Your room in a shared house comes with a weekly energy charge on top of the rent. It has gone up twice, and when you asked why, the landlord said prices had risen. Or you top up a card for a meter the landlord controls, and the rate on it looks nothing like the bills your friends pay. You can't switch supplier, and you have no idea what the landlord is paying.
The rule here is simple. If your landlord buys gas or electricity from a supplier and sells it on to you, they cannot make a profit on it. Anything you paid above what they paid in the last 6 years is yours to claim back, and you may also get interest.
Can a landlord charge you more for electricity than they pay?
No. Ofgem sets a limit on the price of resold energy, called the maximum resale price, using its powers under section 44 of the Electricity Act 1989 and section 37 of the Gas Act 1986. Since 1 January 2003, that limit for energy you use at home has been the price the landlord paid the supplier, including standing charges. In plain terms, the landlord passes the bill on at cost.
It applies wherever a landlord holds the supply and resells it for domestic use. That takes in HMOs and bedsits, student accommodation, and flats with a landlord-controlled sub-meter or token meter. Ofgem's guidance on the maximum resale price sets out how the bill has to be shared:
- If you have your own meter, you pay for the units it records at the landlord's own unit rates.
- If you don't, the landlord must make a reasonable estimate of your share, for example by floor space, and explain the method if you ask.
- The standing charge "must be divided pro-rata amongst the purchasers" in line with the energy each one used, or is estimated to have used. A landlord on the same meter pays their own share.
- Hallways, stairs and other shared areas can't be folded into your unit price. Ofgem says energy used there must be billed separately.
Ofgem opened its first substantive review since 2001 in October 2025, and it closed that December. Ofgem had not published an outcome when we last checked on 29 September 2026, and it has said it would consult again before changing the rule, so the current rule still applies.
Bills-included rent falls outside the maximum resale price
The maximum resale price only applies where energy is charged for separately. If your rent is one all-inclusive figure and the tenancy names no separate charge for gas or electricity, the maximum resale price does not apply. A sharp rise in all-inclusive rent is a question about the rent increase itself.
It also covers only domestic use, so in a flat above a shop it covers only the energy you use at home. It does not cover electricity sold through a dedicated electric vehicle charge point, which Ofgem excluded in 2014, or bottled or bulk-tank LPG.
Can a landlord add sub-meter or billing charges to energy bills?
Fees for billing, for maintaining the landlord's own on-site network and for maintaining sub-meters are not part of the maximum resale price, according to Ofgem's 2025 review document. Ofgem says a landlord can recover these costs another way, such as through the rent or a service charge, but not by adding them to the unit rate. A unit rate padded with admin costs is still an overcharge.
In England, the Tenant Fees Act 2019 lists a utility payment your tenancy requires as a permitted payment, so the fee ban won't help with the energy charge. Wales has a matching rule for utility payments an occupation contract requires. The maximum resale price is the rule that controls the price.
How to check if a landlord is overcharging for electricity or gas
Start by asking in writing for three things:
- The supplier bills for the period you were charged, showing the unit rate and the standing charge.
- Your usage, either the readings from your sub-meter or the method used to estimate your share.
- How the standing charge was split between the tenants, and the landlord if they share the meter.
Ofgem's direction, the binding order that sets the maximum resale price, says a landlord who resells energy must show you what they paid, with documentary evidence, when asked. Then multiply your units by the landlord's unit rate, add your share of the standing charge, and compare the total with what you paid.
Estimates are allowed, but they have to be settled up. Ofgem's guidance says that when the real bills show a tenant was overcharged by more than £5 in a year, the landlord must make reasonable efforts to refund the whole overcharge. The £5 is scaled down for a shorter supply, such as £2.50 for 6 months. It cuts both ways, and if the estimates were too low the landlord can ask you for the difference.
A unit rate above Ofgem's energy price cap is not proof of overcharging on its own. A landlord on a business contract is not covered by the energy price cap, so their unit rate can be higher. Ofgem's guidance does say the VAT passed on to you should be the lower domestic rate. The test is what the landlord paid.
How to claim back an electricity overcharge from a landlord
Under section 44(4) of the Electricity Act and section 37(4) of the Gas Act, you can recover anything you paid above the maximum resale price. If the court orders repayment, Ofgem's guidance says interest may also be payable, at twice the average Barclays Bank base rate for the period you were overcharged. Put simply, you have a direct money claim against the landlord.
- Send a written demand. Set out what you paid, what you should have paid, how you worked it out, and the Acts that apply. Give a deadline, such as 14 days. A letter before action is the standard way to do this before going to court.
- Make a County Court money claim if the landlord doesn't pay. You can claim online through GOV.UK, and a claim worth £10,000 or less normally goes to the small claims track. Check the current court fees on GOV.UK before you file.
Watch the time limit. Under section 9 of the Limitation Act 1980, a sum recoverable under an Act must be claimed within 6 years. Each overcharge has its own clock, so the oldest ones drop out first.
Your claim under the Electricity Act or Gas Act goes to the County Court, not the First-tier Tribunal. Ofgem is not a route either. Its review document says the law gives it no power to enforce the maximum resale price and that it is generally not set up to deal with individual complaints.
Keep paying while you dispute the figures. Falling behind on money your tenancy requires gives the landlord a debt claim against you.
If your landlord's energy charges don't add up, Remedy can work out the overcharge from the supplier bills, draft the demand, and prepare the court claim if they won't pay.
