Landlord refusing to pass on government's energy rebate to "bills included" tenants.

pthompson

[I'm sorry if this has been asked before -- I couldn't find an answer in the forum]

A friend has energy bills included in her rent, yet (as I understand it) the landlord is nevertheless required to pass on the government's rebate to the tenants.    Unfortunately the landlord is refusing to pass it on "due to his energy prices having increased".   

Here is information leading me to understand that the landlord must pass it on anyway, and this has been provided to the landlord: 

  https://www.gov.uk/government/news/400-energy-bills-discount-to-support-households-this-winter#:~:text=tenants renting properties with domestic electricity contracts from landlords where fixed energy costs are included in their rental charges


Can anyone suggest a way forward on this please?   Of course the tenants are concerned that the rent might be increased reciprocally if they insist on this.

Thank-you.

pochase

The landlord is just not allowed to make a profit reselling energy.

It sounds like the landlord is on a commercial tariff, and those are not covered by the EPG. The landlord is not refusing to forward the EPG, he does not get it.

Was there an increase of the rent to accommodate for the higher energy cost? Otherwise I don't understand why your friend would expect a reduction.

Chrysalis

I will admit its a bit confusing, it says landlords who resell the energy, it could mean if they actually charging for energy use rather than a "all you can eat" inclusive on a fixed rent deal.  Because on inclusive energy on a fixed monthly rent if they passed it on it would mean rent goes down whilst at the same time the LL is paying more for the energy.

Hopefully someone who knows how it should be working replies to help you.

Martin_the_Unjust

I’m not convinced that, in the above situation, the landlord is reselling the energy and, as has been said, if the landlord does pass the rebate on they will, in effect be hit twice.

I think your friend OP is trying it on.

macman

If the LL is paying a commercial tarrif and offering an 'all you can eat' rental arrangement, then the odds are that they're heavily subsidising the energy bills, unless on a long term fix.

Spoonie_Turtle

Your friend should apply for the EBSS Alternative Funding when the applications open at the end of February.  https://www.gov.uk/get-help-energy-bills/offgrid-park-mobile-care-home

Helenpet64

I am a landlord and until recently rented out rooms in an HMO, where the rent was all inclusive of bills. When my fixed energy tariff ended in October 21, the monthly bills went up as I moved on to my suppliers variable rates. They went up again in Spring 22, and ultimately resulted in a doubling of my bills each month. I did not pass this increase on to the tenants in increased rents. So when the government provided me with £400 help towards those bills, I saw no reason to pass that back to the tenants. Their costs have not gone up….mine have. If however, I had been metering them individually, and charging them on actual usage per month, then yes, it would be fair to pass the discount on, split percentage wise on usage. Most landlords don’t charge usage individually, and are taking the hit for the increased prices. 

Raxiel

Sounds like the landlord is passing it on, by not increasing the rent to match the cost increase.