Are Standing Charges for Utilities Legal for Renters in Scotland?

If you’re renting in Scotland, you may have seen fees called ‘standing charges’ on your gas, electricity, or water bills. This article explains what these charges are, whether they’re legal, and what your rights are as a tenant under Scottish law. Understanding utility costs is important, especially if you are on a fixed income or facing changes in your tenancy.

What Are Standing Charges?

Standing charges are fixed daily amounts set by utility providers for services like gas and electricity. These charges cover the cost of maintaining the network and supplying energy to your property, regardless of how much you use. They are usually listed separately on your utility bill, in addition to charges for actual usage.

Are Standing Charges Legal in Scotland?

Yes, standing charges for utilities are legal in Scotland. Energy suppliers are permitted to include these charges as part of their pricing structures for both domestic and rental properties. The Office of Gas and Electricity Markets (Ofgem) regulates and oversees the application of standing charges across the UK, including Scotland.^[1]

• Standing charges apply no matter who pays the bills (tenant or landlord).
• Landlords may include utility costs in your rent or ask you to set up your own accounts.

How Are Standing Charges Decided?

Each supplier sets their own standing charge amounts, but they must comply with regulations overseen by Ofgem. These amounts must be clearly stated on your tariff and billing statements.

Cases Where Standing Charges Might Not Apply

• If your rent is ‘all inclusive’ (utilities included), the landlord pays standing charges.
• If your property is individually metered and you hold the account, you pay the standing charge directly.
• If a landlord uses a prepayment meter, standing charges still usually apply, even if there’s no energy use.

Your Rights as a Renter: Utility Charges and Your Tenancy

Scottish renters’ utility rights are protected under the Private Housing (Tenancies) (Scotland) Act 2016.^[2] If your tenancy agreement says you are responsible for utility payments, you should receive bills in your name and have the right to choose your supplier.

• Landlords must not overcharge (‘resell’) energy above the amount charged by the supplier.
• Utility charges must be clear and based on actual bills or pre-agreed, fixed costs in your tenancy.
• If you believe your landlord is charging excessive fees, you can challenge these via the First-tier Tribunal for Scotland (Housing and Property Chamber).^[3]

What If You Disagree with a Utility Charge?

If you suspect you’re being charged unfairly, you have the right to request itemised statements or contact your utility supplier directly. In Scotland, you can make a formal application to the tribunal to resolve disputes.

• Form G: Application to the First-tier Tribunal for Scotland (Housing and Property Chamber)

When and how to use it: If you want to challenge a landlord about how utility bills or standing charges are calculated, you can submit Form G to the tribunal. For example, if your landlord adds a ‘service charge’ above the actual standing charge, you can apply to have it reviewed. Download Form G from the official tribunal.

FAQ: Standing Charges for Utilities in Scotland

1. Can my landlord include a standing charge as a separate fee?
   Generally, landlords should only pass on actual utility costs as billed by the supplier. Extra charges must be clearly stated in your tenancy agreement and cannot be above the supply cost. You can ask for receipts or statements if you are unsure.
2. Do I have to pay standing charges if I’m not using any gas or electricity?
   Yes, standing charges usually apply even if you do not use any energy. They cover the cost of keeping your property connected to the energy network.
3. What should I do if I think I’m being overcharged for utilities?
   Start by asking your landlord or supplier for a breakdown of charges. If the issue isn’t resolved, you can apply to the First-tier Tribunal for Scotland to challenge the fees using Form G.
4. Can I change utility suppliers as a tenant?
   If you pay the supplier directly and the bill is in your name, you generally have the right to switch suppliers. If your landlord pays and recharges you, discuss options with them first.
5. How do I contact the official tribunal for tenancy issues?
   You can contact the First-tier Tribunal for Scotland (Housing and Property Chamber) through their website or by phone.

Conclusion: Key Takeaways for Renters

• Standing charges for utilities are legal and regulated in Scotland.
• Your rights as a renter include transparency and protection from overcharging.
• If you believe your landlord is charging unfairly, you can challenge this with the tribunal.

Review your tenancy agreement and seek official advice if you are ever unsure about your utility responsibilities or charges.

Need Help? Resources for Renters

• Renting and your rights – mygov.scot
• First-tier Tribunal for Scotland (Housing and Property Chamber) – for utility or tenancy disputes
• Ofgem – Energy advice for households
• Citizens Advice Scotland: Paying your bills as a tenant

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1. See Ofgem’s official guidance: Ofgem – Energy Standing Charges
2. Private Housing (Tenancies) (Scotland) Act 2016
3. First-tier Tribunal for Scotland (Housing and Property Chamber)

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