Utility charges at caravan parks

Just received an email from the holiday park regarding an increase in electricity charges. The park states they have been bearing the increases for the past 18 months but have now made a decision to backdate an increase to January 2023 from £0.1592 per kWh to £0.3034 and from April 2023 to £0.3648 per kWh , I understand that increases will happen but backdating is surely morally wrong, is it legal?

Comments

  • Sounds reasonable, what they can't do is make a profit on energy but from your info above it sounds like they have been taking a loss but cannot do this anymore.

    It would only be illegal if they were making a profit from the energy supplied and bear in mind that will be a business contract which you could request information on to double check.
  • Just be thankful they have been bearing the increase for so long. Those prices look reasonable for commercial rates which is what the park will be paying. Ist unfortunate that they did not inform you earlier but it is not an immoral action. 
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    edited 12 September 2023 at 8:39AM
    troosers said:
    Just received an email from the holiday park regarding an increase in electricity charges. The park states they have been bearing the increases for the past 18 months but have now made a decision to backdate an increase to January 2023 from £0.1592 per kWh to £0.3034 and from April 2023 to £0.3648 per kWh , I understand that increases will happen but backdating is surely morally wrong, is it legal?
    If you were a standard domestic energy customer, then the supplier would have 12 months to amend the charges on your bill before the BackBilling rules kicked in: that is, taking today’s date, the supplier could only correct bills back to the 12 Sep 2022. I am not sure morality comes into it. Would it be morally right for your Park owner not to repay you if he/she had mistakenly overcharged you? You could ask for time to pay.

  • Scot_39
    Scot_39 Posts: 1,822 Forumite
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    edited 12 September 2023 at 11:28AM
    Depends on the terms of the contract you agreed to when purchasing the holiday home.

    Which many might expect to follow domestic - but there's a reasonable chance its a commercial (business) rate for the site.

    Ofgem capped domestic policy deals only apply to those with a direct personalky metered contract with a regulated supplier..


    Commercial supply contracts  - any large holiday park could be on - can be full of caveats - and so called pass through costs - think more fixed term than fixed costs if fixed at all (some were simply weekly spot prices for instance)  -  if the energy prices change.

    And even social landlords are now responding to such costs on their community heat schemes.  So whilst our bills have fallen over summer,  their tennants face higher charges for the next 12m period (some more than trebled) cf year before.

    And getting back to comparisons with domestic rates.

    The average rate under the govt epg that ran from Oct to Jun, was around 33p/kWh for DD - prepay varied, standard credit several % higher.

    But for normal domestic supply - and only normal domestic supply - those rates were after being essentially discounted by EPG - c17.9p, c33p and c17p averages for electric per kWh.  

    Suggesting true wholesale market linked rates without EPG discount of c51p Oct, c66p Jan and c50p Apr.


    Others on uncapped community suplply rates were paying far more at some points in last 12m. 

    Even domestic customers on octopus agile capped by them at a £1/kWh and epg discounted by 17.9p were paying 82.1p in some time slots in last Dec price spike.

    So I would if anything consider yourself lucky they are asking for such low rates.
  • troosers said:
    Just received an email from the holiday park regarding an increase in electricity charges. The park states they have been bearing the increases for the past 18 months but have now made a decision to backdate an increase to January 2023 from £0.1592 per kWh to £0.3034 and from April 2023 to £0.3648 per kWh , I understand that increases will happen but backdating is surely morally wrong, is it legal?
    I've just asked a similar question - as I too received the same, with the same figures - looks  like we could be at the same caravan park - will try to PM you   -  I have only just posted as received my backdated bill. 

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