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Misled on utility costs – inflated prepay electricity rate at 85p/kWh


Hi all,
Single renter in a bedsit, one of 10+. The AST states I’m responsible for
2.4.1.3. all charges for gas and electricity consumed on or supplied to the Property and (as to electricity where a two part tariff is in force) the standing charge or charges and any meter rent;
and says
Inclusive Utilities Clause
Notwithstanding Clauses to the contrary it is agreed between the Landlord and the Tenant that rent is inclusive of all Wifi, Council Tax & Water charges.
After viewing the property and remembering being shown the electric PAYG meter in the room, I asked the agent for clarification on the electricity and gas and he wrote to me:
“You’ll just be responsible for the electricity you use within your flat, this is on a top-up meter.”
I did think I should probably argue over the AST detail but I was desperate for a new place (yes, I know ), so I went ahead.
Anyway, the top up meter (first time I've had a meter) did not seem to be "mine" ie. it's in the landlord's business name on the payment card. I was burning through electric and hardly using the heater at all, so I checked the settings on the top-up meter.
My “Energy Controls” prepay meter (E470 model) is set at shocking rates:
-
R1: 85p/kWh
-
R2: 75p/kWh
-
Standing charge: £5 per week (there are 10+ bedsits, so £50+ a week collected, if my other co-tenants are being charged as I am)
So in practice, we’re each paying around £20 a month just on standing charges, before the tariff which would seem unusually greedy, even for a business tariff.
I would assume they are in breach of the Maximum Resale Price rules, but I’d appreciate any advice from people who’ve dealt with this. I can imagine they might be doing some mental arithmetic to add the gas in, on my electricity meter.. could that be legal?
I emailed my agent for clarification on the rates, but he's silent. Should I take it to the landlord who is listed on HMO license? I no longer want to be here long term with this set-up, so I don't mind rocking the boat.
Have others challenged landlords on inflated sub-meter tariffs, and what was the outcome?
Thanks.
Comments
-
Are you sure landlord is not on a business tariff?
As pretty sure they are not allowed to charge more than they pay.Life in the slow lane1 -
born_again said:Are you sure landlord is not on a business tariff?
As pretty sure they are not allowed to charge more than they pay.0 -
snickeddoodle said:born_again said:Are you sure landlord is not on a business tariff?
As pretty sure they are not allowed to charge more than they pay.You can find out which company supplies the property by following the guide here:It's a two-step process.Knowing the supplier might be enough to tell you/us if the property is on a business tariff or a domestic one (some suppliers only do one or the other).N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill Coop member.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.2 -
It sounds like a landlord's sub-meter, and the landlord has signed up for a very bad business tariff.The landlord is only allowed to charge what they paid, with no profit for themselves. So the standing charge should be shared between tenants. You have no way to know if the landlord is being honest unless you can see the real electricity bill.Maybe get independent advice from the CAB?If it sticks, force it.
If it breaks, well it wasn't working right anyway.3 -
QrizB said:Knowing the supplier might be enough to tell you/us if the property is on a business tariff or a domestic one (some suppliers only do one or the other).1
-
snickeddoodle said:
Hi all,
Single renter in a bedsit, one of 10+. The AST states I’m responsible for
2.4.1.3. all charges for gas and electricity consumed on or supplied to the Property and (as to electricity where a two part tariff is in force) the standing charge or charges and any meter rent;
and says
Inclusive Utilities Clause
Notwithstanding Clauses to the contrary it is agreed between the Landlord and the Tenant that rent is inclusive of all Wifi, Council Tax & Water charges.
After viewing the property and remembering being shown the electric PAYG meter in the room, I asked the agent for clarification on the electricity and gas and he wrote to me:
“You’ll just be responsible for the electricity you use within your flat, this is on a top-up meter.”
I did think I should probably argue over the AST detail but I was desperate for a new place (yes, I know
), so I went ahead.
