Landlords could be liable for energy charges at their rental properties if they or their tenants don’t provide information to energy suppliers when a tenancy changes.

Under proposals from watchdog Ofgem, new legislation would reform the home move process, meaning that landlords would have to provide “timely and accurate information” to their supplier when tenants move into or out of a property. Where neither the tenant nor landlord has done this, landlords would take the hit.

The government also plans to bring in new legislation to strengthen tenants’ rights to get smart meters installed.

The moves are part of its debt strategy which explains that consumer energy debt now stands at £5 billion, triple what it was in 2021 before the Russian invasion of Ukraine. A new consultation suggests changes to the energy-account process when people move home, mainly by preventing debt from accumulating when a new occupier hasn’t registered with an energy supplier.

Occupancy

Ofgem estimates that 20-40% of energy debt is associated with changes in occupancy, driven both by uncertainty over who new occupiers of a property are and consumers leaving properties without clearing outstanding balances.

The government explains this reform will protect both tenants and landlords alike. “It will prevent tenants from receiving large, backdated bills, or inheriting bills from previous occupiers, thereby increasing certainty over energy costs, and for landlords it will mean that their tenants are less likely to fall into energy debt, which may compromise their ability to pay rent or other bills.”

It says it recognises that this reform may take some time to come into effect so will look at what shorter-term interim measures can be put in place, to avoid further debt accumulation.

Evidence

The government adds that evidence from energy suppliers and consumer groups suggests confusion between tenants and landlords about responsibilities for installing smart meters is a key barrier, alongside a minority of private landlords who actively prohibit installation by their tenants.

New legislation would strengthen tenant rights to have a smart meter and tackle bad practice from landlords. It adds: “These powers will establish that a tenant who pays the energy bills at their rented property can get a smart meter without their landlord’s consent. We acknowledge that in a small number of circumstances, landlords may have legitimate reasons for either knowing that a smart meter has been installed or to refuse the installation of a smart meter.”

The consultation closes on 9 December.

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