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Posted 4 July 2014
The impact of rising utility bills on holiday and home park owners
Recently the Government has proposed plans to fund £375 billion of planned infrastructure through consumer utility bills. In a recent report the Committee of Public Accounts (“the committee”) have considered the impact this will have on the cost of consumer bills.
The committee found that in the last decade energy bills have risen by 44% and water bills by 22% in real terms and have estimated that this will continue to increase year on year. These increases are likely to have a significant impact on park owners who include utility charges in the pitch fee.
Where the utility bills are included within the pitch fee, park owners may be subject to the presumption of only increasing the pitch fee by RPI which in most cases will not cover the increases in energy and water/sewerage bills. Inevitably where an overhead runs ahead of RPI the amount of the pitch fee available to the park owner reduces over time.
Park owners should consider following the legal process to attempt to remove the utility costs from the pitch fee in order to be able to increase the utility costs to reflect market prices. We have done this successfully for a number of parks and the long-term importance of doing this is high.
If you have any questions regarding utility bills please contact the parks team by telephone on 01392 207020 or email firstname.lastname@example.org