Utilities query

riddlesden

I own a flat that is part of a purpose built block of 23 flats that are for the over 55 years of age. The flats don’t have individual meters per flat and the utilities are supplied to each flat via one meter and are charged to the flats owner on the service charge by the management company, on a straight split rather than on usage (This is as per the lease). The utility company charge us at a business tariff rate rather than a residential tariff because because we only have one meter even though they recognise they are supplying residentail flats because they  charge us 5% VAT and don’t charge the climate charge. Is it correct we are charged at a business tariff rate and does this mean we will only get one £200 rebate loan in October 2022 from the government that is available to all households because we only have one meter supplying 23 flats?

QrizB

Welcome to the forum.

riddlesden said:

Is it correct we are charged at a business tariff rate

Yes.

does this mean we will only get one £200 rebate loan in October 2022 from the government that is available to all households because we only have one meter supplying 23 flats?

It might even mean you won't get any rebate at all because you have a business tariff not a domestic one.

Gerry1

What a diabolical set up !  The temptation must be for everyone to turn the wick up 'to get their money's worth'.  Bit late now, but why on earth did you sign up to such a disadvantageous arrangement?  Did your solicitor not warn you?

You should all get together and insist on individual meters and the right to choose your own suppliers.

MWT

Gerry1 said:

What a diabolical set up !  The temptation must be for everyone to turn the wick up 'to get their money's worth'.  Bit late now, but why on earth did you sign up to such a disadvantageous arrangement?  Did your solicitor not warn you?

You should all get together and insist on individual meters and the right to choose your own suppliers.

A bit late now to try to change the arrangement that was baked into the contract at the point of purchase.

It was also quite common for this sort of property to have give the management company  the right of first refusal on re-sales of the property with a set valuation methodology that did not align with market rates.

Sadly quite a few less than ideal aspects to owning and living in these places, but on the flip-side they can be attractive form the perspective of community, supportive services etc. so not all bad.

Gerry1

MWT said:

Gerry1 said:

What a diabolical set up !  The temptation must be for everyone to turn the wick up 'to get their money's worth'.  Bit late now, but why on earth did you sign up to such a disadvantageous arrangement?  Did your solicitor not warn you?

You should all get together and insist on individual meters and the right to choose your own suppliers.

A bit late now to try to change the arrangement that was baked into the contract at the point of purchase.

I'm no legal eagle, but I'd certainly want to challenge that rip-off arrangement.  Might even be an Unfair Contract.  Ofgem says that even if you are a tenant and your landlord is responsible for paying the energy bills, they should not unreasonably stop you from switching.

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/switching-energy-tariff-or-supplier

MWT

This isn't a tenancy though, it is a service contract that was freely entered into at the time, alongside what is typically a leasehold property purchase, it is closer to the district heating schemes, and similarly difficult to get out of and to replace with your own direct supply.

Aspects of these things like the preferential purchase terms do get challenged from time to time, not sure the energy aspect is so easy to change though.