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The Water Resale Order 2006 provides that a park owner may only charge residents the cost to the park owner of the water and sewerage services (the pass-through cost) plus a limited administration charge.
The Order sets out in detail how the pass-through cost is to be calculated. The administration charge cannot exceed 2.5 pence per day per metered occupier, and 1.5 pence per day per unmetered occupier amounting to annual administration charges of £9.13 or £5.47 per occupier.
Terms requiring additional payments may not be enforced and residents who have overpaid may demand a refund plus interest.
The Order does not apply to units which are not occupied as the principal home, ie to holiday units, and it does not apply to maintenance costs.
As questions are regularly asked about administration charges for utility services we will be providing an overview in the next issue of our newsletter – parklaw.