On-charging electricity to tenants – tips for a smoother process
Individual metering and billing place increased demands on property owners. Here are tips to make the process fair, legally sound, and administratively smooth.
Why on-charging is complex
Regulations state that the tenant should be billed for actual consumption, without the property owner profiting from the electricity itself. Many property companies still use standard mark-ups – which creates both legal risk and lost revenue.
Four tips for a smoother process
- Reconcile sub-meters against the main meter monthly. Differences exceeding 2–3% signal either metering errors or unidentified consumption in common areas.
- Allocate the power/demand charge proportionally. Not all tenants contribute equally to the demand peak – heavy consumers should bear a larger share.
- Settle upon vacating. Always take a reading on the actual move-out day, not at the end of the month.
- Clarify in the lease agreement. Describe exactly how electricity is billed, including any administrative fees (which must be reasonable and actual).
What you can do first yourself
- Review the past month's billing against readings
- Identify if any tenant is paying a standard rate instead of actual consumption
- Check that the administrative fee does not exceed the actual handling cost
Would you like a personal review?
This guide provides free knowledge from Savera and is intended to give you concrete things to check on your own. We are an independent advisor in corporate electricity – if you would like us to specifically examine your contracts, invoices, or consumption, you are welcome to book a free initial consultation.
Tip: Document your allocation method in writing. This is often the first question that arises if a tenant were to dispute the billing.