What is a utility bill?
A utility bill is a request for payment for essential services supplied to a home. This usually includes electricity, gas, and water. It can also include things like broadband or landline telephone services.
Who is liable for utilities?
If you own a property that you currently occupy, or own a property that is currently empty, you will be responsible for any bills or charges that may apply.
Where your property is rented out to a tenant, the Tenancy agreement should make it clear who will be responsible for payments (this may include measures such as changing the name on bills or receiving payments directly from tenants).
Anyone who puts their name(s) on a utility bill will ultimately be responsible for any outstanding charges. Multiple names on a bill will place responsibility on all those named on the bill if payment is not fulfilled, regardless of whether one pays their part while another does not.
Utility bills in rented accommodation
When a property is let to tenants, clear rules determine who must manage the accounts and how costs are passed from a landlord to a tenant. These responsibilities begin from the first day of the tenancy and vary depending on whether the landlord manages the utilities or the tenant deals with the providers directly.
Tenant move-in and move-out duties
Tenants need to notify providers of move-in dates and meter readings. Where tenants are liable for utility payments, they are responsible from the start date of the tenancy until the end of the tenancy. Tenants are not responsible for any previous charges or arrears.
Who is responsible for utility bills if the tenant leaves early depends on how they left the property.
Where the tenant surrenders the tenancy (where all parties to a tenancy voluntarily agree to bring the tenancy to an end), and the landlord accepts this surrender, the tenant will usually only be liable for bills until the landlord has accepted the surrender. For more information, read Surrendering a tenancy.
Where the tenant moves out early (eg they 'abandon' their tenancy), the tenant will usually remain liable for bills until the tenancy is brought to an end correctly. For more information, read Tenant abandonment.
If there is a void period during which the property has no tenant (because the original tenancy was correctly terminated and no new tenant has moved in), the landlord becomes responsible for all utility bills. Such bills should typically be in the landlord's name during this time.
What are the rules for reselling utilities and other bills?
A landlord cannot make a profit from reselling gas, electricity, or water. Landlords can only charge tenants the amount they actually paid to the supplier.
In England, the Tenant Fees Act 2019 strictly prohibits landlords from requiring separate payments for council tax or TV licences directly to them. These must either be included in the rent or paid by the tenant directly to the authority.
In Wales, under the Renting Homes (Wales) Act 2016, a landlord can require a tenant (known as a ‘contract holder’) to pay for utilities, council tax, and TV licences. These are considered 'permitted payments' and can be handled as separate charges if the occupation contract allows it.
In Scotland, under the Private Housing (Tenancies) (Scotland) Act 2016, landlords must follow the UK-wide no profit rule for energy and water. However, there aren’t strict prohibited payment categories, and so any charges for council tax or TV licences must be clearly agreed upon in the private residential tenancy agreement
Challenging a bill
If you think a utility bill is too high or too low, you should, in the first instance, contact the utility provider and state your reasons and attach any evidence you can provide.
You should check the utility provider’s internal complaints procedure (you should be able to find how to do this on their website). If you’re not satisfied, you can ask to speak to a senior manager.
You could also make an official complaint via the utility provider’s official complaints procedure. It is best to make a complaint in writing (via email or letter). Make sure you keep a copy of anything you send, in case you need to check it later.
Give the utility provider reasonable time to address your complaint and resolve the issue (eg 14 days).
If your issue relates to your energy provider, you may be able to take your case further and complain to the Energy Ombudsman.
If your issue relates to your water provider, you may be able to complain or seek help from the Consumer Council for Water (CCWater). The CCWater is an independent body for consumers and businesses for issues related to water and sewerage.
Back-billing of utility bills
A back-bill is a ‘catch-up’ bill sent to you by your energy or water supplier when you haven’t been correctly charged for your energy use. Back-bills can be for any amount; however, note that your supplier can charge you only up to 12 months back.
What happens if I don’t pay my utility bill?
If you’re struggling to afford your gas and electricity bills, you should contact your supplier to discuss ways to pay what you owe them. You may be able to agree a payment plan with them.
If you haven’t paid a bill after 28 days, your supplier may contact you about the possibility of disconnecting your gas or electricity supply. Your supplier must give you a chance to pay your debt through a payment plan before they disconnect you.
Suppliers aren’t allowed to disconnect you between 1 October and 31 March if you’re:
-
a pensioner living alone
-
a pensioner living with children under five
The larger suppliers have signed up to an agreement to make sure you won’t be disconnected at any time of year if you have:
-
a disability
-
long-term health problems
-
severe financial problems
-
young children living at home
Ask a lawyer if you have any questions or concerns about utility bills or how to address them in a tenancy.
