Can my landlord charge me for gas, electricity and water?

Many tenants are unsure about their rights when it comes to utility bills, whether the landlord can charge them for gas, electricity, and water on top of rent, and whether the amounts being charged are fair. Here are the rules.

The two main arrangements

Bills in your name: In many private tenancies, you set up your own utility accounts directly with suppliers. You pay the supplier directly and the landlord is not involved. In this arrangement, you can shop around, switch suppliers, and manage your own usage.

Bills included in the rent (landlord charges utilities): In some arrangements, especially HMOs, bedsits, and some private tenancies, the landlord pays for utilities and charges you as part of the rent, or via a separate charge on top. These arrangements are lawful, but there are strict limits on what the landlord can charge.

Can the landlord charge more than they pay for utilities?

No, not legally. Under the Landlord and Tenant Act 1985 (and regulations made under it), a landlord who supplies gas and electricity to a residential tenant cannot charge more than the rates they themselves pay to the supplier. This is known as the "resale" rule.

If a landlord has a pre-payment meter or a separate meter for each room and then bills you, they can charge you what they paid, but no more. Charging a profit on top of the utility cost is unlawful.

Practical difficulty: In practice, many tenants in HMOs and houses of multiple occupation are charged lump-sum amounts for utilities included in the rent without ever seeing the underlying bills. If you think you are being overcharged, ask your landlord in writing to confirm the per-unit rate they are paying and how your share has been calculated.

Water

The rules for water are slightly different. Water suppliers in England are regional monopolies. In most private rentals where water is in your name, you deal directly with the water supplier. If your landlord pays for water and passes on the cost, the resale cap applies in the same way as for gas and electricity.

Electricity and the Ofgem price cap

The Ofgem energy price cap applies to domestic energy tariffs. Landlords who resell electricity or gas to tenants cannot exceed the price cap unit rate, and must charge no more than the price they actually pay. Ofgem has confirmed this applies to landlords who resell to tenants.

Prepayment meters in rented homes

If your property has a prepayment meter (a "pay as you go" meter), you will add credit before using energy. Prepayment meters often have higher unit rates than credit meters. If your property has a prepayment meter and you are struggling to afford to top it up, you can ask your landlord to switch it to a credit meter, the Energy Act 2023 has strengthened protections in this area.

See our guide: /help-centre/prepayment-meter-tenant-rights.

Bills included in rent: are there other rules?

If your rent includes bills:

• The total amount (rent plus bills) must be agreed in writing
• If the landlord wants to increase the amount to cover rising utility costs, any increase must follow the terms of your tenancy agreement and the standard rules for rent increases
• You should receive a breakdown of how the utility charge is calculated if you ask for it

Energy efficiency and cold homes

If your home is poorly insulated and your heating bills are very high as a result, this may be a disrepair issue. A landlord who fails to maintain adequate heating or allows the property to deteriorate to the point where it is excessively expensive to heat may be breaching their repair duties.

What to do if you think you are being overcharged

1. Ask for a written breakdown: Request in writing the unit rate your landlord is paying and how your charge is calculated.
2. Check the Ofgem price cap: Compare the rate you are being charged to the current Ofgem cap.
3. Complain in writing: If you believe you are being overcharged, set out your concern in writing and ask for a correction.
4. Contact Citizens Advice or Ofgem: Citizens Advice can advise on your rights and help you escalate a complaint.

When should I contact Support for Tenants?

Utility overcharging is not a housing disrepair issue in itself. But if your home is cold because of inadequate heating or poor insulation that your landlord has not fixed, you may have a disrepair claim. Call us on 0800 030 4669.

No upfront cost. You only pay if you win, and the fee comes out of the compensation. If you don't win, you pay nothing.

Sources

• Tenant Fees Act 2019 (legislation.gov.uk)
• Section 11, Landlord and Tenant Act 1985 (legislation.gov.uk)

Related articles

• Can I change energy supplier as a tenant?
• Prepayment meter, tenant rights
• Fuel poverty, help for tenants