Moving into flat with coin operated electricity meter - advice needed

poppyfreckles

Hi everyone,

My partner and I found a flat that ticked all of our boxes - allowed our cat, close to the tube, south facing garden - and was below our maximum budget.

The only major gripe about it is that we have to pay for our electricity using a coin operated electricity meter. The estate agent told us that the current tenant paid about £30 per month, which seemed more expensive for what we normally pay, but we figured that given the saving in rent it wouldn't make too much of a difference.

The rent also includes gas heating, but controlled by the landlord - set for 9 hours a day in 3 hour blocks. We're really hoping it'll keep us warm enough, we normally have the heating on for less time.

Both of those things are not great, but we decided to go ahead with it because it's so hard to find a place that accepts cats.

I was wondering whether anybody has ever been in a similar situation, and if you have any advice to give us. How do we know that we're not being ripped off re: electricity, is there anything we can do to protect ourselves, and any other advice?

Thanks!

spiro

A coin operated meter will be one owned by the LL but there are rules on reselling electricity but they are allowed to add an admin fee. I would check how much he is charging as also ensure he is only adding on the domestic rate of VAT as he will be paying the commercial rate plus CCL.

stator

Yes check out what price the meter is set to. It's not unusual for the LL to set a rip off tarriff

Robin9

£30 a month does sound a little low

footyguy

spiro wrote: »

A coin operated meter will be one owned by the LL but there are rules on reselling electricity but they are allowed to add an admin fee. I would check how much he is charging as also ensure he is only adding on the domestic rate of VAT as he will be paying the commercial rate plus CCL.

Agree, a coin meter would be owned by the LL, so the LL is effectively your supplier (and he won't let you change that)

Agreed there are limits as to what the LL may charge. I always thought he was not allowed to profit from the sale of energy .. but he is under no obligation to buy the cheapest available; he could chose to buy the most expensive.
If my undertstanding is correct, any admin fee can only be an amount that actually meets his cost in supplying you the energy.

In regards to VAT, then any alteration of that he pays and that he charges would only presumably apply if the LL was registered for VAT.

Depending on the set up, if the primary use of the electricity supplied (by the supplier to the LL under the main meter) is that for residential/domestic purposes, then the supplier should only be charging the LL the reduced 5% VAT rate anyway (even if it is a commercial tariff).
Getting the LL to agree to get his supplier to correct it (if necessary) may not be so easy though.

Cardew

The landlord is not supposed to make any profit from a sub-meter and you should be charged at the domestic rate. See:

https://www.citizensadvice.org.uk/consumer/energy-supply/energy-bills/paying-your-energy-bills/paying-your-landlord-for-energy/

If your usage is recorded by a meter

If your consumption is recorded by a meter your landlord should bill you for the units used, plus your share of any standing charge at the same price as he paid his supplier. Your landlord can only charge you the domestic rate for energy, even if he has a business contract with the supplier.

poppyfreckles

Thanks everyone for your replies.

We emailed the agency today and got this response:

"Thanks for the email.
You actual pay a contribution towards the electricity. The bill is produced to the landlord, you just pay a contribution and the landlord pays the difference."

To me, this sounds suspicious. The electricity will be cut off if we don't put money in the meter. How do they know that what their paying will be a 'contribution' and how much of a difference the landlord pays? Is this normal?

The other thing I have tried to look up is the control of the (gas) heating. 9 hours a day seems reasonable, but I'm just wondering what would happen if we went through a particularly cold snap this winter and the house went below acceptable room temperature standards. Does anybody know what our rights would be then? I've tried to find info but couldn't find much, and I can't call the CAB during work hours at the moment.

Thanks again!

Cardew

poppyfreckles wrote: »

Thanks everyone for your replies.

We emailed the agency today and got this response:

"Thanks for the email.
You actual pay a contribution towards the electricity. The bill is produced to the landlord, you just pay a contribution and the landlord pays the difference."

To me, this sounds suspicious. The electricity will be cut off if we don't put money in the meter. How do they know that what their paying will be a 'contribution' and how much of a difference the landlord pays? Is this normal?

The other thing I have tried to look up is the control of the (gas) heating. 9 hours a day seems reasonable, but I'm just wondering what would happen if we went through a particularly cold snap this winter and the house went below acceptable room temperature standards. Does anybody know what our rights would be then? I've tried to find info but couldn't find much, and I can't call the CAB during work hours at the moment.

Thanks again!

Frankly you are dependant on the goodwill of the landlord in these matters.


You can ask - demand even! - to see what he pays for electricity and check that you are being charged the same per kWh(unit) and a proportion of the Daily Standing Charge(DSC)


9 hours heating per day would normally be reasonable, but a '3 hour block' in the evening doesn't sound long enough. It also depends on the temperature of the water in the CH radiators. There are minimum temperature limits laid down for work(16C??) but I doubt it covers your situation.

stator

Get an electric heater, you will need to use it when the main heating isn't enough, it shouldn't work out too bad.

Regarding the meter you should be able to see what the unit rate is on the meter. If it's 10p per kwh then be happy. If it's 50p per kwh then get angry

poppyfreckles

stator wrote: »

Get an electric heater, you will need to use it when the main heating isn't enough, it shouldn't work out too bad.

Regarding the meter you should be able to see what the unit rate is on the meter. If it's 10p per kwh then be happy. If it's 50p per kwh then get angry

We got the keys to the house yesterday. We put £1 into the meter, and the lever thing went up to about 5 units. So I'm thinking it's 20p per unit. We're currently paying 10p with Sainsburys, with a 26p charge per day. Would you happen to know whether it includes the day charge?

My fianc! also spoke with the company who own the flat. They said the heating actually goes on for 4 hours a day in 2 hour stints during the summer, and 6 hours a day in 3 hour stints in winter. So not the 9 hours a day like the agency said. They have provided us with an electric heater. Can we do anything about that, or do you think we'll have to just go with the electric heater?

I was really stressed out about it all yesterday, but I'm just thinking now I'll have to try and accept it, given the rent is 'low'.