VadeLab
AllowedFirst-tier Tribunal (Property Chamber)·

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

Case No.

📌 In brief

The First-tier Tribunal reviewed a tenant's electricity charges in their service charge and found them to be unreasonable. They ordered a recalculation to ensure the charges were fair and reasonable. (Judge Daley, First-tier Tribunal)

⚖️ Legal holding

A tenant is entitled to reasonable electricity charges in their service charge.

Topics

service chargeelectricity charges

Provisions

Landlord and Tenant Act 1985 s.27A

📖 Technical summary

The Tribunal adjusted the electricity charges for the claimant's service charge.

📚 Full judgment Official document

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

📊 How courts decide similar cases

Among 12 similar decisions in this collection:

A snapshot of this collection — not a prediction of your case's outcome.

⚖️ What tends to weigh in cases like this

✅ Tends to be accepted

  • The tribunal found that the cost of electricity for the boiler for blocks DC1 and DC2 was not reasonable for the year ending 2021.
  • The respondent was required to calculate the specific sum of overpaid service charges within 28 days.
  • The tribunal was satisfied that the new calculation of the applicant's share of electricity costs was reasonable and payable.
  • The tribunal found that the applicant had overpaid service charges by £35.44.
  • The respondent's new budget for 2025 splits electricity costs to ensure only those who benefit pay for them.

Patterns observed in similar cases in this collection — every case is unique.

❓ Frequently asked questions

What did this decision decide?

The Tribunal decided that the electricity costs attributed to the boiler for blocks DC1 & DC2 were not reasonable for the year ending 2021.

What was the dispute about?

The dispute was about the reasonableness of electricity costs attributed to the boiler for blocks DC1 & DC2 for the year ending 2021.

How did the court decide, and why?

The court decided that the electricity costs were not reasonable because the calculation did not accurately reflect the actual usage and benefit received by the tenants.

Which laws or rules were applied?

The Landlord and Tenant Act 1985 s.27A was applied.

What was the argument that mattered most?

The argument that mattered most was the fairness of the electricity cost calculation for the year ending 2021.

Was the decision for or against the person who brought the case?

The decision was for the person who brought the case.

What does this mean for someone in a similar situation?

For someone in a similar situation, it means that service charges must be calculated fairly and accurately to reflect the actual usage and benefit received by the tenants.

What evidence or documents mattered?

The evidence and documents that mattered included the calculation of electricity costs and the budget for 2025 that splits out the electricity costs between the various blocks.

Official source: First-tier Tribunal (Property Chamber) — headnote and full judgment reproduced from the court's public records. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the First-tier Tribunal (Property Chamber) and is reproduced from its published records. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.