Landlord Sub Meter Prepay

Sonic1969

Hi Advice needed. I live in a rented park home ( its not as pleasant as a park home but that's what ill call it) There are 30 on site. One metered supply to the main meter and then each unit has a Metro Prepay submeter that we have to go online to buy 'vouchers' to add electricity. My understanding is the landlord sets the rate with Metro. I've discovered that i am currently paying 45p/kwh 3p/day standing charge (that's because the single standing charge to get the power to the site is shared amongst each unit.) On top of that i find I also have to pay 15% admin fee to Metro. So if i add £100 every 30 days im actually only getting £84.10 worth of electricity.
I have no visibility of the energy supplier; what the charges are to the landlord. Presumably its a business rate too. It feels slightly unfair that domestic prepay meters directly supplied (Not sub metered) are now protected so that consumers don't pay more than the normal direct debit rate. Submeter tenants have little protection. The park home site owner uses a manager on site  who supposedly manages the site - in reality he does nothing and isn't too bright. He presumably doesn't see the energy bills either and if i approached him wouldn't know what i was talking about. Added to this the site manager runs a business side line on the site which consumes electricity and I'm not convinced that the residents aren't subsidising that. My understanding of Metro prepay sub metering is that the landlord sets the rate (supposedly according to their charges) the tenants buy the tokens then Metro give the money generated by the tenants to the landlord on a monthly basis. I think the difference in the value on the main meter and the sub meter is then paid by the landlord but i have a feeling he's adding a bit on to the tenants so his costs are less. The park owner is not contactable or approachable. I don't know who i can go to to find out if the landlord is overcharging me. I don't know what organisation i can raise the issue of submetering to. The homes are poorly maintained, have no heating (except portable heaters that tenants provide) Any support/advice greatly received.

Netexporter

I don't envy you not having full control of your energy supply. Assuming that there is no "funny business" going on, you need to bear in mind that commercial supplies are not capped like domestic supplies, so businesses are paying far more than private consumers. On the other hand, only paying a share of the daily charge is to your advantage. Most people pay around 50p a day.

Gerry1

I suspect the OP's deal is about as good as it gets for a park home; it's always a poor deal because of 20% VAT etc.

Bottled gas might work out cheaper for heating.

Scot_39

Without EPG last winter - people would have been paying over 60p / kWh.

And unlike Ofgem caps - commercial contract rates - had no such protection - and can like domestic fixes be for a fixed term.

So the fact that the Ofgem cap is now lower - potentially isn't really immediately relevant (just as it wouldn't be if on a domestic fix).

And as others point out the savings on standing charges are non trivial - Ofgem SVT standing charge averages are around 53p DD/58p PP - so at least that shaves off a decent portion.

The TDCV for electric heating is dropping to 3900 kWh pa - just over 10 per day - so your getting on for c5p/kWh saving at that usage - on the 45p price - more if use less. 

But yes even then c40p still a lot more than the current 29.xp ave SVT for DD payment.

Don't remember reading of future actions from posts here - but I would only be skimming them at best - as not in your situation. The govt extended last winters EBSS equivalent to those in similar conditions - via the EBSS Alternative Funding - but then people had to claim - unlike those on normal direct domestic contracts - applications are now closed - so I hope you knew about it and claimed.

matelodave

Gerry1 said:

I suspect the OP's deal is about as good as it gets for a park home; it's always a poor deal because of 20% VAT etc.

Bottled gas might work out cheaper for heating.

I'd doubt it because most park homes either have a centralised gas tank or insist that they supply the gas by restricting access to any other suppliers. 

As an aside, the OP suggest that the units dont have any heating except that provided by portable heaters and the consequences of using LPG cabinet heaters are vast amounts of condensation and lots of moulkd.

Scot_39

Gerry1 said:

I suspect the OP's deal is about as good as it gets for a park home; it's always a poor deal because of 20% VAT etc.

Bottled gas might work out cheaper for heating.

Whilst I can see the argument for applying 20% VAT on say a holiday park home - it does seem a little unfair to allow it on park homes - which are after all essentially permanent / primary residences.

Does the same 20% apply to those on say a commercial or social landlord community heat scheme ?

Sonic1969

Thanks everyone for your input. Its only a recent move for me to this accommodation so have always been used to my own supply previously. I guess will just have to see what the winter brings. Other residents comments on paying up to £80/week last year so not looking forward to it. I do think that the whole commercial supply to domestic residential end users needs looking at as the land lord is win win we pay his bills and he can offset energy against tax! 

[Deleted User]

we pay his bills and he can offset energy against tax! 

Is that what you know, or what you think? 

All the landlord should be doing is billing you for what he is paying to his supplier for the energy that is supplied. Your contract/ agreement may contain an additional cost for metering and the raising of bills.

Ofgem’s advice for Park Home residents is here:

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/advice-park-home-residents#:~:text=The%20Maximum%20Resale%20Price%20(MRP)%20direction&text=They%20must%20only%20recoup%20the,it%20out%20to%20the%20residents.

Sonic1969

[Deleted User] said:

we pay his bills and he can offset energy against tax! 

Is that what you know, or what you think? 

All the landlord should be doing is billing you for what he is paying to his supplier for the energy that is supplied. Your contract/ agreement may contain an additional cost for metering and the raising of bills.

Ofgem’s advice for Park Home residents is here:

I know what the rules are around park home residents and selling energy but that assumes you dont have a dodgy site owner! And most businesses can offset energy costs against tax whether in part or in full.

QrizB

Sonic1969 said:

And most businesses can offset energy costs against tax whether in part or in full.

If your landlord is charging you for energy, they can't then claim it as a business expense.

And IIRC VAT on energy bills is not reclaimable.

matt_drummer

QrizB said:

Sonic1969 said:

And most businesses can offset energy costs against tax whether in part or in full.

If your landlord is charging you for energy, they can't then claim it as a business expense.

And IIRC VAT on energy bills is not reclaimable.

Actually they will claim the expense and declare the income.

They don't and can't claim the expense and disregard what they have charged on.

Any 'profit' they make on administration charges will be taxed.