Please Note: This Article is 8 years old. This increases the likelihood that some or all of it's content is now outdated.

Re-selling Energy – As a landlord am I able to make a profit by re-selling electricity or gas?

Resale of Gas and Electricity

The maximum amount that Residential Landlords or “resellers” are permitted to charge for gas or electricity is the amount they have paid for it, plus VAT at the appropriate rate; this is termed the Maximum Resale Price or MRP. Any standing charges can be recovered by the Landlord by dividing it on a pro-rata basis according to usage between all the tenants.

In other words, residential landlords cannot add additional charges to these utilities.

Factsheets on the current rules for MRP can be downloaded from the links below.

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However, these MRP provisions do not apply to gas or electricity resold by Commercial Landlords for use in commercial premises.

In these circumstances, it is likely that the cost of energy use is set as a bilateral agreement between the landlord and tenant.

This agreement would should be incorporated into the lease.

The issue therefore becomes a contractual matter between the contracting parties.

Where a consumer establishes a breach of contractual obligations, or questions the validity of the terms and conditions of a contract, he/she is advised to seek independent legal advice.

Last updated: 26/01/09

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©LandlordZONE All Rights Reserved – never rely totally on these standard answers which apply primarily to England & Wales. Before taking action or not, always do your own research and/or seek professional advice with the full facts of the case and all documents to hand.

Please Note: This Article is 8 years old. This increases the likelihood that some or all of it's content is now outdated.

3 COMMENTS

  1. Landlord overcharging buisness electricity bill reselling elec to me n not showing me as same meter two businesses run off he as a garage mot airfitring centre I av next door same supply from garage to my shop he is overcharging n estimating my elec from same supply as his garage which has lift welders ECT all electric

  2. Hello there may I ask do you have any knowlegde of Park Home Agreements etc etc dealing with resale of Electricity
    As park home residents we are not deemed to be a Main Bill Account Holder by the main Big Six Suppliers, that is the Site Owner who owns the SUB-METERS, Therefore this means he is the only one allowed to switch supplier or agree to Tariffs etc etc,
    We are the silent majority with no consultation powers
    When residents phone Eon the energy supplier at present As we do not have direct Account with them we are told Eon can not discuss any matters with relation to the Supply or tariffs
    Which means we have do not have the same rights of a Brick & Mortar occupant to switch suppliers if & when the deem so,
    In other words we Park Home Residents are treated as second class citizens by the Big Six suppliers
    Sorry to be such a pain Thanks B.Wilton-King

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