water charges
📖 What is water charges? Meaning and definition
Water charges typically include a standing charge and volumetric charges for freshwater, calculated based on meter readings. Sewerage charges are also usually calculated volumetrically, often referencing the freshwater meter readings. These charges are often aggregated across a business or property, then broken down to individual points, such as holiday parks or specific meter serial numbers.
In some tenancy arrangements, especially for flats or holiday parks, the total water usage for a master meter might be aggregated annually and then divided equally among the residential owners or lessees. This method of calculation and allocation can sometimes lead to disputes regarding the reasonableness of the charges.
Tenants or lessees have the right to challenge water charges if they believe them to be unreasonably high. Such challenges can lead to a tribunal determining the correct service charge amount for water for specific years, potentially resulting in credits being applied to the tenant's account. It is important for tenants to receive final demands for these charges, as demands 'on account' may not be sufficient for recovery.
Companies often use separate entities to validate invoices from water suppliers, ensuring that the breakdown of charges allocated to each property or point is correct before processing. This process aims to ensure accuracy, though the level of detail in the breakdown (e.g., down to individual meter serial readings) can vary.
📋 Requirements
- Charges include a standing charge and volumetric charges for freshwater.
- Sewerage charges are calculated volumetrically, often based on freshwater meter readings.
- Charges may be aggregated across multiple properties and then allocated.
- Final demands for payment must be made for charges to be recoverable.
- Charges must be reasonable if part of a service charge.
📝 Procedure
- Water supplier issues invoices with total charges.
- Charges are broken down by property point and potentially by meter serial number.
- A separate company may validate invoices and ensure correct allocation.
- Total usage for a meter is aggregated annually.
- Aggregated charges are divided among residential owners or lessees.
- Tenants can challenge unreasonable water charges at a tribunal.
💡 Examples
- A holiday park receives a single water bill, which is then broken down by individual holiday home and further by specific meter serial numbers for each home.
- A landlord aggregates the total water usage for a building with 35 flats and divides the annual water and sewerage charge equally among all the residential owners.
- A tenant successfully challenges their landlord's water charges at a tribunal, resulting in a credit being applied to their service charge account for several years.
- A property management company uses an independent firm to verify the water invoices from the utility provider to ensure the charges allocated to each block of flats are accurate.
📚 Legal basis
- Landlord and Tenant Act 1985
❓ Frequently asked questions
What do water charges typically include?
Water charges usually comprise a standing charge and volumetric charges for fresh water, which are calculated based on meter readings. Sewerage charges are also typically volumetric and often linked to the freshwater meter readings.
How are water charges calculated for properties with multiple residents?
For properties like holiday parks or blocks of flats, the total water usage for a master meter might be aggregated annually and then divided equally among the residential owners or lessees.
Can I challenge my water charges if I think they are too high?
Yes, tenants or lessees can challenge water charges if they believe them to be unreasonably high. Such challenges are typically heard by a tribunal, which can determine the correct amount.
What is the importance of 'final demands' for water charges?
For water charges to be legally recoverable from lessees, final demands for payment must be made. Demands for 'on account' payments may not be sufficient for recovery.
Are water charges always broken down to individual meter readings?
While charges are often broken down to individual property points, the level of detail, such as breaking them down further to individual meter serial readings, can vary and may not always be provided.
What if my landlord uses a separate company to validate water invoices?
It is common for landlords or property managers to use separate companies to validate water invoices from suppliers. This is done to ensure the accuracy of the breakdown and allocation of charges to each property before they are processed.