Anyway, the top up meter (first time I've had a meter) did not seem to be "mine" ie. it's in the landlord's business name on the payment card. I was burning through electric and hardly using the heater at all, so I checked the settings on the top-up meter.
My “Energy Controls” prepay meter (E470 model) is set at shocking rates:
-
R1: 85p/kWh
-
R2: 75p/kWh
-
Standing charge: £5 per week (there are 10+ bedsits, so £50+ a week collected, if my other co-tenants are being charged as I am)
So in practice, we’re each paying around £20 a month just on standing charges, before the tariff which would seem unusually greedy, even for a business tariff.
I would assume they are in breach of the Maximum Resale Price rules, but I’d appreciate any advice from people who’ve dealt with this. I can imagine they might be doing some mental arithmetic to add the gas in, on my electricity meter.. could that be legal?
I emailed my agent for clarification on the rates, but he's silent. Should I take it to the landlord who is listed on HMO license? I no longer want to be here long term with this set-up, so I don't mind rocking the boat.
Have others challenged landlords on inflated sub-meter tariffs, and what was the outcome?
Thanks.
The tennancy doesn't mention a rate only that you pay it - so no sure why you believe misled on cost.And arguably their may be two costs - one for communal supply - more likely to be in rent or simple / 10 - and one for the bedsit / flat. You may have tracked the total supply - or a seperate communal. But with 10 bedsits - there may be more than one street feed to the address.Does the landlord administer the meter's himself - or is he using an agency ? The meter rental comment and the Energy Controls rate sticker may or may not suggest latter.Possibly related sites from a quick googlehttps://www.energycontrols.co.uk/prepayment/ (with a tel no at bottom of page if not on sticker)Energy Controls is or was a meter fitter and a prepay / biller for even largish sites from a quick google - the meter itself is likely a Landis+Gyr E470 - it is or was their goto brand from a quick googleMaybe try to track them down - if the landlord isn't forthcoming with details ?Giving tem the account number on the prepay card.But I suspect they will be aware of the rules - on landlords not making a profit - by over charging.As to the card itself - it may be in the landlords name - but the payments are likely going to them.Effectively the landlord has probably outsourced the energy supply, meters and billing by the sound of it.And unless it has it's own actual street supply - your stuck with the landlords choice AFAIK.And although huge by todays SVT standard - I suspect it's maybe just some nasty old rate hanging around since crisis peak (which the supplier may be in no rush to renogetiate)Without the 34p discount from EPG - flat rate was nearer 70p - and my peak nearer 80p - in early 2023.1 -
-
If, as Scot_39 I think correctly suggests, the landlord has outsourced the metering, won't each bedsit's meter have its own standing charge?0
-
The mistake might be assuming the per flat charge would be one standing charge /10.Depends on how much heavy use - such as HW heating / showers / cooking etc s communal and how much included in each of the bedsits.But I suspect it will be more than 1 3 phase even - and maybe as much as 4 3 phase (1 phase per flat and a communal) if more towards the old "studio solo" model (bed/living/kitchen open plan, bathroom)1
-
GingerTim said:If, as Scot_39 I think correctly suggests, the landlord has outsourced the metering,...There are several "smart prepayment for landlords" metering providers. They all charge their cut, but essentially the landlord gets to tell the metering company what tariff to apply.Possible explanations, from most to least charitable:
- The landlord is stuck on a fixed-rate tariff from 2022;
- The landlord was once on an 85p/kWh tariff, has now got a better deal but has forgotten to update the settings at the smart meter provider;
- The landlord has a better deal but likes the flow of cash from the metering company and is pocketing it.
N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill Coop member.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.2 -
Thanks everyone. This actually feels a bit better. I had no idea business tariffs could be that high, and I'd rather be on a crappy tariff from a supplier, than a landlord's made-it-up rate. All good points too about the standing charge per meter, and potential complexity of supply. It is for reference, all open plan "studios" with a fridge and a small bathroom, shared kitchens x 2 with cooking facilities and washing machines.
Appreciate your time!1
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