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'fair usage clause' - are you overpaying on utilities?

Witten by: SU Advice https://www.upsu.com/advice/

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It is important before you sign a tenancy agreement that you understand exactly what you are expected to pay and when. Rent is self-explanatory, although you still need to ensure amounts listed and payment dates are correct. Things can, however, prove to be a little more complex when it comes to utility bills.

It is especially important that you read your tenancy agreement carefully to see what it says about energy and water bills. Sometimes all your bills are included, and your rent is the same however much you use. But some contracts set out how much energy and water are included in your rent. If you use more than the set amount, your landlord could ask you for more. This is called a 'fair usage clause'.

If a fair usage clause sets out a cash limit on what is covered, you might have to pay something towards your energy bills even if your usage has not increased. If you're asked to sign a new contract, check if any terms have changed. The new agreement might not have bills included.

It is important that you have open discussions with your housemates about energy usage to try and ensure you are on the same page when it comes to consumption. If one housemate is using a tumble dryer every day, for example, it could push the house past that threshold and unless you can resolve this between the household, the excess will fall on all tenants.

Your landlord must not charge you more than the energy or water company charge them. They should not make a profit from reselling utilities to you as a tenant.

 


 

Get in touch!

If you believe you have been overcharged you would need to contact your letting agent/landlord informing them of this. We can assist you with this and even give you a template letter, so please do contact us as an SU Advice Team. The best way to contact us is via our online enquiry form.

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