First-tier Tribunal Adjusts Electricity Charges in Tenants' Service Charge

OUTCOME: Allowed

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00AY/LSC/2023/0427 Property : 60 [ADDRESS] [POSTCODE] Applicant: [redacted]

Respondent :

[redacted]

Type of application : Section 27A -Landlord and Tenant Act 1985 Tribunal member(s) : Judge Daley Mr John Naylor Venue : 10 [ADDRESS] [POSTCODE] Date of decision : 13 March 2025

ADDENMUM DECISION

1. This an addendum to the decision dated 4 June 2024.

2. On 4 June 2024, the Tribunal issued a decision in the following terms-: “The tribunal determines that the cost of electricity attributed to the Boiler for blocks DC1 & DC2, are not reasonable and payable for the year ending 2021.

3. The calculation of this sum, to be undertaken by the respondent, within 28 days of this decision. If this sum is not agreed, by the applicant the sum may be determined by the Tribunal.

4. The tribunal does not make an order under section 20C of the Landlord and Tenant Act 1985. “

2 5. On 2 July 2024, the Respondent provided additional submissions concerning concerning the cost of the electricity payable by the claimant.

6. In their submissions the Respondent set out that the Applicant had paid £87.30 for electricity for the written submission set out that The Applicant’s apportionment for the purposes of the service charge was 0.689005% for that year. In their submission at paragraph 6 they set out that “As the Tribunal were informed, the budget for 2025 now splits out the electricity costs between the various blocks, parts of blocks and communal areas so as to ensure that only those who benefit from electricity costs have to pay for them. From now on, the electricity costs will be split in percentage terms and apportioned throughout the site.” 7. The Tribunal were provided with a spreadsheet which set out the calculations.

8. Having considered the calculations the Tribunal are satisfied that calculation of the Applicant’s share is reasonable and payable.

The tribunal’s decision 9. The Tribunal finds that the service charges overpaid by the Applicant is in the sum of £35.44, the calculations are attached as appendix one.

Signed: Judge Daley Dated 13.03.25

© CROWN COPYRIGHT Appendix One Contribution to Communal Service Charge 0.689005% [ADDRESS] £141.74 Total Electricity Charge (Signed Accounts YE 2021) 12671 Contribution to [ADDRESS] 25% Contribution to Electricity for YE 2021 £87.30 DC3 Electricity £263.15 Total overcharged £35.44 Contribution to DC3 5.145119% Communal Electricity £453.10 Contribution to Communal SC 0.637244% £51.86 780 5,834 7,132 965 4,931 453 498 244 976 21,813 3.58% 26.75% 32.70% 4.42% 22.61% 2.08% 2.28% 1.12% 4.47% 12671 £453.10 £3,388.97 £4,142.80 £560.57 £2,864.42 £263.15 £289.29 £141.74 £566.96 £12,671.00 £2.89 £13.54 £35.43 £51.86 Total Service Charge - Block DC3 Service Charge - 1-4 Thackeray House Service Charge - 60-66 (evens) [ADDRESS] Charge - Garages DC1 Service Charge - Garages DC2 Service Charge - Undergrou nd [ADDRESS] Charge - 93- [ADDRESS] Service Charge Management Fees Insurance Charge Service Charge – Bike Shed, Bin Store Service Charge - Block DC1 Service Charge - Block DC1 Boiler Service Charge - Block DC2 Service Charge - Block DC2 Boiler Service Charge - 1-7, [ADDRESS] Charge - 72a,b,c [ADDRESS] YE 2021 Based on New Splits and YE 2021 Budget £35.44 £13.54 £2.89