Standing Charges for Utilities: What Renters Need to Know

If you’re renting a property in England, you might notice a fixed fee on your gas, electricity, or water bill called a “standing charge.” Many renters wonder if standing charges for utilities are legal and what their rights are when these fees appear. This article explains the regulations around standing charges for utilities in England, how they work, and what steps renters can take if they think they’re being charged unfairly.

What Is a Standing Charge?

A standing charge is a fixed daily amount that utility companies add to bills for services like gas, electricity, or water, regardless of how much you use. This charge covers the cost of keeping your property connected to the network and maintaining infrastructure.

• Common on gas, electricity, and some water bills
• Usually displayed as a separate line on your bill
• Applies even if you don’t use any energy or water during a period

Are Standing Charges for Utilities Legal in England?

Yes, standing charges are legal in England. They are regulated by Ofgem (the Office of Gas and Electricity Markets) for gas and electricity supplies, and by Ofwat for water services. Utility providers set their standing charges, but these must comply with price cap regulations and transparent billing rules.

• Most residential energy tariffs have a standing charge
• Utility companies must display standing charges clearly on bills and tariffs
• Standing charges help cover fixed costs, regardless of usage

Rental agreements may handle utility billing in different ways. If the tenancy is “all bills included,” the landlord is responsible for paying standing charges. If you pay providers directly, you will pay these charges yourself.

What Do the Law and Regulation Say?

The principal legislation covering utilities and billing for renters is the Landlord and Tenant Act 1985. This act ensures that charges for utilities must be reasonable and clearly explained in the tenancy agreement.¹ For electricity and gas, Ofgem regulates billing and consumer protections (Ofgem – energy regulator), while Ofwat covers water charges (Ofwat – water services).

How Do Standing Charges Affect Renters?

Whether you pay utility suppliers directly or the landlord manages them, standing charges can impact your budget. Here’s how:

• If you move in or out, you’ll generally pay standing charges for days you were responsible for the property.
• If your tenancy includes utility bills, ask your landlord to specify what standing charges are covered.
• Prepayment meters usually include standing charges, meaning you could go into debt even if you’re not using energy.

Action Steps: If You Think Utility Charges Are Unfair

If you feel you’re being overcharged for utilities:

• Check your tenancy agreement for details on how utilities are billed.
• Request a bill breakdown from your landlord or supplier.
• Contact your utility provider to confirm tariff and standing charge amounts.
• Seek help from Citizens Advice (Citizens Advice: Energy supply), which provides free guidance for renters.

Disputing Utility Charges: Official Forms

Depending on your situation, you may need to use official forms:

• Form N1 – Claim Form: Used if you need to take your landlord to County Court to recover overpaid utility charges. Example: If your landlord charges you more than what was paid to the utility supplier and doesn’t resolve your complaint after you’ve asked in writing. Form N1 (Claim Form)
• Energy Ombudsman Complaint Form: If your complaint is about the utility supplier, you can escalate it to the Energy Ombudsman after following the provider’s complaint process. Energy Ombudsman energy complaint process

Before taking court action, consider using free dispute resolution or mediation services.

Which Tribunal Handles Utility and Tenancy Disputes?

Residential tenancy disputes in England are handled by the First-tier Tribunal (Property Chamber). They cover certain rent, service charge and leasehold disputes, but general utility billing issues may be handled by county courts or consumer ombudsmen.

FAQ

1. Are landlords allowed to make a profit on utility standing charges?
   Landlords cannot legally profit from charging tenants for utilities beyond the actual costs; any markup could breach the Landlord and Tenant Act 1985.¹
2. Can I get a refund if I was charged standing charges after moving out?
   You are usually liable for standing charges only for the days you were responsible for the utility account. Contact the supplier (or your landlord if they pay the bills) for a possible refund.
3. What should I do if my landlord won’t show me the utility bills?
   Ask for copies in writing, referencing your right to reasonable information under the Landlord and Tenant Act. If refused, seek advice from Citizens Advice or consider formal complaint routes.
4. Do all utility suppliers in England charge standing charges?
   Most do, but some tariffs with “no standing charge” exist. Compare suppliers on the government's energy price comparison tool.
5. Who sets the maximum amount for standing charges?
   Ofgem regulates the price cap for standard and default tariffs, which includes the maximum daily standing charge allowed for gas and electricity.

Conclusion

• Standing charges for utilities are legal, regulated, and usually unavoidable for renters in England.
• Your landlord cannot profit on utility charges, and you’re entitled to clear information about bills.
• If you have concerns, ask for a bill breakdown and know where to seek advice or escalate complaints.

Need Help? Resources for Renters

• Citizens Advice: Housing – Support for renters on utility bills and tenancy rights
• Gov.uk: Private Renting – Official guide to tenant and landlord responsibilities
• First-tier Tribunal (Property Chamber) – Dispute resolution for tenancy and service charge issues
• Ofgem: Consumer Information – Rules and rights for energy consumers
• Ofwat: Water Watchdog – Guidance for water and sewerage customers

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1. Landlord and Tenant Act 1985 (see sections 19 and 21)

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