Some landlords may include the cost of energy in with your rental payment. However, it can be common for tenancy contracts to include a fair usage policy.
Put simply, this means that your agreement is only inclusive up to the point where you exceed the fair usage policy. The amount may be capped by units of energy used, or the proportion of rent allocated for bills, for example £15 per person per week. A landlord/agent can then legally charge you additional rent for your utilities. It is important you find out these details before signing a tenancy.
How much you’ll pay for these utilities will depend on lots of things, including the size of the property, how many people you live with and who your energy supplier is. However, next to rent, gas and electricity will likely be your biggest expense.
You can potentially shop around but it is important you see what your tenancy agreement states about this. Some allow you to switch providers but state you must inform the landlord first, and others may state that a switch will need to be switched back prior to leaving the property. Bear in mind, your electricity and gas bills will be higher over winter when your central heating is on – so, make sure there’s extra room in your budget.
It is important that you are aware that your landlord cannot profit from resale of utilities – they can only charge for units you have used.
Top tip
On move-in day, take a picture of the gas and electricity meter so you are not liable for any previous bills. It’s also a good idea to pay for your electricity and gas via direct debit, which could reduce the amount you pay and help you to build up your credit score.
Last Updated: March 2025