Standing charge on a multi let commercial unit.

DMRose

Hi everyone,

I am hoping someone can help with my query/issue. Sorry this is longwinded.

I rent a commercial unit in Stoke On Trent, the landlord is not the best. I have to wait about a year for an electricity bill. He brought the building about 6 months after taking out my lease with the old owners. He issued me with a rather large electricity bill after 12 months of ownership of which I wasnt impressed as the old bill from the previous landlord was fine. I had been asking for a bill since the first month. 
After I questioned it he just laughed and said yeah and the prices havent even gone up yet.
I requested the supplier bill which I am legally allowed to do and that took 6 months to appear after many arguments.
I went through the bill etc even had my dad second check it and it seemed to be right. I clarified this with my landlord and started to pay the outstanding balance. I have made 4 payments over 4 months and have 2 more payments to catch up. Then I owe what I have accumulated sine then.

I spoke to someone that came to see me as they are interested in renting one of the other units and was asking what the landlord was like? I spoke about the electric bill and they mention the standing charge of which I said is very high. They said its wrong. I need clarification before I tackle the landlord.

Ok so the as I say I have the original bills to the landlord. There one registered meter number in the invoices only. The 9 sub meters are right next to the main meter with no licence numbers on them.

The issue is that the standing charge on the invoice is £1.55 per day the the main meter.
We as in the nine units are being charged £1.55 per day each ( Per Unit ) which means her is profiting £12.40 per day? Is this correct or should it be £1.55 divided by 9?

So the landlord is charging me £48.05 Standing charge per month and I use about 60kw per month as I sit in the dark most of the time due to the charges.

I have contacted CAB, OFGEM, ombudsman and the City Council of which none where helpful. 

Please help as business is tough enough without being over charged.

Hope that all makes sense.

QrizB

Welcome to the forum.

Yes, on the face of it the standing charge should be divided between the sub-metered accounts.

It is illegal for a landlord to make a profit on re-sold electricity.

https://www.ofgem.gov.uk/publications/resale-gas-and-electricity-guidance-resellers

DMRose

Thank you for your reply and yes I thought as much.

I can’t find anywhere in writing that explains that though to take to my landlord. 

Any suggestions on how to approach this with him an he is very hostile. 

I’ve got to explain to him once again he’s wrong and he owes me money now. 

I understand it’s illegal as I brought that up to him before. I think it scared him the fact I challenged him and had the knowledge and understanding.
My mum described him as a small fry criminal and a con merchant which made me laugh. 

He’s pulled the wool over some the tenets which has cost them dearly unfortunately.

he’s cost me a lot over the past few with loss of earnings etc. he left me with no water for 6 months again illegall I ended up reporting him to the council. I shouldn’t be like that. 

lohr500

Not sure if I am reading the document in the link that QrizB provided correctly, but on page 2 it says :

Who does it not apply to? The maximum resale price rule does not apply to gas or electricity resold for use at industrial and commercial premises, e.g. shops and offices.

If this is the case for commercial tenants then I guess the landlord could argue that the standing charge can be whatever he likes. Playing devil's advocate, he could argue that it needs to be higher than he is paying the utility company as he has to maintain the infrastructure to the units downstream of the main meter.  

Also, if it is the case that he can charge what he likes for the electricity and you rock the boat on the SC, then he could bump up your unit price. 

Is there anything in your tenancy agreement covering utility costs?