Blank Wite Cardboard PrePay Electric Cards - whats the re-sale rules governing them?

RichmondMann

Hi there, I was wondering if anyone knows how the pre-paid electric cards work? The blank white cardboard ones, with each card costing £5.

Currently I buy these cards from another tenant in the building (6 flats in total, terraced house), who then buys them direct from the landlord. Atleast that is what the tenant says who I buy them from.

EDIT: to be clear, I can only buy cards from the tenant, as the landlord has it setup that way, and does not sell the cards directly to the tenants. So the tenant in question is acting as an agent for the landlord when it comes to the sale of these cards.

Ive read the "What your landlord can charge you for energy" article on the Citizens Advice Bureau website (sorry no links for new users). That article seems to state that a landlord cannot make profit from a tenants energy bills. Is this still the case? And why would the tenant in question be paying upfront for cards they get direct from the landlord? If that tenant is making profit from these cards, then that must be illegal?

Im about to confront him about this as I owe £20 for 4 cards, and was going to pay on payday in 2 weeks, but now he says it comes out of his pocket as he pays landlord upfront for cards for all 6 flats. And he's not going to pay upfront for the other 5 tenants, unless he is getting a cut surely.

Will also to ask him for a breakdown in charges that are included within each £5 card, and how many units are included. Any advice would be greatly appreciated, before I go talk to him and find out how it all works, and if I am being ripped off!

spiro

What you pay is not enough without telling us how many kWhs you get for the £5.

Biscuit_Tin

RichmondMann wrote: »

Hi there, I was wondering if anyone knows how the pre-paid electric cards work? The blank white cardboard ones, with each card costing £5.

Currently I buy these cards from another tenant in the building (6 flats in total, terraced house), who then buys them direct from the landlord. Atleast that is what the tenant says who I buy them from.

Ive read the "What your landlord can charge you for energy" article on the Citizens Advice Bureau website (sorry no links for new users). That article seems to state that a landlord cannot make profit from a tenants energy bills. Is this still the case? And why would the tenant in question be paying upfront for cards they get direct from the landlord? If that tenant is making profit from these cards, then that must be illegal?

Im about to confront him about this as I owe £20 for 4 cards, and was going to pay on payday in 2 weeks, but now he says it comes out of his pocket as he pays landlord upfront for cards for all 6 flats. And he's not going to pay upfront for the other 5 tenants, unless he is getting a cut surely.

Will also to ask him for a breakdown in charges that are included within each £5 card, and how many units are included. Any advice would be greatly appreciated, before I go talk to him and find out how it all works, and if I am being ripped off!

This sounds like some private agreement where you are required to buy your electricity from your landlord. (e.g. in bedsits)

So the obvious question is why don't you buy it directly from the landlord, rather than though this other tenant who you obviously do not trust??? :huh:

What's the betting if you ask the tenant, he'll simply say he buys the cards from the landlord for a fiver each? :cool:

RichmondMann

Hi spiro, cheers for replying.

TBH, that's part of my point above, I dont exactly know how much KWhs I get per £5 card, so I was hoping to do some research before I go chat to the tenant in question, and ask about rates of electricity that is included on the cards.

Basically I want to know what rights surround these cards for private tenants and what profits can/cannot be made via the sale/resale of these cards.

RichmondMann

Hi Biscuit Tin. I cannot choose who I buy it from, the tenant in question is the only place I can purchase these cards. It seems to be an arrangement between the tenant and the landlord.

Biscuit_Tin

RichmondMann wrote: »

Hi Biscuit Tin. I cannot choose who I buy it from, the tenant in question is the only place I can purchase these cards. It seems to be an arrangement between the tenant and the landlord.

Have you spoken to the landlord about this?

What if the tenant moves out, is evicted, etc???

Biscuit_Tin

RichmondMann wrote: »

...
Basically I want to know what rights surround these cards for private tenants and what profits can/cannot be made via the sale/resale of these cards.

You already know the situation - you spelt it out in your OP, and you say you plan to confront the tenant about it ....:cool:

RichmondMann

Biscuit_Tin wrote: »

Have you spoken to the landlord about this?

What if the tenant moves out, is evicted, etc???

The landlord was the person who advised me to buy my electric cards from the tenant in question. As mentioned above, it appears to be an arrangement they have together. As far as him moving out, then the landlord would have to find another way for all tenants to get their electric cards, or we would all be without power, and heat as heating is electric in all flats. I dont see that happening. Well, fingers crossed

Biscuit_Tin wrote: »

You already know the situation - you spelt it out in your OP, and you say you plan to confront the tenant about it ....:cool:

I really dont know the situation, hence why Im asking here. I still want to know what rights are attached to the reselling of those electric cards. Can a profit be made, etc

Andy_WSM

It's all here in Black & White: https://www.ofgem.gov.uk/sites/default/files/docs/2005/10/11782-resaleupdateoct05_3.pdf

Non-negotaible, them's the rules as they say.

He can charge only the costs he pays, he cannot make a profit and also of note is that he cannot levy a charge for administering the scheme or for the equipment required to run the scheme - these must be billed either as a service charge or as part of the rent.

dogshome

Only a guess, but I think the reason that another tenant selling the meter top-up cards, is that with 6 flats the landlord does not want the hassle of people contacting them at all hours to buy a card
Chances are that the tenant selling the cards gets a profit on the cards for their trouble.

Thanks to Andy_WSM for putting up the Ofgem site, but in the end it comes down to just who a tenant who's being overcharged by a Landlords meter, should complain to?

I'm afraid the answer is NO ONE - There is no agency with the responsibility of policing private meters, and the only Ofgem notice I've seen advises tenants to go to the Small Claims Court.
To do this a tenant will have to have copies of the Landlords billing from the original supplier ! ! !

matelodave

The first question should be is how many kwh you get from your £5 card.

When you know that you will be able to see if you are being overcharged and can then challenge it.