43.56p per kWh electricity

james1982a

I'm not sure if this is the right section but I desperately need some help!

I live on a mobile home park and pay water and electricity to the site owner. 

The site was brought by a convicted fraudster after the original owner unfortunately passed away. 

The new owner has been causing myself and my neighbours no end of problems. Ultimately he wants to force everyone out of their homes.

His latest scheme is increasing the electricity rate from 14p per kWh to 43.56p per kWh. This seems to be well above the 28p price cap.

Myself and my neighbours all have separate metres and we pay the site owner who Ultimately pays whoever the supplier is.

We had a letter dated 9th March 22 saying that from 18th December 2021 to 9th March 2022 the rate was increasing to 31p per kWh. The bill for this arrived 2 days later (which I have paid)

In the same letter he states that from 10th March 2022 it will be charged at 36.3p per kWh.

Then on the 15th March 2022 myself and my neighbours received a letter saying they forgot to state it was plus  VAT and will now be charged at 43.56p per kWh. 

Again, this doesn't seem right as the VAT on electricity should be 5%. This is nearly a tripling of our original 15p rate, it's well above the average 28p price cap and it was given at very short notice. 

Could the electricity company really be charging him that much per unit?

If not what can I do about it? Is there anyone who can help us with this? Bearing in mind we have no money. 

This seems to be his latest scheme in trying to make us all homeless. He's been conducting surveys on our properties and saying they need up to £40,000 worth of repairs carried out on them.

A neighbour died not so long ago and passed his property onto a friend, who then sold it for £60,000. The site owner somehow managed to block the sale and has brought the property for £18,000.

He's forced 4 other neighbours out of their homes, again for well under market value and demolished them in situ (when it would have been much better to just remove them intact and remove them on the back of a lorry.

I'm next up for a survey which I don't believe he can legally carry out. But I fear I could soon be made homeless and living in a cardboard box. There are 7000 people on the council house waiting list for 600 homes in my area and as a single male I don't think I have any chance. I can't even join the waiting list as I'm deemed a home owner, even though in the current situation we are all in, our homes are next to worthless.

I've lived here for 40 years and there have never had any problems before. This man is making our lives hell.

FeaturelessVoid

The price cap applies to energy suppliers, not third parties who you have an arrangement with.

If you think he is acting unlawfully and you stand to lose tens of thousands, speak to a solicitor, not an internet forum.

Aylesbury_Duck

It sounds like electricity charges are the least of your worries.  I'm afraid you need proper legal help, which I know may be unaffordable for you individually, but perhaps a group of you might club together to fund some initial legal advice about your rights.

Back to the electricity prices, as I understand it, the price cap only applies to domestic customers.  In your arrangement it sounds like the park owner is a business customer of the energy company, so they can charge above the cap, and he's permitted to pass that price on with a reasonable margin.

Eydon

The price cap for gas and electricity applies to domestic supplies only.

The caravan park will be operating as a business and so will be being charged business prices, for which there is no cap. To give an indication, I run a Scout Group which is treated as a business by our supplier and we have been paying 31p + vat per kwh since Nov, so the rates you are being quoted don't seem that way off.

james1982a

I've done a bit more research into this. It's not clear about the price cap, but he isn't allowed to re-sell it at a profit. https://www.ofgem.gov.uk/sites/default/files/docs/2005/10/11782-resaleupdateoct05_3.pdf to residential customers.

*edit*

also noted on there is that he can't charge more than the 5% VAT, and he's trying to charge us at 20% 

Flight3287462

James if I were you I would start making plans to move if you can.  This sounds like an opening salvo, which I am sure you would have a good chance of winning, but what comes next? (I am assuming you are a tenant and not an owner)
.
Good luck

born_again

There was a thread on the same subject a while ago.

Think the jist was as a business they get charged more. & are just passing on their increased cost. If you do not pay a standing charge as well then that maywell not be far off market rate.

Remember we all face large price hikes of electric & gas from 1st April.

Sandtree

james1982a said:

also noted on there is that he can't charge more than the 5% VAT, and he's trying to charge us at 20% 

Take this with a pinch of salt but... 

First of all, the business isn't an energy company and so they are buying the electricity as a company and allowing you to use it in your caravan and as such it isn't a domestic supply so the energy cap doesn't apply to them.

VAT is a more complex subject... I buy a train ticket for £100 which is VAT exempt but if I charge my client I have to charge them £100 + VAT = £120 because I'm not selling them a train ticket but selling them my having bought a train ticket for them. I've never looked at redistributing the cost of electricity but its not a great leap to assume its similar.

At the end of the day if its 5% or 20% they aren't profiting from the VAT as it goes to HMRC to fund the NHS, house refugees or maintain MPs duck houses

cx6

The above is correct - they are charging 20% vat on their services correctly as they are presumably a vat registered company 

james1982a

Flight3287462 said:

James if I were you I would start making plans to move if you can.  This sounds like an opening salvo, which I am sure you would have a good chance of winning, but what comes next? (I am assuming you are a tenant and not an owner)
.
Good luck

I own the property but rent the land. I would move if I could but right now with him behaving how he is, my property is worthless and I can't afford to rent outright.

WhoopsIDidItAgainITrolledWithYourHeart

james1982a said:

Flight3287462 said:

James if I were you I would start making plans to move if you can.  This sounds like an opening salvo, which I am sure you would have a good chance of winning, but what comes next? (I am assuming you are a tenant and not an owner)
.
Good luck

I own the property but rent the land. I would move if I could but right now with him behaving how he is, my property is worthless and I can't afford to rent outright.

Your rental agreement is irrelevant unless you can source your energy from someone else.