High standing charge for communal electricity supply in block of flats

System

This discussion was created from comments split from: Standing Charges on Gas And Electricity supplies.

Munsy100

Is there somewhere on here you can join a campaign to Reduce Standing Charges.

I own a flat in a block of 7.

Our Factor tendered for a Electricity Supply Contract for our Common Services (stair lighting) and accepted a deal from a company called Ecotricity with a Standing Charge of £7.32/day. £2,671.80 per year !!! with the contract to run for 3 years.!!!

I have asked our Factor for details as to what annual consumption this is based on.

So far nothing has come forth.

It's outrageous - we knew the contract was to be renewed at 1st August 2025 so months prior to that we asked what price we would pay. We never got an answer and what was worse we never saw electricity invoice till we received 5 bills together at the beginning of February.

Absolute Nightmare.

As our Factor is the "customer" their Consultant/broker AND the supplier will not speak to us.

The feeling in the block is "torches". While that will reduce our consumption we will still have to pay our outrageous Standing Charge

gpman

https://forums.moneysavingexpert.com/discussion/comment/81896140#Comment_81896140

Who do you pay for your energy? Your Factor (as agent for the landlord)? Or a licenced energy supplier?

If a licenced energy supplier, then I don't understand why your Factor is even involved.

In any event, your Factor appears to have agreed a commercial tariff. That is probably correct as they are presumably not a resident. This site is primarily for consumer finance matters.

I would advise you contact all your neighbours served/represented by this Factor, and if you can gain their collective support, make your representations en-masse to that Factor.

Btw, it is not usually good forum etiquette to bump a thread from 4 years ago; it would have been better to start a new thread. Please report your post and ask for this matter to be split into a new thread.

Edit: Welcome back!

Edit 2: I see the Factor is involved because it relates to a separate supply to the common parts, so that is why it is commercial. The consumption will be whatever is recorded by that appropriate meter Communal area supplies may not only be limited to lighting, but could include sockets for cleaning & maintenance purposes. There may also be other causes of consumption such as smoke alarms, door entry systems, etc, but they are probably low contributors to the overall consumption

MSE_ForumTeam5

Hi @Munsy100 - we've split your post into a thread of its own

Robin9

@Mumsy100 Could you give us an extract from the bill please - standing charge and unit consumption and VAT rate (I assume 20% but as a low consumption may be 5%) I assume Scotland as you say Factor.

Do you pay for your own electric independently - is pay SP or BG etc.

I used to manage a block of 6 - they all paid their electric bills to whatever supplier they chose I arranged the supplier for stairwell and security - consumption was very low and cost under £20 a month.

PS 15.38 Just dug out an old bill - 5 units a month , £3.26 VAT 5% . Thought that was high - UW - changed to OPUS and got below £3.On that basis 5 units today would cost £1.25/ s.c 60p a day is £18 - add VAT just over £20

gpman

Assuming the total development is (mainly) residential, then VAT should normally be charged at the residential rate of 5%, notwithstanding it is a commercial supply/tariff. I, too, used to be a director of a company that managed a development of apartments, one of which I used to live in. We had the landlord's supply for the common parts under a residential supply tariff (but I am aware that is not always the case)

Robin9

Not for the flats but i have a property on a commercial tariff £1.67 a day / 21.3 p a kWh plus 20% - less than 1000 units/ month

gpman

Looking at the Octopus offerings for commercial users (from their website) there seems a whole range of various tariffs. Some are with a zero standing but most are in the range 60-70 per day. Obviously terms & conditions will apply, and I have not looked at how they may apply to a residential landlord's supply, but even the most expensive SC < £4.60 per day.

Anything in excess of the 60-70p per day seems related to some form of exclusive/bespoke tariff and/or fixed tariffs < 12m duration.

StairLighting

Who has the Highest Electricity Standing Charges ?
Can anyone beat £7.32/day ??
Thats £2,671.80/ year
And its a 3 year Contract.

I own a flat in a 7 flatted block. We have a factor who put our Electricity Common Services (stair lighting) out to tender for a 1st Aug 2025 start.
Knowing there would be a price increase, so well before the contract was due to start we repeatedly asked our factor what the new costs would be. We received no reply.

Its only now in February 2026 we receive 5 bills (Aug, Sept, Oct, Nov, and Dec) all at once and I almost fainted at the shock of being charged £7.32 standing/day  !!

We have asked our factor for and explanation but none has been forthcoming.

Both the supplier “Ecotricity” or our Factors “Energy Consultant/Broker” wont speak to us as “we are not the customer” our Factor is.

Is there anywhere else we can voice our concerns ?  

Robin9

Please @stairlighting there is no need to repeat yesterdays post.

There were some questions there from Forum members,

QrizB

OP you (or another of your cohort) already have a thread here:

https://forums.moneysavingexpert.com/discussion/6656589/high-standing-charge-for-communal-electricity-supply-in-block-of-flats

Your communal electricity supply has a business energy account. These do not have the same price controls as domestic accounts but also offer a much wider range of tariff options.

It sounds as though your factor (managing agent?) may have chosen poorly, but without the full details of the tariff and your expected annual energy use it's impossible to say for certain.