Introduction to Energy Charges by Landlords
When you rent a home, your landlord may be responsible for arranging your energy supply, or you might have your own account with an energy provider. Understanding how and when your landlord can charge you for energy is essential to ensure you’re not paying more than you should.
In many rented properties, energy charges can work in one of two ways. Sometimes, the cost of gas and electricity is included in your rent. In other cases, your landlord bills you separately for what you use. The way you’re charged should be clearly set out in your tenancy agreement. If your landlord is the one who pays the energy supplier, they’re allowed to ask you to reimburse them, but there are legal limits to how much they can charge.
Under the law, landlords cannot make a profit from supplying energy to tenants. The maximum they can charge you is known as the “maximum resale price,” which is set by Ofgem (the energy regulator). This means your landlord can only ask you to pay what they paid the supplier, including any standing charges, plus VAT if applicable. If you believe you’re being overcharged, you have the right to ask for a breakdown of the costs and challenge unfair charges.
It’s important to understand these rules so you can protect your rights as a tenant. Knowing how energy charges should be calculated can help you spot mistakes or unfair practices early on. If you’re experiencing issues, or if you have wider concerns about your energy supply or how it’s being managed, you may find it helpful to read more about problems with your energy supply or supplier.
By being informed about your landlord’s responsibilities and your own rights, you can ensure you’re only paying what’s fair for the energy you use in your home.
When Can Your Landlord Charge You for Energy?
When Can Your Landlord Charge You for Energy?
Understanding when and how your landlord can charge you for energy is essential to avoid unexpected costs and ensure your rights as a tenant are protected. The rules depend on your tenancy agreement and how your home’s energy supply is managed.
Energy Costs Included in Rent
In many rental agreements, especially for shared houses or flats, energy costs such as gas and electricity are included in your rent. This means you pay a single amount each month, and the landlord is responsible for paying the energy bills directly to the supplier. If this is the case, your tenancy agreement should clearly state that energy is included, so you know exactly what you’re paying for.
This arrangement can offer simplicity, but it’s important to check for any clauses about “fair usage” or limits on how much energy you can use. If you exceed these limits, your landlord may be able to charge you extra, but only if this is specified in your agreement.
When Energy Is Billed Separately by the Landlord
Sometimes, landlords pay the energy supplier and then bill you separately for your share of the costs. This is common in houses in multiple occupation (HMOs) or where there is a single meter for the whole building. In these cases, your landlord must provide you with a clear breakdown of the charges and cannot profit from reselling energy to you – they can only charge you what they pay the supplier, plus a small administrative fee if agreed in your contract.
If you have a direct contract with the energy supplier (for example, if your name is on the bill), your landlord cannot charge you for energy, as you pay the supplier directly.
Legal Basis for Energy Charges
Landlords’ responsibilities and limits on what they can charge are set by law. Under the Landlord and Tenant Act 1985, Section 11, landlords must ensure the supply of gas and electricity is maintained and that installations are kept in good repair. However, they are not entitled to make a profit from reselling energy to tenants. The law requires that any charges for gas or electricity supplied by the landlord must not exceed the amount the landlord is charged by the supplier.
The Electricity Act 1989 and the Gas Act 1986 both set out further rules on how energy can be supplied and charged for in rented properties. These laws ensure that tenants are protected from unfair or excessive charges and give you the right to ask for a breakdown of costs if you are billed by your landlord.
Practical Advice for Tenants
Check your tenancy agreement to see whether energy is included in your rent or billed separately.
Ask for receipts or statements if your landlord charges you for energy, to ensure you’re not paying more than the supplier’s rate.
Know your rights – you are entitled to fair treatment and transparent billing. If you’re unsure, read more about tenant rights relating to energy charges and rental agreements.
Challenge unfair charges – if you believe your landlord is overcharging you, you can raise the issue with them and seek advice if needed.
Knowing when your landlord can charge you for energy – and the legal limits on those charges – helps you avoid being overcharged and ensures your rental experience is fair and transparent.
How Much Can Your Landlord Charge for Energy?
When your landlord is responsible for supplying your energy – such as gas or electricity – they must follow strict rules about what they can charge you. The law is designed to protect tenants from being overcharged or unfairly treated.
Fair Pricing Based on Actual Usage
Your landlord can only charge you for the energy you actually use, or for a fair share if the bill covers several tenants. This means the amount you pay should accurately reflect your consumption, not an inflated estimate or a flat rate that doesn’t consider your actual usage. For example, if you have a separate meter for your property, your landlord should use the readings from that meter to calculate your share of the bill.
