A new government consultation aims to study whether its planned Energy Bills Support Scheme (EBSS) will treat all tenants fairly.

The scheme, announced in February as part of a package of support to help domestic energy customers with the costs of rising energy bills, starts in October and will provide funding so that all energy suppliers can pass a £200 reduction to domestic electricity customers.

This will be recovered through electricity bills over five years starting from 2023. 

Landlords must pass on the reduction to tenants; those with a domestic electricity connection who charge ‘all inclusive’ rent, where energy costs are included, will need to ensure that both the grant payments and the levy are also passed on to tenants.

Those with tenants who share a meter point will need to ensure that both the grant received, and the subsequent levy, is shared fairly between tenants.

The consultation – which closes on 23rd May – will look at whether the government should explore issues relating to tenancy agreements, for example, if a tenant has moved into a property after the rebate has been issued.

Split bills

It will also consider a situation where tenants split and pay utility bills separately but occupy the same property, and when tenants move into another property during the five years of the rebate.

London rental platform Rentd has revealed that opting for a rental property that includes bills costs the average tenant an extra £700 a year.

It found that the cost of renting a property without bills costs an average of £1,724 per month while those that include them average £2,023 per month – 17% more. 

Just 8% of all London rental homes currently listed on the market offer bills included within the top-line cost of renting. 

4 COMMENTS

  1. Always complicated!!!

    Tenant gets rebate, moves out and then future tenants pay more while paying it back.

    Easiest solution for “bills included” type property?

    LANDLORD GETS £200 “LOAN” – THEN DOES NOTHING UNTIL 2023.

    Then, when repayment is due at £40/year, simply reduce the rent by £3.35 per month to the tenant in the property. Ensure AST states £XXpcm less credit for fuel payback of £3.35pcm, with a total £ZZpcm payable.

    Do it for the 5 year payback period and everyone gets what they’re due.

    As for std AST, the current tenant gets £200, moves out. All future tenants pay back the money the old tenant enjoyed = well done Government.

  2. This is an over complicated process that doesn’t really help anyone & will undoubtedly have losers amongst tenants.

    The Govt should just remove green levies from utility bills & help everyone.

  3. A £200 credit, which has to be repaid.

    All inclusive landlords, then dot be offered by HMOs. If you have a 5 bed property, it would be ££3.85 for the property or 76pence per tenant.

    What about landlords who rent out rooms in their own homes?

    Who has the time to deal with administrations? That £200, will have to be re-paid by the landlord in future years. So it seems hardly fair.

    It is a good money spinner for energy companies, who have to administer the scheme.

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