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Reselling Electricity

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I live in a building which has 116 residential apartments and 6 commercial units. We have one main meter coming into the building and then we have our own sub meters. The caretaker takes a meter reading and then the total consumption is then subtracted from the main meter which is then in the service charge budget as communal electricity. We all receive our own bills but the contract is in the freeholders name.
1. We have always been told we are on a commercial electricity tariff due to this, is this correct?
2. Our lease does not allow third party billing so can the freeholder bill us for electricity we have consumed in our apartments?
3. Does the freeholder have to have a licence with OFGEM to resell the electricity? Is there a register we can check or a contact number?
4. Can we request our own supply from another supplier?


Comments

  • molerat
    molerat Posts: 34,633 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    1) Yes
    2) Yes
    3) No
    4) If the freeholder will allow it.  How many £K are you willing to spend getting a supply installed ?
  • mmmmikey
    mmmmikey Posts: 2,344 Forumite
    Part of the Furniture 1,000 Posts Homepage Hero Name Dropper
    edited 30 June at 12:19PM
    I live in a building which has 116 residential apartments and 6 commercial units. We have one main meter coming into the building and then we have our own sub meters. The caretaker takes a meter reading and then the total consumption is then subtracted from the main meter which is then in the service charge budget as communal electricity. We all receive our own bills but the contract is in the freeholders name.
    1. We have always been told we are on a commercial electricity tariff due to this, is this correct?
    2. Our lease does not allow third party billing so can the freeholder bill us for electricity we have consumed in our apartments?
    3. Does the freeholder have to have a licence with OFGEM to resell the electricity? Is there a register we can check or a contact number?
    4. Can we request our own supply from another supplier?



    My understanding, others can maybe confirm:

    1. Yes
    2. Depends on the terms of the lease
    3. No as long as the freeholder is just dividing up the charges and not making a profit
    4. Depends on the terms of the lease

    EDIT - we crossed posts, go with @molerat answers, more their area of experience than mine although we do seem to be saying pretty much the same thing
  • Robin9
    Robin9 Posts: 12,805 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 30 June at 12:42PM
    1 Yes
    2 Yes but he must not make a profit ; he may recover his distribution and maintenance 
    3 No
    4 Yes  but may not be very practical to do so
    Never pay on an estimated bill. Always read and understand your bill
  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
    10,000 Posts Second Anniversary Name Dropper
    I live in a building which has 116 residential apartments and 6 commercial units. We have one main meter coming into the building and then we have our own sub meters. The caretaker takes a meter reading and then the total consumption is then subtracted from the main meter which is then in the service charge budget as communal electricity. We all receive our own bills but the contract is in the freeholders name.
    1. We have always been told we are on a commercial electricity tariff due to this, is this correct?
    2. Our lease does not allow third party billing so can the freeholder bill us for electricity we have consumed in our apartments?
    3. Does the freeholder have to have a licence with OFGEM to resell the electricity? Is there a register we can check or a contact number?
    4. Can we request our own supply from another supplier?
    1) Yes, the freeholders interest in the property is commercial so you will be on a commercial tariff 

    2) You'd need to state exactly what the clause states, it would be very odd for a freeholder not to be able to charge a service charge which will predominately be costs they've incurred from third parties for running the building

    3) No licence is required, they arent commercially selling electricity, they recharging the bill to the various users. They cannot make a profit from the resale

    4) You would need permission from the freeholder to get a new supply put in and it will not be cheap to get a new supply provisioned. 
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