Limits on Markups and Additional Fees
Landlords are not allowed to add excessive markups or hidden fees to your energy bill. The maximum amount a landlord can charge is regulated by what’s called the "maximum resale price." This rule is set out in the Maximum Resale Price provisions under the Gas Act 1986 and the Electricity Act 1989. In simple terms, your landlord cannot charge you more than what they themselves pay to the energy supplier, plus a small, reasonable administration cost if necessary.
For example, if your landlord pays 20p per unit of electricity to the supplier, they cannot charge you 25p per unit just to make extra profit. Any administration fee must be clearly explained and should only cover the actual cost of managing the bill – not an opportunity for your landlord to make money from your energy use.
No Excessive Profits Allowed
It is illegal for landlords to make a profit from reselling energy to tenants. The law is clear: landlords must pass on the cost of energy fairly and transparently. If you suspect you are being overcharged, you have the right to ask your landlord for a breakdown of the charges, including copies of the original energy bills from the supplier.
If you believe your landlord is not complying with these rules, you can seek advice or make a complaint. For more detailed information about your rights as a tenant regarding energy charges, you can visit Ofgem, the UK’s independent energy regulator. Ofgem provides clear guidance on how much landlords can charge and what to do if you think you are being overcharged.
Understanding these rules can help you make sure you are only paying your fair share for energy. If you have concerns, don’t hesitate to ask your landlord for clarification or seek further advice.
Energy Included in Rent vs. Separate Billing
When it comes to paying for energy in your rented home, there are two main ways your landlord might handle these costs: energy can either be included in your rent, or you may be billed separately for what you use. Understanding the difference is important, as it affects your rights and what you can be charged.
Energy Costs Included in Rent
If your tenancy agreement states that energy costs (such as gas and electricity) are included in your rent, you pay a set amount to your landlord each month. This means you don’t pay the energy supplier directly – your landlord is responsible for paying the bills. This arrangement is common in some house shares, student accommodation, or where rent is advertised as “all bills included.”
What does this mean for you?
The amount you pay for energy is fixed as part of your rent, so your monthly costs are predictable.
Your landlord cannot ask you to pay extra for energy use unless your tenancy agreement specifically allows for it.
You won’t usually be able to choose your own energy supplier or tariff in this situation, as the contract with the energy company is in your landlord’s name.
Separate Billing for Energy
If your tenancy agreement says you are responsible for energy bills, you will either pay the supplier directly or pay your landlord based on your actual usage. In this case, you should receive bills in your name, and you can see exactly what you are being charged for.
What to look out for:
Check whether your tenancy agreement names you as responsible for utility bills.
If you pay your landlord rather than the supplier, ask for copies of the energy bills to see how your share is calculated.
If the bills are in your name, you have the right to choose your own supplier or tariff. For more information about this, see switching energy supplier or tariff if you’re renting.
How to Identify What You’re Paying For
Always review your tenancy agreement carefully. It should clearly state whether energy costs are included in your rent or billed separately. Look for phrases like “bills included,” “utilities included,” or “exclusive of bills.” If you’re unsure, ask your landlord for clarification before you sign or renew your agreement.
What to Check in Your Tenancy Agreement
Who is responsible for paying the energy bills? The agreement should specify if it’s you or the landlord.
How are charges calculated? If you’re paying the landlord, make sure it’s clear how your share is worked out – especially if you’re in a shared property.
Are there any limits on charges? Your landlord cannot charge you more than they pay the energy supplier (this is known as the ‘maximum resale price’ under the Gas Act 1986 and the Electricity Act 1989).
Can you switch supplier? If you pay the supplier directly, you have the right to switch to a better deal.
Understanding these points will help you avoid being overcharged and ensure you know exactly what you’re paying for. If you have any concerns, always ask your landlord for a breakdown of costs and keep records of all payments and agreements.
Prepayment Meters and Energy Charges by Landlords
A prepayment meter is a type of energy meter that requires you to pay for your gas or electricity before you use it, usually by adding credit with a key, card, or app. Some landlords install prepayment meters in rental properties so tenants can manage their own energy usage and costs. In these cases, you’ll need to top up the meter regularly to keep your supply running.
