Landlord charging for utilities

Kormoran

We rent a house on a farm and the utilities are all provided by the landlord, heating and hot water from a huge central biomass boiler and electricity from solar panels and bought in from their chosen supplier,( probably at a commercial rate) These supply several houses and small businesses. We are charged at the full rate the electricity supplier charges the landlord, but about half of the supply is free via the solar panels. The heating/hot water is expensive and not individually metered.
Is this correct and please can anyone direct me to information regarding rules/laws for landlords charging for utilities they generate themselves (ie not re-selling) ?
Thanks!

G_M

They can charge whatever the tenancy agreement you agreed to says they can charge.

Kormoran

I know this would usually be the case, but our tenancy agreement was signed in 2004, landlord started to supply utilities in 2015, so no mention of costs in the tenancy agreement, and we haven't signed any other agreements.

sal_III

So what are you hoping to achieve? Find a way to pay your LL less?

Most likely outcome is that he will kick you out and include the utilities in the rent for the next tenants.

tacpot12

You seem to be arguing that you should get a discount on your electricity because the landlord has invested in solar energy. I think you have to accept that he should benefit from his investment, and you should not because you haven't taken any risk with your capital.

The situation with hotwater/heating is similar, in that the landlord has invested in the infrastructure to provide the service, and deserves a return on the capital that he has employed (it could be invested elsewhere earning 4% pa). People who live away from the mains gas supply are used to having expensive heating costs, either having to have LPG or fuel oil delivered in bulk to their property. You don't have to deal with any of the problems associated with this.

That said, you should have a contract that covers the provision of heating/hot water. Having one should work to both parties advantage, but it is unlikely to reduce the cost. Potentially the best thing you can do, is explain to the landlord that you are unhappy with the cost, and will consider leaving the property unless you are convinced that the landlord is not making an outrageous profit from providing the service. The landlord needs to cover all his costs, plus be able to save money to replace the heating plant as it ages, and take a small (4-5%) profit. Why don't you offer to work with him to review the profit model for the heating scheme and draft a contract, so this can be shared with all the users of the scheme. I think co-operation is the way forward here. If they don't want to cooperate, your only option is to accept the current situation or leave. I'm not aware you have any rights in this situation.

G_M

Kormoran wrote: »

I know this would usually be the case, but our tenancy agreement was signed in 2004, landlord started to supply utilities in 2015, so no mention of costs in the tenancy agreement, and we haven't signed any other agreements.

So what exactly does the original tenancy agreement say regarding utilities?


Mind you, if you have been paying something other than what the TA requires for the last 3 years there is an implied (legal) agreement that that is what you must pay.


Else why would you have been paying it for 3 years?

Kormoran

The original tenancy agreement states we should not change our utilities suppliers without the written permission of the landlord.
When the change to landlord supply was implemented we were told our costs were guaranteed to be less than before. Electricity was cheaper initially,then was increased- heating/hot water much higher than previous oil costs.
We have been paying because we were promised a review of the charges after the system had been running for long enough for landlord to assess all the costs involved.

All I am asking is whether there is any legislation covering this situation which I can refer to?