Commercial landlord energy
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How to save money on commercial landlord energy bills
Many commercial landlords let their tenants choose their own business energy supplier. However, if your tenant moves out, you're responsible for the energy bill until a new tenant moves in. Some landlords also include energy in the service charge. It's crucial to secure the best deal. That's where we come in.
Fixed vs. variable energy tariffs for commercial landlord companies
Commercial properties come in all different sizes and energy uses. The best energy contract will depend on whether you're planning on charging your tenants for energy as a service charge or letting them pick their own contract.
| Plan | Benefits | Could be right if... |
|---|---|---|
| Fixed Price Energy Plans | Security that your prices will stay the same for the length of your contract. | You are going to charge your tenants for energy as a service charge. |
| 30 day Rolling Energy Plan | Freedom to switch with just 30 days written notice. | Your property is vacant short term.
You are going to let your commercial property and allow your tenant to choose their own supplier. |
If you're going to re-charge your tenant
For ease, some commercial landlords include energy in their tenants lease, and charge tenants for the energy they use. In buildings where there are multiple units and tenants you could charge your tenants based on the floor space they occupy.
- The Institute of Chartered Accounts in England and Wales (ICAEW) publish service charge guidelines you can follow
- RICS publish a code of practice which gives guidance on charging your commercial tenants service charges, including energy
Handling changes of tenancy
If your tenants are responsible for their own energy contracts, they'll need to settle any outstanding bills. You'll then become responsible for paying the energy bill. If you've not agreed a new contract with the energy supply, you'll likely be charged deemed rates.
If you're paying deemed rates, and with us, you can move to a cheaper business energy price plan by contacting our business movers team. If you're with another supplier, then say goodbye to deemed rates and get a quote from us.
When a new tenant moves in, they need to send a change of tenancy notification to the existing supplier. If that's us, then they can do this quickly online.
Key responsibilities for commercial landlords
As a commercial landlord, you have a crucial role in creating spaces that are both functional and safe for your tenants. Understanding your responsibilities can help everything run smoothly.
Electricity, gas, and water supply
Ensure that all essential utilities like electrical wiring, gas piping, and water systems are safe and working properly before a tenant moves in. If the lease includes appliances such as boilers or cookers, you might be responsible for their maintenance unless the agreement states otherwise.
Fire safety
Fire safety duties depend on the lease and may fall to you or the tenant. If you're responsible, you must maintain fire alarms, emergency lighting, and ensure that evacuation routes are clearly marked and accessible. This government guide outlines responsibilities for fire safety in the workplace.
Fixtures and fittings
Any fixtures or fittings you provide must meet safety standards and be properly tested. If tenants install their own equipment, they usually take on responsibility for maintaining these.
Asbestos management
Before leasing a property, check for asbestos and carry out a risk assessment. While removal isn't always necessary, it's essential to keep clear records and stay compliant with regulations.
Do I need an EPC as a commercial landlord?
An Energy Performance Certificate (EPC) is required for commercial landlords. This document rates the energy efficiency of a property on a scale from A (most efficient) to G (least efficient).
- From April 1, 2018, properties must have at least an E rating for all new leases and renewals
- From April 1, 2023, this requirement extended to all leases, regardless of the lease's start date
- By 2025, properties will need a minimum rating of D, and by 2030, this will rise to C
Frequently asked questions about Commercial landlord energy
What's a commercial property?
Commercial properties differs from residential property because the property's main or only use is commercial (for business use), rather than serving as a residence.
Can I manage all my commercial properties in one place?
Yes, register for an online account and call us to get all your properties added so they all appear on your online account dashboard.
My tenant is moving, what do I need to do?
Please make sure you get a meter reading the day your tenant moves out, and you're responsible for paying for the energy bills. For more info, please go to Moving business premises.
I'm already with British Gas business, how do I request my free smart meter for my commercial let?
Log in and submit a meter read. You'll then be able to fill out our Request a smart meter form.
Additional information
See our call charges.