How landlords may charge through prepayment meters
If your home has a prepayment meter, your landlord might either leave the account in your name, so you deal directly with the energy supplier, or manage the meter themselves. In some situations, landlords buy energy in bulk from the supplier and then sell it on to tenants, setting their own rates. Legally, landlords cannot charge you more for energy than they themselves pay for it. This is known as the “maximum resale price” rule, set out in the Gas Act 1986 and the Electricity Act 1989. The maximum your landlord can charge you is the amount they paid to the supplier, including VAT, but no extra fees or mark-ups.
Common issues with prepayment meters
Tenants with prepayment meters often face practical problems, such as:
Difficulty accessing the meter if it’s in a locked cupboard or a communal area.
Trouble topping up if the landlord hasn’t provided the correct key or card, or if the meter hasn’t been registered to your name.
Running out of credit outside of shop hours or during emergencies, leading to loss of supply.
Being charged more than the standard rate if the landlord sets higher prices than the supplier’s tariff.
If you suspect your landlord is charging you more than they pay, you have the right to ask for proof of what they are being charged by the energy supplier.
What to do if you have problems
If you’re struggling to top up your meter, can’t access it, or are unsure whether you’re being charged fairly, it’s important to act quickly so you don’t lose your energy supply. Start by contacting your landlord to explain the issue. If that doesn’t resolve things, you can find step-by-step guidance on what to do about problems getting to or topping up your prepayment meter.
Remember, your landlord must not disconnect your energy supply or make it unreasonably difficult for you to keep your meter topped up. If you continue to have issues or believe you’re being overcharged, you may be able to get further help or make a formal complaint.
What to Do If You Think You’re Being Overcharged
If you suspect your landlord is charging you too much for energy, it’s important to act quickly to protect your rights and finances. Here’s how you can check if the charges are fair, and what steps to take if you believe you’re being overcharged.
1. Check How Your Energy Charges Are Calculated
Start by reviewing your tenancy agreement to see how energy costs are supposed to be handled. Some landlords include energy bills in your rent, while others bill you separately. If you’re billed separately, your landlord should provide a clear breakdown showing how your share is worked out.
If you have your own energy meter: You should only pay for the energy you use, based on meter readings and the actual rates charged by the supplier.
If you share energy with other tenants: Charges should be divided fairly and reflect the actual usage.
If energy is included in your rent: Your landlord can only charge you up to the amount they actually pay the energy supplier, plus a small administrative fee (known as the “maximum resale price” under the Electricity Act 1989 and Gas Act 1986).
2. Compare Charges to Your Landlord’s Costs
Ask your landlord for copies of the actual energy bills from the supplier. By law, they must show you these if you request them. Compare the amounts you’re being charged to the supplier’s rates. If you notice a significant difference, your landlord may be overcharging you.
3. Keep Detailed Records
Always keep copies of:
Your tenancy agreement
Any bills or statements from your landlord
Correspondence about energy charges
Receipts for payments you’ve made
Having a clear paper trail will make it easier to resolve any disputes.
4. Raise the Issue with Your Landlord
If you think you’re being overcharged, contact your landlord in writing. Politely explain your concerns and ask for an explanation of the charges, along with copies of the supplier’s bills if you haven’t already received them. Keep a record of all communications.
5. Take Further Action If Needed
If your landlord refuses to provide information or continues to overcharge you, you have the right to challenge the charges. You can:
Remind your landlord of the legal limits on energy charges (the maximum resale price).
Seek advice or support from a local advice centre or tenants’ association.
Consider making a formal complaint or taking the matter to a tribunal if the issue isn’t resolved.
To better understand your protections and what you can do next, see our guide to tenant rights.
By staying informed and keeping good records, you can make sure you’re only paying what’s fair for your energy use. If you’re unsure about your situation, don’t hesitate to get advice and assert your rights as a tenant.
Issues Related to Energy Supply and Your Landlord’s Charges
When it comes to energy supply in rented homes, several issues can affect what your landlord charges you. Understanding these problems and your rights can help you avoid being overcharged and ensure you’re getting a fair deal.
Common Problems with Energy Supply Affecting Charges
Some of the most frequent issues tenants face include:
Unexpected Increases in Energy Costs: If your landlord includes energy charges in your rent or bills you separately, sudden price rises can be a concern. Landlords must not charge you more than the amount they pay the supplier, plus a small administration fee. The maximum they can charge is set out in the Energy Supply Regulations 2010. You can find detailed guidance on this at Energy Supply Regulations 2010.
