Apportioning a Commercial Utility Contract.

HappyScotsman

My late mother was fortunate enough to have financial interests in renting out office buildings. The utilities were her liability and charged out to tenants. Having spoken to one of the suppliers, they didn't see the commercial contracts as terminating early as I was carrying on where she had notionally left off. All they wanted was updated banking details. I was surprised, but happy and if you've ever had the pleasure of dealing with brokers for negotiating energy contracts, you'll know exactly what I mean.

Now the utilities are paid for via monthly fixed direct debits. I'm pretty sure if I review usage vs spend, it will be in the "I owe them" part of the annual cycle. Question is, do I just adjust the estate by the proportion of the billing month or calculate actual cost of utility use from the contract start date to date of death via meter readings and compare that figure with the total paid out via direct debit to establish what the notional liability may have been?

Marcon

HappyScotsman said:

My late mother was fortunate enough to have financial interests in renting out office buildings. The utilities were her liability and charged out to tenants. Having spoken to one of the suppliers, they didn't see the commercial contracts as terminating early as I was carrying on where she had notionally left off. All they wanted was updated banking details. I was surprised, but happy and if you've ever had the pleasure of dealing with brokers for negotiating energy contracts, you'll know exactly what I mean.

Now the utilities are paid for via monthly fixed direct debits. I'm pretty sure if I review usage vs spend, it will be in the "I owe them" part of the annual cycle. Question is, do I just adjust the estate by the proportion of the billing month or calculate actual cost of utility use from the contract start date to date of death via meter readings and compare that figure with the total paid out via direct debit to establish what the notional liability may have been?

You don't need to work from the contract start date - just go back to the last date when things were 'all square' (or roughly so) and calculate from there to date of death.