No Energy Price cap for me

Steve_SS

I am a tenant in a flat with a smart, prepayment electric meter.

My tariff has recently been increased to 55p/kWh. This is well above the Energy Price cap, recently set for domestic users at 30p/kWh.

When I queried this, they said that the main meter for the building has a commercial supply. (The building was formerly an office block which was converted to flats.) And therefore is not bound by the Energy Price cap, which is only applicable to domestic supplies. I have asked them to provide an explanation of how this tariff is calculated, but have not had any reply so far.

As a pensioner, on a fixed income, it will be difficult to pay almost double the domestic price cap. How can they justify this?
Are domestic dwellings even allowed to have commercial energy supplies?

CSI_Yorkshire

Steve_SS said:

I am a tenant in a flat with a smart, prepayment electric meter.

When I queried this, they said that the main meter for the building has a commercial supply. 

That doesn't make sense - or are you saying that you pay your electricity to the building owner, not to a 'normal' supplier?

Apart from that - yes, you can be getting supplied from a commercial tariff, and yes, it is not bound by the domestic price cap.

Steve_SS

I pay a metering company who I assume, pass the payment on to the landlord.

DullGreyGuy

Steve_SS said:

Are domestic dwellings even allowed to have commercial energy supplies?

You'd question why its been done this way but yes, the freeholder, which will be a commercial entity, can have a commercial supply and then recharge it to the tenants in the units (domestic or not). They arent allowed to make a profit on the recharging though (is my understanding).

Its certainly unusual for electricity, much more common with gas where the building/development has a big boiler providing everyone's hot water/heating needs

CSI_Yorkshire

Steve_SS said:

I pay a metering company who I assume, pass the payment on to the landlord.

Then unfortunately you are stuck with whatever tariff the landlord chooses for the building, which will usually be commercial.

As DGG says, they can't sell the energy on at a profit, but can cover 'reasonable costs' (like the metering company).

You did well to avoid the period last year where commercial tariffs were over 75p/kWh

brook_heather

Steve_SS said:

Are domestic dwellings even allowed to have commercial energy supplies?

Yes my parents have been on commercial electricity and gas contracts with British Gas for the past 30 years since they bought the house as they were able to get cheaper fixes - as they have now come to the end of a 3 year fix they have re-registered the meters for residential use to benefit from the lower capped residential rates.