Lack of Transparency: Sometimes, tenants are not given clear information about how their energy charges are calculated. Your landlord should provide you with a breakdown of costs on request, including copies of energy bills if you pay them directly or as part of your rent.
Meter Access and Readings: If you don’t have access to the energy meter, it can be difficult to check your usage and confirm you’re being charged correctly. You have the right to see the meter and understand how your charges are worked out.
What Happens if Your Energy Supplier Changes or Goes Bust
If your landlord is responsible for the energy supply, changes with the supplier can affect your charges:
Supplier Goes Bust: If your energy supplier has gone bust, Ofgem (the energy regulator) will appoint a new supplier. Your landlord should not use this as an excuse to overcharge you. The new supplier will take over your supply, and your landlord must still follow the rules on maximum charges.
Supplier Changes: Sometimes, your landlord may switch energy suppliers, or a new supplier is appointed. You can check who’s taken over your energy supply to confirm who is providing your gas or electricity and ensure you are being charged the correct rates.
Tenant Protections in These Situations
The law protects tenants from unfair energy charges. Key protections include:
Maximum Resale Price: Under the Energy Supply Regulations 2010, your landlord cannot charge you more than they pay for energy, plus a reasonable administration fee. If you think you’re being charged too much, you can ask your landlord for evidence of what they pay.
Right to Information: You can request copies of bills and a breakdown of how your charges are calculated. If your landlord refuses, this could be a breach of your rights.
Regulatory Oversight: The Office of Gas and Electricity Markets (Ofgem) regulates energy suppliers and protects consumers. Ofgem ensures that both landlords and suppliers follow the rules, and provides guidance if you have a dispute.
Help and Advice: If you have concerns about your landlord’s energy charges, you can find practical advice and information about your rights at Energy Supply Regulations 2010.
If you suspect you’re being overcharged or your landlord isn’t following the rules, it’s important to seek advice and know your rights. This will help you make sure you’re only paying what’s fair for your energy use.
Dealing with Power Cuts and Disconnections
If you experience a power cut or are threatened with disconnection of your energy supply, it’s important to know your rights as a tenant and what your landlord is legally allowed to do.
Your Rights During Power Cuts
Power cuts can happen for various reasons, such as faults on the network or planned maintenance. If your energy is supplied through your landlord (for example, if you pay them directly for electricity or gas), they must not deliberately disconnect your supply without following the correct legal process. Landlords are generally not allowed to cut off your energy to force you to pay rent or for any other reason related to a dispute.
If your power cut is due to a wider issue – like a network fault – your landlord is not responsible for restoring the supply, but they should help you access information and support. To prepare for unexpected outages and minimise disruption, you can follow these power cuts – preparation and tips.
When Can a Landlord Disconnect Your Energy Supply?
By law, landlords cannot simply disconnect your energy supply as a way to recover unpaid rent or energy bills. Under the Protection from Eviction Act 1977, it is illegal for landlords to harass tenants or attempt to evict them by cutting off essential services like gas or electricity. If your landlord threatens to disconnect your energy, this could be considered an unlawful eviction or harassment.
If your tenancy agreement includes bills and you are up to date with your rent, you should not face disconnection. If you pay your landlord separately for energy, they must only charge you for what you use, and any threat of disconnection must follow strict procedures. For more guidance on what to do if you’ve been told your energy supply will be disconnected, see this detailed advice.
What to Do If You’re Facing Disconnection or a Power Cut
If you’re threatened with disconnection, or your landlord has already cut off your energy supply:
Contact your landlord in writing – Explain the situation and remind them of their legal obligations.
Keep records – Save copies of all communications and note any details of the disconnection or threats.
Seek advice – If your landlord continues to threaten or disconnect your supply, you may need to contact your local council’s housing department or seek legal support.
Check your tenancy agreement – Make sure you understand what it says about energy supply and payment.
Know your rights – Remember, your landlord cannot disconnect your supply without a court order, except in rare circumstances.
If the power cut is due to an external fault (and not your landlord), you may be entitled to financial compensation. Learn more about how to get compensation if you have a power cut.
Understanding your rights can help you respond confidently to any issues with your energy supply. If you need further information about dealing with disconnections or want to ensure you are not being overcharged, check the related sections on this page or seek professional advice.
