3 houses on bore hole water pumped up by electricity..classed as business use?

lessablue

An unusual scenario but I hope someone on here has come across it. We are a group of three out of the way houses supplied with water from a borehole which is on the premises of one of the houses and 'maintained by us. We club together to pay the electric bill etc otherwise no money is exchanged . However southern electric insist this is a business and charge us business rates..which are about to become horrendous for us.A long shot but I wonder if anyone has any experience or advice? 

molerat

Communal use is classed a business use, the same for lighting etc in the communal areas of flats.

ProDave

If the pump is close to one of the houses, ditch it's own independant supply, and feed it from the closest house.  Install a meter of your own so you know it's use, and collectively pay that house owner what it uses.  You cannot re sell electricity at a profit, so it is important it is charged at exactly the kWh rate that house owner pays and a meter reading taken at least every time that house owners rate changes.

Grumpy_chap

lessablue said:

An unusual scenario but I hope someone on here has come across it. We are a group of three out of the way houses supplied with water from a borehole which is on the premises of one of the houses and 'maintained by us. We club together to pay the electric bill etc otherwise no money is exchanged . However southern electric insist this is a business and charge us business rates..which are about to become horrendous for us.A long shot but I wonder if anyone has any experience or advice? 

As others have said, correct that this is business use.

For many years, business tariffs have been more competitive than domestic.  It is only the market distortion of the domestic price cap that changes that dynamic now.