electricity charges
📖 What is electricity charges? Meaning and definition
Electricity charges are the sums a tenant or occupier pays for the electricity they use. These charges are usually calculated by reading a meter to determine the units consumed, which are then multiplied by a unit price. This unit price can include elements like a pass-through of VAT. Additionally, a daily charge may be applied, often proportionally adjusted based on the number of connections or days since the last invoice.
Landlords or site owners are generally obliged to provide documentary evidence, such as electricity contracts and original bills, to support the sums charged for electricity, if requested by the occupier. This transparency is important for occupiers to understand how their charges are calculated and to verify their accuracy. Such documents should be provided free of charge and ideally without the need for an application to a tribunal.
For the purpose of legal provisions like section 20B of the Landlord and Tenant Act 1985, electricity costs are considered 'incurred' when an invoice for those charges is delivered or paid. This means that even if electricity has been consumed over a period, the legal obligation to pay for those costs for certain purposes may not arise until the bill is formally presented or settled. Discounts obtained by the party invoicing the electricity may also be a point of contention, with tribunals sometimes needing to determine whether these discounts should be passed on to the occupier.
📋 Requirements
- Meter readings are taken to calculate units consumed.
- A unit price, potentially including VAT, is applied to the consumed units.
- A daily charge may be added, adjusted proportionally.
- Documentary evidence, such as contracts and original bills, must be provided upon request.
- Costs are 'incurred' when an invoice is delivered or paid.
📝 Procedure
- The meter is read periodically (e.g., quarterly) to determine electricity usage.
- Units used are multiplied by the unit price, which includes any applicable VAT.
- A daily charge is calculated based on the number of days since the last invoice and adjusted proportionally.
- The daily charge is added to the figure for units consumed to form the total invoice.
- The occupier can request documentary evidence, such as the electricity contract and original bills, to support the charges.
💡 Examples
- A mobile home occupier receives a quarterly invoice for electricity, calculated by reading their meter, multiplying units by 51p (including 5% VAT), and adding a proportionally adjusted daily charge.
- A tenant requests to see the electricity contract and an original bill to verify the monthly electricity charges levied by the park owner, as they are entitled to under the 1983 Act.
- A landlord had not billed for electricity for five years; the Upper Tribunal ruled that the electricity charges were not 'incurred' for the purpose of the Landlord and Tenant Act 1985 until the invoice was delivered or paid.
- A park home resident questions the methodology used in calculating their monthly electricity bill and seeks supporting documentation from the site owner.
📚 Legal basis
- Landlord and Tenant Act 1985
❓ Frequently asked questions
How are electricity charges typically calculated for tenants?
Electricity charges are usually calculated by taking meter readings to determine the units consumed, multiplying these units by a specific unit price (which may include VAT), and then adding a daily standing charge, often adjusted for the billing period.
Can I ask my landlord for proof of the electricity charges?
Yes, if you are an occupier, you have the right to request documentary evidence, such as the electricity contract and original electricity bills, to support and explain any charges for electricity. This should be provided free of charge.
What if my landlord gets a discount on electricity bills?
The question of whether a landlord or site owner can retain the value of discounts they receive on electricity bills, or if these should be passed on to the occupier, can be a point of dispute and may be determined by a tribunal.
When are electricity costs considered 'incurred' in a legal sense?
For certain legal purposes, such as under section 20B of the Landlord and Tenant Act 1985, electricity costs are considered 'incurred' when the invoice for those charges is delivered or when the charges are paid.
What if I believe my electricity charges are too high or incorrectly calculated?
You should first request full documentary evidence and an explanation of the calculation from the party charging you. If you remain unsatisfied, you may be able to apply to a tribunal to have the charges reviewed. It is advisable to seek advice from a qualified solicitor if you are unsure of your rights or the process.