Best Energy Deals for "Affordable Housing" Tenants

Fozzie_Bear

I am a trustee for a village hall which is a registered charity. Attached the hall and owned by the charity are two cottages which we rent out at "affordable" rents which take into consideration noise nuisance from the hall and also a desire as a charity to support local residents who could not afford normal "market" rates.
However we are now refurbishing both properties to improve thermal insulation, provide gas central heating (replacing existing night storage heaters) and bring them up to current standards.

One property has a credit style meter whilst the other has a PAYG key meter which is obviously more expensive in terms of tariff for the tenant.

We would like to consider replacing the PAYG meter to allow future tenants to switch if necessary.
Does anyone have any experience with picking an energy company with tariffs for social type housing or have any suggestions for the best options for this situation which would give existing and new tenants the best energy prices?

CashStrapped

If the property is to be let out, it is the occupiers responsibility to set up the bills and tariff when they move in to the property.

Nothing can be set-up in lou of someone moving in. The bills and account have to be in that individual person(s) name.

However, if you are letting the property inclusive of bills, then you need to ensure you are just on the cheapest possible tariff for specific usage figures for your area. You then need to monitor the meter and tariff yourself/co. If you go this route I assume it would still be classed as a domestic supply but in the charity name? Or the individual managing the property.

To compare tariffs for your area, I would use national averages for low users (if a small property). For example, for a small well insulated property, you may have annual figures of around 3000KWH electric and 8500KWh gas. (Low use national averages)

The one thing you can do is get that prepay meter swapped out as quick as possible. I would just put a standard meter in for now.

When version 2 of the smart meters comes out and the property is next empty, you may want to consider swapping to those. This will reduce the risk of any tenant leaving without paying. I would not bother getting the current version of the smart meter (version 1) as it is not compatible with all suppliers.

Also ensure that you have a water tight tenancy agreement, take pictures of any meter readings before tenants move in and after they move out. That is very important.

Fozzie_Bear

Thanks for the reply CashStrapped.

We let out the properties exclusive of energy. However whilst national grid have installed the gas supplies we have got to approach a gas supplier to install the meters. Presumably the tenants will then be locked in for a period of time until the energy company recoup their expenses??
I was looking for an energy supplier who perhaps favours affordable housing to get them to install the meters and take over the electricity too.
We intend to get the Prepay meter taken out and hopefully they will take the opportunity to fit a smart meter. Similarly I am hoping the gas suppliers will fit smart meters as they are new installs.

I initially looked at Sparks energy but they don't appear to have very good reviews and come down the list of cheaper providers.
Thanks again for your suggestions.

Fozzie

CashStrapped

Nope - you are under no obligation to stick with the supplier who installs a meter. Get the meter fitted. Ask to be put on to either their standard tariff or their cheapest one without a exit penalty.

Then compare and switch. I would only bother switching if you are the property is going to be empty for a while before new tenants move in. If it due to be empty for 6 months or more, with little use in that time, you may want to look for a tariff with no standing charge.

As per my advice on smart meters. Currently only version 1 is available which is not compatible with all suppliers, so it is best avoided for now.

Wait till version 2 comes out (next year sometime I think) before you consider them.

So for now just ask for standard meters to be fitted.

So the things you need to do are.

1) get the gas meter fitted and create an account with the supplier who fitted it.
2) get the electric prepay meter changed to a standard credit meter

New Tenants move in.

1) keep a record of meter readings when they move in and close the energy accounts in your /the charity name using those readings.
2) Leave a note for the tenant directing them to the existing supplier, asking them to set-up an account.
3) You could even leave a note suggesting they do a comparison (based on typical/average figures) and to switch supplier, but only once they have set up accounts with the existing supplier.

If you switch onto a cheap tariff now, any future tenant will not be able to continue on that tariff. They will always have to create their own account from scratch picking only the tariffs available to them at that time.

As a final note. Even though I appreciate it is a charity with a venerable cause/aim in letting the properties at affordable rates, do not skimp on background checks, references and tenancy agreements/contracts. If this is the first time the charity has acted as a landlord, you may want a local agent to set everything up for you. This could save you a fortune in the long run.

Fozzie_Bear

Thanks again for quick reply and very useful information. Its much appreciated. We do however use a letting agent already on the basis we do not have time to deal directly with tenants and don't have the expertise and legal experience re letting legislation.
Fozzie