Is the landlord overcharging for electricity?

Utility21

Hi,

My sister-in-law runs her own small business. She rents two units in a local building and has queried the electricity bill with the new landlord. They are charging 55p PKWH. Their response was that they took over the former landlords contract with the energy provider and can’t do anything about it, but we read that that isn’t possible. That they would have had to take out their own contract when they bought the building.

She has also asked them for a copy of their contract with the provider as it seems very expensive, when we know that energy costs are decreasing slightly. They refused to share that information and said we must pay the bill immediately. 

Please can you advise what we can do as the electricity bill is crippling the cash flow of the business.


Thanks

MeteredOut

The important detail is: What does the contract your sister-in-law signed with the landlord say?

What the landlord's contract states is secondary to that, and possible irrelevant.

Business contracts can be very onerous and business owners do not have the same protection as consumers, with lock-in periods and hefty get-out clauses. There's a good chance the previous owners energy contract would have rolled over with his purchase of the property.

MattMattMattUK

Utility21 said:

Hi,

My sister-in-law runs her own small business. She rents two units in a local building and has queried the electricity bill with the new landlord. They are charging 55p PKWH. Their response was that they took over the former landlords contract with the energy provider and can’t do anything about it, but we read that that isn’t possible. That they would have had to take out their own contract when they bought the building.

She has also asked them for a copy of their contract with the provider as it seems very expensive, when we know that energy costs are decreasing slightly. They refused to share that information and said we must pay the bill immediately. 

Please can you advise what we can do as the electricity bill is crippling the cash flow of the business.

Thanks

It is a business contract, so not restricted by the price cap. 

They may or may not have had to take out a contract, it depends how the purchase was structured (eg. was it a going concern rather than a sale of premises). Regardless of that it is irrelevant, what does her contract say with regard to electricity payment and prices? 

macman

Prices are only decreasing on SVT. If the LL has a fixed term contract at 55p for x years, then recent wholesale price drops are irrelevant. 

Robin9

Not forgetting that the landlord can add the costs of installing/maintaining the installation to the unit.

Depending on the standing charge 55p may not be too bad.