One mis-read number on the electricity meter at check-in, and the final bill lands on the wrong person. If you cannot show what the meters said on the day the keys changed hands, a dispute about utility bills usually comes down to your word against your tenant’s, and the deposit scheme will want evidence, not recollection. This guide is for landlords in England who already know the basics and want their meter records to stand up when it matters. We cover who pays which bill, what Ofgem allows you to charge when you resell energy, how back-billing and estimated bills work, and how to document readings so they settle arguments instead of starting them. Where Wales, Scotland or Northern Ireland differ, we say so.
Why meter records matter more than you think
Utility disputes rarely start with a dramatic event. A tenant moves out, the supplier sends a final bill based on an estimate, someone claims the meter showed a lower number at check-in, or a bills-included tenant decides the recharge looks too high. At that point the person with dated, legible readings is in control of the conversation, and the person without them is guessing.
Meter readings are not extra paperwork. They are the evidence that decides whether an unpaid final bill comes out of the deposit or out of your pocket, and whether a recharge survives a challenge. The running costs of a let are also part of your real return, so they feed directly into your rental yield. That is why it pays to keep them with the rest of the property’s numbers, for example alongside your property records and the value of the home over time.
- ▸If you recharge energy to a tenant by usage, Ofgem's maximum resale price applies: you may charge no more than you paid the supplier, standing charges included.
- ▸A genuinely "all bills included" rent falls outside the maximum resale price, but you then carry the risk of high consumption.
- ▸Energy suppliers cannot back-bill for energy used more than 12 months ago if the customer was not billed correctly, unless the customer blocked access to the meter or behaved manifestly unreasonably.
- ▸A signed check-in inventory with dated photos of every meter is what a deposit scheme adjudicator can actually rely on.
Who pays the bills: the three set-ups
In England the tenancy agreement decides who pays for utilities. The Tenant Fees Act 2019 lists a payment “for or in connection with the provision of a utility” as a permitted payment if the tenancy agreement requires it, and defines utility as electricity, gas or other fuel, water or sewerage (Schedule 1, paragraph 9). Council tax is a separate bill to the local council, listed as its own permitted payment (paragraph 8). In practice, utilities are set up in one of three ways:
| Set-up | What it means for you |
|---|---|
| 🔁 Tenant holds the accounts | The tenant is the supplier's customer and pays directly. Your job is to record the readings at check-in and check-out so that each tenant pays only for their own period. |
| 📦 All bills included | You hold the accounts and charge one inclusive rent. Ofgem says the maximum resale price does not apply where a flat is rented as "all bills included". The tenant's consumption becomes your cost. |
| 🧾 You recharge by usage | You hold the accounts and bill the tenant for what they use. This is resale, and the maximum resale price applies: the same price per unit you paid, with no profit. |
| 💧 Water | A tenant may have the water bill in their own name or pay for water through the rent. If you resell water, you should charge no more than the water company would, plus a reasonable administration fee. |
← Swipe horizontally to see the whole table
The maximum resale price in plain English
When gas or electricity is resold, section 37 of the Gas Act 1986 and section 44 of the Electricity Act 1989 let Ofgem set a maximum price, which it does through the Maximum Resale Price (MRP) direction. In Ofgem’s own words: “Where the end use is for domestic purposes, the MRP is set so that the price at which each unit of gas or electricity may be resold must be the same as that paid to the supplier by the person reselling it.” You do not need a licence to resell energy within the same premises, but you must follow the MRP.
A few details trip landlords up:
- Estimates are allowed, with conditions. You do not have to bill from a sub-meter: “they can use estimates so long as the methodology is transparent and provided upon request. When estimating, the reseller must ensure the user is not overcharged and may not charge consumers for their own consumption (such as a live-in landlord sharing premises with their tenants).”
- You must show your invoices. A reseller has to reveal what they paid and provide documentary evidence when asked. If that evidence is not provided in a timely manner, the tenant can deduct twice the Barclays Bank base rate from money due for energy until it is. Where an overcharge is found, it is repaid with interest at twice the average Barclays base rate.
- Ofgem does not enforce it. Ofgem sets the MRP but is not responsible for enforcing it. A tenant who thinks they have been overcharged can claim through the courts or tribunal, which can use the MRP direction as the basis for the decision. Resale is also outside the scope of the Energy Ombudsman.
- The price cap may not protect your tenant. If you buy energy on a non-domestic contract, a tenant you resell to is not protected by the price cap; they pay whatever you paid.
Metering fees count only where they are part of your supply contract. Ofgem notes that extra costs such as billing or maintaining your own sub-meters sit outside the MRP, but may be covered by other housing rules. In England, the Tenant Fees Act bans any payment it does not expressly permit, so check before adding a fee.
