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Commercial Landlord Overcharging for Electricity – How to Check and Challenge It

How electricity recharges work in commercial premises, how to check yours, and what to do if you're paying too much.

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Commercial Property & Office Space
Commercial Landlord Overcharging for Electricity – How to Check and Challenge It Commercial Property & Office Space

Updated October 2026 · Fraser Bond

Commercial tenants

Paying your landlord for electricity? Make sure you're only paying for what you use

Leasesets the rules
Sub-meterevidence matters
Unit ratecompare the market
Service chargecheck apportionment
In short: Where a commercial landlord supplies electricity and recharges you, the lease (and any service charge provisions) decides what they can charge. Recharges should normally reflect actual consumption from a sub-meter, at a fair unit rate, or a reasonable share of a common supply. Ask for meter readings, the landlord's supply invoices and the calculation, and compare the effective rate with what you'd pay a supplier directly.

How landlords usually recharge electricity

MethodHow it worksWhat to check
Sub-metered rechargeLandlord reads your sub-meter and bills youMeter accuracy, reading dates, unit rate applied
Apportionment by floor areaCommon supply split by sizeFair basis? Are vacant units included?
Through the service chargeCommon parts electricity shared by all tenantsBudget vs actual, reconciliation, admin fee
Fixed sum in the rentElectricity includedNo separate charge should be added
Recharge checker: is your bill reasonable?
What you're being charged–
At the comparison rate–
Difference this period–
Difference over a year–
Effective rate you pay–

The comparison assumes a standing charge of about 60p a day. Get real quotes for your meter and usage. Effective rate is shown in pence per kWh.

How to challenge an electricity recharge

1
Read the leaseFind the clauses on utilities and service charges: what can be charged, how, and any cap.
2
Request evidenceAsk for meter readings, the landlord's supply invoices and how your charge was calculated.
3
CompareUse the checker above and supplier quotes to compare the effective rate.
4
Raise it in writingExplain the issue, attach your figures and propose a correction or refund.
5
EscalateUse the lease dispute mechanism, mediation, or take advice from a surveyor or solicitor.

Evidence to gather

Frequently asked questions

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Can a commercial landlord make a profit on electricity?

It depends on the lease. Many leases only allow recovery of the cost; others are silent. Profit margins are often challengeable if the lease limits recovery to cost.

Do Ofgem resale rules apply to businesses?

Ofgem's maximum resale price rules mainly protect domestic resale. Commercial recharges are mostly governed by the lease.

Can I get my own supply?

Sometimes. Ask whether you can have a direct supply and meter; landlord consent and works may be needed.

Overpaying on your commercial premises?

Our commercial team can review your lease, service charges and recharges.

Speak to our team

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