65p a unit electricity for parkhome

xRichardx

Hi all.

We just received our Electricity bill for the 3 months to 4th October and the rate charged is 65p a unit.

We live in a park home on a small site (13 homes) and are billed quarterly by the site owner for electricity used.

I was wondering if this rate is legal.

Thanks in advance 

[Deleted User]

If that is the price that the site owner is paying, then it is legal.

Unless they are a licensed supplier (and they won’t be), they cannot make profit on the resale of electricity.

xRichardx

Thank you.

So unless I am missing something, shouldn't the max charge per unit have been around 28p per unit for that period , moving to around 34p from October ?

Robin9

You are not a domestic user but a tenant of a business user who pays a business tariff who did not get the £150 or £400

stewie_griffin

No because it won’t be a residential tariff, so isn’t protected by the price cap.

ariarnia

xRichardx said:

Thank you.

So unless I am missing something, shouldn't the max charge per unit have been around 28p per unit for that period , moving to around 34p from October ?

residential customers are on a capped rate from october (34p) but businesses rates aren't capped (they're still working out the support for businesses i think but it's less than residential customers).

your site owner is entitled to charge you what they are paying for electric (they're not allowed to sell it at a profit but also don't have to sell it to you at a loss). 

[Deleted User]

xRichardx said:

Thank you.

So unless I am missing something, shouldn't the max charge per unit have been around 28p per unit for that period , moving to around 34p from October ?

As the others have said, no, that was the  domestic price cap which doesn’t cover arrangements like yours.

There is a completely different system with a massively wider range of tariffs in the business supply sector. 65p is a plausible price, I have seen both higher and lower than that.

xRichardx

*sigh* Ok, thanks for the information.

ariarnia

xRichardx said:

*sigh* Ok, thanks for the information.

i think the government were looking at a way to get you the 400 to help with the bill though. i know it won't go as far as those on residential contracts it would be worth you keeping an eye open to make sure you get it (if you have to apply). 

matelodave

You could always ask the site owner for details of his energy contract  and costs so you can check that he's not overcharging you - here are the rules for reselling of electricity resale brochure.PDF (ofgem.gov.uk)

You should also note that he cannot charge you more than 5% VAT even if he has to pay 20%

DullGreyGuy

ariarnia said:
your site owner is entitled to charge you what they are paying for electric (they're not allowed to sell it at a profit but also don't have to sell it to you at a loss). 

Out of curiosity... how is "for a profit" calculated @ariarnia?

If I am charged 65p/kwh and bill my tenants 65p/kwh then in reality I have made a loss as I've had to pay the admin team to draw up the bills, send them round to everyone, chase the tardy payers, potentially had to pay the bill before I myself am reimbursed so have effectively provided credit etc. 

Is it a strict having to prove the cost of these things or is there an accepted allowable margin? Is it expected these secondary costs are covered by some other form of management fee/rent and the electricity is a straight pass through at, on paper, a loss?