Business Energy Recharges

Accurate, compliant recovery of tenant energy costs

Business energy recharges are required in multi let commercial properties where landlords or managing agents recover electricity, gas or water costs, from tenants which share main incoming supplies.

Getting this right is essential as poorly managed recharges can lead to disputes, compliance risks and unrecovered costs.

How energy recharges work

Energy costs are typically recovered using one of the following approaches:

• Sub metered billing - Tenants are billed based on their actual consumption, measured via individual sub-meters installed in their office space.
• Apportionment methods - Where sub meters are not in place, costs can be allocated using agreed methods such as floor area or usage ratios.

Charges must be fair, transparent and auditable

Clear billing is essential, with invoices showing:

• Usage or allocation methodology
• Energy costs and standing charges
• VAT rate

How IEC can help

As a specialist business energy consultancy, we help landlords and managing agents put robust, compliant energy recharge frameworks in place. Our support includes:

• Collecting meter reads physically and remotely
• Reviewing recharge methodologies
• Validating supplier and tenant invoices
• Advising on sub metering strategies
• Ensuring compliance with resale and VAT rules

If you manage multi let properties and want confidence that your energy recharges are fair, accurate and compliant, contact us today.