Thread by @LiamSpender

1/12 The government has made regulations capping prices for #leasehold / park home communal gas and electricity supplies and heating networks.

The caps are 21p per unit of electricity and 7.5p per unit of gas, excluding VAT and Climate Change Levy.

2/12 These prices differ from those applied under the Energy Price Guarantee for domestic supplies.

That is because communal supplies (lifts, corridor lighting, car parks) to blocks of flats and park homes are deemed to be commercial.

3/12 The government is yet to do anything to reclassify these communal supplies as domestic.

That means managing agents and energy brokers can continue to earn commission on these contracts.

leaseholdknowledge.com/rendall-rittne…

4/12 Unfortunately, even with the new caps, depending on the deal struck between landlord / managing agent and supplier, gas and electricity prices are still likely to increase substantially.

Energy prices are significantly higher than they were last year.

5/12 Discounts will be given by the government to energy suppliers and applied automatically to bills with effect from 1 October 2022 (and they are backdated).

Scheme runs until 31 March 2022.

Discount varies depending on the type of contract and is subject to a floor price.

6/12 What happens after 31 March 2022 will depend on what the government decides to do about continued energy support generally.

At the very least, the government should act to reclassify communal supplies as domestic supplies.

7/12 Leaseholders pay for communal gas and electricity through service charges.

Landlords are classed as "intermediaries" under the new regs.

They have a legal duty to pass on the savings as soon as possible.

Regulations setting out legal duty here: legislation.gov.uk/uksi/2022/1103…

8/12 The same applies to heat networks.

Where leaseholders are billed directly, the discount should be applied to the bill.

Where landlords are billed and pass on costs, service charges should be discounted.

Regs here: legislation.gov.uk/uksi/2022/1101…

9/12 The Energy Ombudsman is being given power to handle complaints about intermediaries who fail to pass on the discounts received.

10/12 Service charge budgets are usually set in advance.

I have seen examples of huge increases being put into budgets and then filtered into demands for payment on account.

This should not be happening. The energy discount is certain because it is guaranteed by the taxpayer.

11/12 Service charge demands and budgets should therefore factor in the discount for at least 1 October 2022 to 31 March 2023.

The government should start making examples of landlords and managing agents who are not following the new rules.

12/12 There are six statutory instruments (SIs 2022/1000 to 1006). The main regulations are here: legislation.gov.uk/uksi/2022/1100…

The Scheme Rules and other information are here: gov.uk/guidance/energ…