Are Standing Charges on Utility Bills Legal for Renters in Wales?

As a renter in Wales, understanding your rights around utility bills, especially standing charges, can significantly impact your monthly expenses. This article explains if standing charges for electricity, gas, and water are legal in Wales, how they work, and what protections are in place for renters. We also guide you through the relevant regulations and what steps you can take if you think your charges are unfair or incorrect.

What Are Standing Charges on Utility Bills?

Standing charges are fixed daily fees added to most gas, electricity, and water bills in Wales. These cover the cost of providing and maintaining the supply, regardless of how much energy or water you actually use. The standing charge is paid in addition to the cost per unit of energy or water.

• Electricity and Gas: Set by your energy supplier; charged daily even if you use no energy.
• Water: Often included in your bill, covering water supply and wastewater services.

For many renters, especially in shared or furnished accommodation, these charges can feel confusing or unnecessary. However, they remain a standard feature in most utility billing across Wales.

Are Standing Charges Legal in Wales?

Yes, standing charges for utilities are legal throughout Wales, including for tenants. These charges are regulated and set by utility companies but must comply with rules overseen by the Office of Gas and Electricity Markets (Ofgem) for energy and Welsh Water for water. In rental situations, whether you are responsible for these charges depends on your tenancy agreement.

Key Facts for Renters in Wales

• Private renters: Check your tenancy agreement—standing charges may be your responsibility or the landlord’s, depending on how bills are set up.
• Council and housing association tenants: Utilities may be included in your rent or charged separately.
• Ofgem mandates that all standard electricity and gas tariffs can have standing charges but sets a cap on maximum levels as part of its price cap.
• For water, charges and any standing element are managed by the local supplier, like Dŵr Cymru Welsh Water.

Legal Protections and Your Rights

The law offers several protections to ensure standing charges are fair and transparent.

• Landlord and Tenant Act 1985 requires service charges (including utilities, if paid to the landlord) to be reasonable.
• Energy companies must follow Ofgem's retail market rules and guidance.
• Any charges included as part of your rent or a service charge must be clearly explained in your agreement.

Relevant Official Forms and How to Use Them

• Application to the Residential Property Tribunal Wales (Rent Repayment Orders) - RRO Form
  When to use: If you believe your landlord has charged you unlawful service charges, including utility-related fees.
  Example: If your tenancy agreement says all bills are included, but the landlord charges you extra for standing charges, you can apply to the tribunal.
  Official RRO Application Form (PDF)
• Service Charge Challenge Application - Form SC
  When to use: Raise a dispute about the reasonableness or breakdown of any service charge not covered by your tenancy agreement, including utility bills.
  Example: If you want to challenge the way your landlord has apportioned standing charges across tenants.
  Download Service Charge Challenge Form (see English or Welsh options)

How to Dispute Utility Standing Charges

If you think you are being charged incorrectly or unfairly for utilities, you have several options:

1. Review your tenancy agreement. Confirm what it says about bills and who is responsible.
2. Request a breakdown from your landlord or utility provider if you are unsure about the charges.
3. Contact Citizens Advice Cymru for guidance with disputes or unclear charges (Welsh Language).
4. Submit a complaint to Ofgem if the issue is with the energy supplier.
5. Apply to the Residential Property Tribunal Wales if your landlord ignores your concerns and you think the charges breach your rental agreement.

This process aims to resolve issues amicably but provides escalation routes if necessary.

Frequently Asked Questions (FAQs)

1. Can my landlord charge me separate standing charges for utilities?
   Yes, if your tenancy agreement states that you are responsible for utilities, or if bills are in your own name. If bills are included in your rent, your landlord should not add extra standing charges unless clearly detailed in your agreement.
2. Is there an official cap on standing charges in Wales?
   Ofgem sets a maximum level for standing charges as part of its price cap for domestic energy customers. Water companies also follow regulated tariffs, but there is no specific national cap for water standing charges.
3. Who do I contact if I think my standing charges are unfair?
   If your landlord is responsible, you should start by requesting a breakdown or contacting your local Citizens Advice. For supplier issues, contact Ofgem. Persistent disagreements on landlord charges may be taken to the Residential Property Tribunal Wales.
4. What if my tenancy agreement is unclear about bills?
   Request clarification from your landlord in writing. If you still have concerns, seek advice from Citizens Advice Cymru or contact the local council’s housing department.
5. Can standing charges be removed from my bill?
   Not usually. Most tariffs include standing charges, but you can shop around for suppliers with lower or zero standing charges. Your landlord cannot remove charges set by suppliers, but must be clear if they are included in your rent.

Key Takeaways for Welsh Renters

In summary:

• Standing charges on utilities are legal in Wales and are typically a standard part of gas, electricity, and water bills.
• Your responsibility for paying standing charges depends on your tenancy agreement. Always read it carefully.
• If you suspect unfair charges, challenge them using the available official forms and guidance.

Need Help? Resources for Renters

• Residential Property Tribunal Wales: Resolves tenancy and service charge disputes under Welsh law.
• Citizens Advice Cymru: Free advice for renters about bills and disputes.
• UK Government Renting Guidance: Overview of private renting rules in Wales.
• Ofgem – Standing Charges Explained: Up-to-date info on maximum standing charges and suppliers.
• Dŵr Cymru Welsh Water: Official water supply information for most of Wales.

---

1. Landlord and Tenant Act 1985
2. Residential Property Tribunal Wales
3. Ofgem: Standing Charges Guidance
4. Dŵr Cymru Welsh Water
5. Citizens Advice Cymru

Categories

Tenant Rights & Responsibilities Rent, Deposits & Increases Tenancy Types & Agreements Moving In & Out Procedures Repairs, Maintenance & Housing Standards Eviction Notices & Repossessions Shared Housing, HMOs & Lodgers Discrimination, Harassment & Accessibility Utilities, Bills & Council Tax Affordable Housing, Social Housing & Benefits Dispute Resolution & Housing Tribunals Health, Safety & Fire Regulations Privacy, Landlord Entry & Surveillance Unusual & Special Tenancy Situations Renters’ Insurance & Liability Homelessness Support & Post-Eviction Help Landlord Duties, Licensing & Penalties Housing Law, Legal Updates & Case Studies Mental Health, Disability & Vulnerable Renters’ Rights Rent Repayment Orders & Compensation