Energy Supply and Charges on Heat Networks
A heat network – sometimes called district heating or communal heating – is a system where heat is generated at a central source and distributed to multiple homes or buildings through insulated pipes. Instead of each flat or house having its own boiler or electric heater, the heat is supplied from a shared system. If your home is part of a heat network, your landlord is responsible for managing your connection and billing you for the energy you use.
How Heat Networks Affect Your Energy Charges
When you live in a property supplied by a heat network, you usually pay your landlord (or sometimes a managing agent) for your heating and hot water, rather than paying an energy supplier directly. The landlord buys energy in bulk for the whole building or estate and then passes on the cost to each tenant. This can be included in your rent or billed separately as a service charge.
Your Rights and Your Landlord’s Responsibilities
Landlords who operate heat networks must follow specific rules designed to protect tenants and ensure fair charging. The main regulations are set out in the Heat Network (Metering and Billing) Regulations 2014. These regulations require landlords to:
Install individual meters or heat cost allocators for each home, where it is technically and economically feasible. This allows you to be charged based on your actual usage rather than a flat rate.
Provide clear and regular bills that show how your charges are calculated, including details of your consumption, tariffs, and any standing charges.
Ensure charges are reasonable and transparent. Landlords are not allowed to make a profit from the supply of energy – they can only pass on the cost of the energy purchased and reasonable administrative expenses.
Register the heat network with the relevant authority and provide information about the system and its users.
You have the right to ask your landlord for a breakdown of your energy charges and to check that you are only paying for your fair share. If you are concerned about being overcharged or want to know more about your protections, see our guide on if your home is on a heat network.
What Charges Are Allowed?
Landlords can only charge you for:
The actual cost of the energy used to heat your home and provide hot water, based on metered usage if possible.
A share of the standing charges or maintenance costs necessary to run the heat network.
Reasonable administrative costs for managing the billing process.
They cannot:
Add extra profit on top of the energy costs.
Charge you for energy you have not used (unless your system cannot be individually metered, in which case charges must still be fair and based on a reasonable method).
Further Information
For more details on the regulations and your rights, you can refer to the Heat Network (Metering and Billing) Regulations 2014. If you want to understand more about how heat networks are regulated and who oversees energy policy in the UK, visit the Department for Business, Energy & Industrial Strategy (BEIS).
Understanding your rights and your landlord’s obligations can help you ensure you are only paying what is fair for your energy use on a heat network. If you have concerns about your charges, start by requesting a full breakdown from your landlord and reviewing the information provided in your tenancy agreement and bills.
How to Manage and Reduce Your Energy Costs
How to Manage and Reduce Your Energy Costs
Managing your energy costs as a tenant can make a big difference to your monthly outgoings. Whether your landlord includes energy bills in your rent or charges you separately, understanding how these costs are calculated and what you can do to keep them down is essential. Here are some practical steps you can take:
1. Understand How Your Landlord Charges for Energy
Landlords must follow specific rules when charging tenants for energy. If your energy costs are included in your rent, your landlord can only charge you what they actually pay to the supplier – they cannot make a profit on your usage. If you receive a separate bill from your landlord, it should be based on actual usage or a fair estimate, and you have the right to ask for a breakdown of the charges.
Knowing exactly what you’re being charged for helps you budget more accurately and spot any overcharging. If you think your landlord is charging too much, you can request evidence of the costs or seek further advice.
2. Take Control of Your Energy Usage
Simple changes in your daily routine can help reduce your energy bills:
Switch off lights and appliances when not in use.
Use energy-efficient bulbs and appliances where possible.
Set your heating to a comfortable but not excessive temperature.
Keep doors and windows closed when heating is on to prevent heat loss.
Use timers or smart thermostats to control heating and hot water.
For more detailed advice, see these energy management tips tailored for UK tenants.
3. Check for Grants and Support
If you’re struggling to afford your energy bills, there are grants and support schemes available. These can help with the cost of heating your home or making energy-saving improvements. You might be eligible for government grants, local council support, or help from energy suppliers.
Find out how to cut your UK energy bills – expert tips, grants & support to see what assistance you could access.
4. Know Your Rights and Where to Get Help
If you’re worried about your ability to pay energy bills or think you’re being unfairly charged, it’s important to know your rights as a tenant. You may also be able to get help with other housing costs if you’re on a low income or facing financial difficulty. Learn more about available housing assistance and how to apply.
By understanding how your landlord charges for energy and taking practical steps to reduce usage, you can better manage your household budget. If you need further support, explore the linked resources for expert advice and financial help.
