Tenant has huge unpaid electric bill before defaulting lease. Is landlord liable?

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    Tenant has huge unpaid electric bill before defaulting lease. Is landlord liable?

    My shop tenant of 16 years (Proper lease signed etc.) has built up a bill (approaching £8000!) having allegedly fiddled the electricity meter over a long period. The meter has now been removed by the utility company leaving the shop without power.
    They offered to let him pay £500 P/M, but his lease has now been revoked so who is responsible for the arrears if he does not or cannot pay?

    #2
    Dear turbinac,

    The answer to your question is likely to depend upon the party with whom the utility company entered into a contract with and the precise terms of that contract.

    For example, you may have entered into the contract with the utility company whereby you agreed to pay all utility bills and then you may have subsequently imposed an obligation on your tenant to (a) indemnify you against the amount of the utility bills you are liable to pay or (b) pay the utility company directly.

    I hope this is of some assistance.

    Richard Moss

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