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Insights

Electricity and Gas- What can you charge?

Posted on 25th October 2014 in Parks

Posted by

Melanie Burton

Partner and Chartered Legal Executive
Electricity and Gas- What can you charge?

The resale of electricity and gas is subject to a maximum resale price which is set by Ofgem. Since 1 January 2003 the maximum price at which electricity and gas can be resold is the same price as the reseller was charged by the supplier, including any standing charges.

The maximum resale price applies to anyone who resells electricity and gas for domestic use. This includes both residential and holiday parks.  However it will not apply where an inclusive charge is made for accommodation with no specified charge for electricity or gas.

The maximum price will also not apply to the resale of liquefied petroleum gas (LPG) either in cylinders or through bulk tank systems.

The method for calculation of the bills is dependent upon whether or not individual meters are installed on the park.

Where individual meters are installed the reseller will be expected to charge according to the consumption on the meter and the unit prices on his own bill.

Where there are no meters the reseller will have to make reasonable endeavours to estimate what proportion of the total bill each purchaser should pay.  There are no hard and fast rules as to what methodology should be used to estimate but the reseller must ensure that they are able to explain how the bill was calculated if requested by the purchaser.

Any standing charges the suppliers make can be recovered in the electricity and gas bill and must be done so on a pro rata basis according to the amount of energy used by each.

Any costs which the reseller incurs due to administering his own contracts or maintaining his property must not be recovered within the electricity or gas bill. The reseller would need to recover this through a separate charge which the purchaser must have agreed to.

If you have any queries relating to the maximum resale price of electricity and gas contact the parks team on telephone 01392  207020 or by email parks@tozers.co.uk

 

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