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I rent my property, how will the Energy Price Guarantee affect me?

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UPDATED October 17 2022

If you rent your home, you might be wondering how the latest energy price cap, known as the Energy Price Guarantee, may affect you. 

Following the news from October 17 2022, the Energy Price Guarantee will likely end its current form in April 2023

In this article:

What is the Energy Price Guarantee?

The Energy Price Guarantee limits the amount that energy suppliers can charge you per unit of energy you use. Additionally, the government has also promised a payment of £400 for every home under an initiative called the ‘Energy Bills Support Scheme’. This payment which will be automatically applied to energy bills. For more information on this, please read our other post.

What does the Energy Price Guarantee mean for renters?

The answer will depend upon the terms of your tenancy agreement. There are three possibilities: 

  1. Your landlord charges you based on how much energy you use

Your landlord may charge you a variable amount depending on your energy usage. Under this arrangement, they cannot legally charge you for more than the cost of the energy you use. And remember, they can only pass on energy costs if you have agreed to do this within the terms of your tenancy agreement. 

This situation means that any advantage your landlord gains from the £400 grant, or the limit on unit rates, must be passed on to you. 

Your home may have its own meter (or sub-meter if you’re in a shared house). If you believe you are being overcharged by your landlord, you should write to your landlord asking for a copy of the energy bill for your meter. 

  1. Your landlord charges rent on a bills-inclusive basis

Your landlord may include the cost of your energy within your rent. If your landlord charges you a standard fee for rent that includes bills, it has been announced that they must pass down the £400 payment to you, although any benefit from a reduction in unit rates under the Energy Price Guarantee will be theirs to keep.

Because your landlord is facing higher energy costs, you may find that they intend to increase your rent. If so, there are certain regulations that they must follow. For example, there may be restrictions on when they can increase the rent, how frequently they can increase the rent, or how much they can increase it by. See here for more details.

  1. You pay your own energy bills

If you pay your energy supplier directly, you are entitled to the full benefit from the Energy Price Guarantee and the £400 Energy Bills Support Scheme grant. For more information, refer to our main guide on the Energy Price Guarantee (new post) household bills.

Will my landlord let me switch supplier?

If you pay your own energy bill, you can switch at any time. During the Energy Price Guarantee period, however, it may be best to stick with your current supplier. 

If your landlord pays your energy bill, it is ultimately up to them to choose a supplier. It’s possible that, for whatever reason, you think you are paying too much, you’ve seen some bad press about the supplier, or you simply want to have a greener supply. In this instance, you should dive into some research to see what deals are available, and approach your landlord with an alternative option. You may find that they have always gone with the first option presented to them and not thought about the tariff they put you on at all. They may also say no, but if you don’t ask, you don’t get! 

If your renting situation is a bit more complicated, and you still want to switch suppliers, take a look at our other guide on switching while renting. 

I am a landlord, and my property is on a commercial tariff, what do I do?

If you pay for your tenants’ energy bill through a non-domestic contract, then you will benefit from the Energy Bill Relief Scheme. This Energy Bill Relief Scheme will have a separate price cap on gas and electricity unit rates. More information can be found here. (chane to BCS blog on it)

For help securing the most competitive rates, please contact our business energy team