EDF are the cheapest and that the other big 5 don't deal with such small 'business users'.

This is a complete rip off! Why must domestic users be forced onto business tariffs in this way? We are just tenants and not a business. The price increase is not even due to the cost of units going up. This is not fair and anti-competitive!

Aquamania · 30 April 2014 at 1:29PM

AdKM wrote: »

Surely there's a campaign here Martin Lewis?!

Like many people up and down the land I'm sure, I live in flat within a converted house. There are 4 flats in total. All four 'domestic' flats share a communal hallway for which we are told it is standard practice that a business tariff will be charged for the 'Landlords' electricity usage (there is no landlord as such).

We are tiny users. Just 206K/w units per annum. Our bills a couple of years ago were negligible. But the price is rocketing up due to increases in the standing charge. 2 or 3 years ago it was 7p per day. Yesterday it was 24p. Today EDF put it up to 35p. We have tried switching but have been told that EDF are the cheapest and that the other big 5 don't deal with such small 'business users'.

This is a complete rip off! Why must domestic users be forced onto business tariffs in this way? We are just tenants and not a business. The price increase is not even due to the cost of units going up. This is not fair and anti-competitive!

If there is no landlord, who does the energy company send the bill to? i.e. who is the account holder?

Suppliers have residential and business tariffs. If you can convince the supplier this is essentially residential usage, then they will probably allow you to apply for a residential tariff.

Either way, if it is primarily residential use, then ensure you are paying the reduced VAT rate which is 5% for residential use (as opposed to the usual 30% for business)

When I lived in a flat, we had a residential tariff for the communal usage which was essentially lighting for hallways once it got dark - hallways were had no access to the public; the outer door was locked with intercom release via each flat.

Also iy should probably be on E7 if on all night like ours was. Even if it has movement activation, then it depends how often it comes on during off peak hours as to whether or not E7 will be worth it.

Looks like you use just over 0.5kWh per day. With a 20W low energy bulb (equivilant to a traditional 100W bulb) that would only use 240W if on for 12 hours. I doubt you have more than 2 such bulbs for a 4 flat hallway.

Low rate electricity will probably only cost you about 6-7p per kWh

Keep away from the big 6. They all charge hefty standing charges which will have a significant effect on such a small consumption.
(I think nPower have a tariff that negates the effect of the standing charge but you have to pay monthly by direct debit ... and they will probably make a mess of the monthly payments due to the abnormally low usage)

If you want the security and service of a big 6 supplier, take a look at Ebico.
I'm sure they will supply you (as long as it is mainly domestic usage) No standing charges, and same price if you wait to pay on bill.
They use SSE as their supply partner, so all billing & front line customer service is from SSE.
Should cost you about £35 a year for the usage you state from Ebico

(You'll need to be careful of any existing terms, especially if you are currently on a business tariff)