Multiple standing charges

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    Multiple standing charges

    Hello, I own a building which is sub-divided into ten flats. There is one main electricity meter, which Scottish Power takes a reading from.

    Each flat has it's own sub-meter, paid for and maintained by myself (including billing and all the administration that entails) and nothing to do with the energy companies - in fact, I asked them to put their own meters in and charge the tenants directly, but they refused unless the entire building was rewired to their specifications with my money.

    Anyway, Scottish Power are charging 10 service charges, even though there is one bill, one main meter, etc. I was wondering if this is legal? I am comparing it to unlawful bank charges, in that the amount they are charging (10 x service charges) does not reflect the true cost to them (one meter, one meter reading, etc).

    I would appreciate any thoughts on this.

    Thanks in advance,

    Rebecca

    #2
    How come SP are even "aware" that there are 10 flats, if you installed all the submeters? Sounds a bit odd - and does maybe one part of the organisation not know what the other is doing?

    But apart from that, the answer is very simple - get them to put you on a "no-standing-charge" tariff: it's far easier for admin purposes when you're letting. Power is charged for simply from the meter readings with no consideration needed for dates of occupancy.

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      #3
      Thanks for your reply, Eric. My father bought the building back in the sixties, and my mother says the standing charges have been in place since then. He passed away recently so I actually don't know how Scottish Power know about the 10 flats.

      The sub-meters have been in place for 40 years, and I am now switching them to their modern equivalent which involves me billing the tenants (they used to be coin-operated) which is why it has come to my attention. Along with other properties, we are paying around £1000 per year in standing charges alone, for just 3 main electricity supplies, so I am keen to get it changed.

      Does the 'no standing-charge' tariff involve a more expensive unit rate?

      Comment


        #4
        Originally posted by reb223 View Post
        Does the 'no standing-charge' tariff involve a more expensive unit rate?
        Well, obviously it's not simply a case of scrapping the standing charge and continuing to pay the same unit rate! I think it works out that an average user pays roughly the same total amount using either tariff; if you use less lecky than average, then your total bill would be less, if you use more lecky than the bill would be more (did I get that right way round)? You'll find all the info at http://www.scottishpower.co.uk/Home_...mestic_Prices/

        So is your problem that you've been covering the standing charges yourself up till now, so it wold be awkward to give your tenants a big hike?

        I could be wrong but I think most suppliers these days have done away with standing charges anyway, haven't they? Certainly my own supplier, Atlantic don't even offer the option. Scottish Power certainly aren't the cheapest option these days so maybe you should just go to www.uswitch.com and change supplier anyway!
        Last edited by Ericthelobster; 30-03-2007, 18:58 PM. Reason: typo

        Comment


          #5
          Originally posted by Ericthelobster View Post
          So is your problem that you've been covering the standing charges yourself up till now, so it wold be awkward to give your tenants a big hike?
          Actually, the coin-operated meters haven't been calibrated in at least 10 years, probably more, so I suspect there will be a big hike even without the standing charges.

          To update: I have spoken to Scottish Power and apparently it is a historical 'metered landlord supply' that has been in agreement for decades. They say we are still on 1999 prices with that supply tariff. They gave me the option to change to 'main domestic supply' with one standing charge, but it would work out more expensive.

          So I think i'm going to follow advice and switch suppliers. Sadly, loyalty gets you nowhere these days.

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