Commercial leases and electricity supply

Sha.Daly

Free Member
Oct 22, 2016
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1
I currently have a commercial lease on a unit. the landlord bills me for electricity usage. They have one main supply coming in and then split it themselves into separate meters for each unit. I get an invoice but have never seen a bill from a legit electricity supplier.
I have no control over the price per unit ( which is ridiculously high) is there anything I can do? or do I have to just suck it up until I find a new unit.
I called a commercial electricity supplier and my first quote was a third less per unit, some of my competitors pay less than that.. ( makes a massive difference to me as I am running large walk in freezers/fridges)
 

Sha.Daly

Free Member
Oct 22, 2016
11
1
I think I read somewhere a few months ago that landlords could only make a small charge on billing services for Gas and elec

Suggest you try ombudsman's site or similar
I do get a small admin charge but rate per unit is ridiculous, the more electricity the worse it gets. I am being charges .15p per unit, in one phone call I was quoted 10p per unit, my friends pay between 5 and 10p. My landlords dont seem interested in looking for a cheaper supply and I am unable to get a direct supply, the only mention in my lease is
" To pay for electricity services supplied to the Premises during the term of this Agreement and for business rates levied thereon."
 
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Psl

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May 4, 2010
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Manchester
I currently have a commercial lease on a unit. the landlord bills me for electricity usage. They have one main supply coming in and then split it themselves into separate meters for each unit. I get an invoice but have never seen a bill from a legit electricity supplier.
I have no control over the price per unit ( which is ridiculously high) is there anything I can do? or do I have to just suck it up until I find a new unit.
I called a commercial electricity supplier and my first quote was a third less per unit, some of my competitors pay less than that.. ( makes a massive difference to me as I am running large walk in freezers/fridges)

This is a problem that is faced by a number of small businesses renting space from landlords in multiple occupancy buildings where the landlord makes the energy charges. Understanding the overall supply arrangements with the whole building is the start point.

I am currently undertaking a project with a mill owner who rent out units in the mills to businesses and sub-meters the electricity and gas supplies to the tenants - a similar situation to you on the electricity supply. Although he doesn't overcharge on his sub-supply rate!

You have stated that you have a 'sub-meter' for your unit - do you record your data from this meter on a monthly basis? This will help you build up an energy profile of your use and ascertain your 'direct use'.

You also have to take into account any communal areas with lights and/or AC and lifts that require electricity in the building - are these areas with lights and/or AC units and lifts sub-metered? Who pays for the electricity to these areas - is it the landlord or is it pro-rata charged to all the tenants?

There will also be a standing charge, CCL and CRC (closing the end of 2018) and VAT will be applied to landlords supply bill and it will depend on how he views these charges? He may well simply pro-rata divide them across all tenants?

So, all in all, you would need to ask your landlord for a detailed breakdown of how they arrive at the charge per unit and what additional charges (as mentioned above), are included for each tenant.

On a positive note as you have large walk in freezers and fridges, you could enroll them very easily in Demand Side Response Services, and get paid from the National Grid for utilising your assets? It's one way of off-setting your high unit charge! If you're interested in finding out more, drop me a PM.

Any other help you need re your current problem, just ask and if I can help, I will.
 
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