Do you rent your accommodation? Did you know that tenants who pay their energy bills directly are entitled to switch gas and electricity supplier?
When it comes to switching energy suppliers, a number of urban myths continue to prevent tenants from finding a better deal.
One of these is that tenants can’t change their gas or electricity supplier. This is simply not the case, and anyone who rents a property and pays their own bills has the right to switch to a cheap energy provider.
Shockingly, research carried out by energy regulator Ofgem in 2014 revealed that 77% of those who rent their home have not changed their gas or electricity supplier. This means more than three-quarters of British tenants are missing out on what the regulator estimates to be a savings of up to £200 per year.
Even if your landlord pays your gas and electricity bill, you have a right to understand what you can be charged for and how much you can be charged. We’ve put together a handy FAQ about managing your energy costs as a renter.
Tenants switching energy supplier FAQ
As a tenant, can I switch energy supplier?
The short answer is yes, if you pay your energy bills directly.
If you’re a tenant and would like to save on your energy bills then, unless your landlord pays the charges, you can change energy supplier. The fact that you don’t own the property you live in does not affect your rights to switch.
In fact, energy regulator Ofgem set out to clear up any misconceptions surrounding this issue in September 2013, and issued guidance emphasising tenants’ rights to switch. The underlying message was clear: renting does not relinquish your right to find a cheap energy provider.
What if there’s a clause in my tenancy agreement about energy suppliers?
If you are directly responsible for paying your energy bills, there is no reason you should not be able to select a new energy supplier.
Do, however, let your landlord know if you decide to change energy provider. This isn’t mandatory but the gesture is often appreciated and may be written into your tenancy agreement.
What if my landlord pays my energy bills?
If your landlord covers your energy bills, either by paying them directly or as an intermediate, you do not have the right to switch. You need to have direct contact with your energy supplier if you are to be entitled to change.
However, it is worth noting that many landlords are understanding and might agree to change your supplier if you ask, although they are not obliged to do so.
When can my landlord charge me for gas and electricity?
Your landlord can charge you for energy if it is expressly stated in your tenancy agreement. If your contract says you must pay your energy bills to your landlord, then you are not required to pay anything to your energy supplier.
This situation is common if you live in rented accommodation and pay for your energy consumption directly to your landlord. The situation can also arise if you live in a caravan park and pay the land owner for energy use or if you live in a houseboat and pay the moorings operator for energy. Occasionally, the landlord of a holiday home will also bill you directly for your energy use.
It is important to note that you cannot be charged more than the maximum resale price (see next section) for your energy bills.
How much can my landlord charge me for energy?
Don’t worry, landlords can’t charge you whatever they want! There is a maximum price which tenants can be charged and this is called the maximum resale price. This fee is set by law and depends on how your energy consumption is recorded.
If your energy use is recorded by a gas or electric meter then you should be charged per unit and for your share of any relevant standing charges. You should also be charged a domestic rate, regardless of whether your landlord has a business agreement with an energy supplier.
If usage is determined by your landlord without the use of a meter, then your landlord must be able to show you how your costs have been estimated. Should your landlord be unable to demonstrate how this has been worked out, you might be in a position to ask for compensation.
As a tenant, what charges am I exempt from paying?
You can only be charged for the cost of any gas or electricity which you consume. Any energy charges related to administration or communal lighting, need to be billed separately by your landlord. The latter are not subject to any price restrictions.
Who is responsible for repairing the heating system?
As a tenant, you are not responsible for repairs to your central heating system. This is one of the landlord’s obligations. He or she is also in charge of ensuring any appliances supplied are in line with current safety regulations.
I think my landlord is overcharging me, what can I do?
If you think your landlord is charging you unfairly for your gas and electric use, you should start by asking how they have calculated the figure they are billing you.
If you disagree with their findings and are unable to resolve the matter informally, you can seek help from the Citizens Advice helpline.
What if I decide to move out?
If you decide to move out, you can have a look at our moving home gas and electricity guide for answers to any questions you might have.
How do I switch to a cheaper energy supplier?
The easiest way to find a cheap energy provider is to run an energy comparison. All you need to do is grab a recent energy bill and pop your post code into the green box. The whole process is quick and easy. If you have problems switching, have a look at our guide to getting a better deal.
For some more ideas on how to save on energy bills, check out our list of 17 ways for tenants to cut energy consumption.