Ofgem is reviewing these rules. Its call for input on the MRP direction ran from 9 October to 5 December 2025, the first substantive review since 2001. Until it publishes changes, the cost pass-through rule above is the one that applies.
Calculate the most you can recharge
Enter the meter readings for the period and the rates from your own supplier bill. The two buttons below fill in the Ofgem price cap averages for 1 October to 31 December 2026 as an example only: under the MRP, what counts is what you actually paid. Everything is calculated in your browser, and nothing is sent anywhere.
* Illustrative calculation. Price cap example: Ofgem, average Direct Debit rates for England, Scotland and Wales, 1 October to 31 December 2026; gas includes 5% VAT, electricity carries no VAT from 1 October 2026 to 31 March 2027. Gas meters record volume, so convert to kWh the way your bill does. A genuinely all-inclusive rent is outside the MRP.
The end of a tenancy: what happens when
Most utility disputes are born in the few weeks around a move. This is how the dates line up for an energy account in the tenant’s name in England, with the deposit running alongside:
-
Before the moveThe tenant tells their suppliersAt least 48 hours' notice for gas and electricity; at least 5 working days for a metered water supply, so the water company can arrange a final reading.
-
Move-out dayRead and photograph every meterBoth of you note the readings and the date, and they go into the check-out report.
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Within 6 weeksThe supplier sends the final billCompare it with the move-out readings, not with an estimate.
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Within 10 days of agreeingThe deposit goes backIf you cannot agree, the deposit scheme's free dispute service decides on the evidence.
The incoming tenant should read the meters on the day they move in and give the readings to the current supplier. If they do not choose a tariff, they are automatically put on a deemed contract at the supplier’s default or standard variable tariff. That is the tenant’s business if the account is in their name, and yours if it is in yours.
Back-billing and estimated bills
Since May 2018 Ofgem has banned suppliers from back-billing domestic customers for energy used more than 12 months ago. The exceptions are narrow: Ofgem names behaviour that is “obstructive, such as blocking physical access to a meter, or manifestly unreasonable, such as tampering with a meter or stealing energy.” Its July 2026 review of supplier billing adds that even when the rules are applied correctly, “customers can still face a catch-up bill covering charges from up to 12 months ago.”
Estimated bills are where these catch-up bills come from. Suppliers must take all reasonable steps to obtain a meter reading once a year, and Ofgem found that customers with smart meters get more accurate bills with fewer estimates. For you, the practical lesson is simple: a dated reading at every change of occupier means the supplier can split consumption between accounts on facts rather than estimates.
The price cap in context. Ofgem’s price cap limits the unit rate and standing charge on default tariffs, not the total bill: the more energy someone uses, the more they pay. It is reset every three months. From 1 October to 31 December 2026, the typical Direct Debit bill under the cap is £1,723 a year for England, Scotland and Wales. That is useful as a benchmark when you set a bills-included rent, but it does not tell you what a particular tenant will use.
When the tenant pays the bills
- Electricity and gas: their account, their supplier, their tariff
- Water: often a bill in their own name
- Smart meter: their choice if the bill is in their name; Ofgem advises landlords not to refuse unreasonably
When you hold the accounts
- All bills included: no MRP, but the consumption risk is yours
- Recharged by usage: MRP applies, so keep every supplier invoice
- Resold water: no more than the water company's charge plus a reasonable admin fee
The check-in inventory: your strongest evidence
However thorough your tenancy agreement, the inventory is the document a deposit scheme will look at first. Shelter’s guidance on deposit disputes is blunt: “A landlord needs to show proof of the property’s condition at the start and end of your tenancy if they want to keep money for damage or cleaning charges,” and a scheme will likely reject a claim that is not supported by an inventory and a check-out report. The government’s former How to Rent checklist (withdrawn on 1 May 2026 when assured periodic tenancies replaced it) gave tenants the same advice for meters: take readings when you move in, with a photo showing the reading and the date and time.
Draw up the record at check-in and at check-out. For each meter, note:
Electricity, gas and water meter, and whether each is a smart meter or a traditional one. On a multi-rate meter, note which register is which.
Electricity in kWh, with each rate recorded separately on a multi-rate meter; gas and water by volume, exactly as the meter shows it.
Plus anything unusual: a missing seal, a display that does not light up, a prepayment meter carrying debt.
You and the tenant sign the inventory, and each keeps a copy.
For each meter, take a photograph in which the serial number and the reading are both legible. A phone photo with its date and time is far harder to argue with than a number copied onto a form. Keep the records for the whole tenancy and afterwards: in England and Wales, a claim founded on a contract can be brought for up to six years (Limitation Act 1980, section 5). Scanned inventories and meter photos are easiest to find when they sit in one place with the property, which is what a document store attached to each asset is for.
Tip: If the tenant pays the bills, a smart meter works in your favour too. Smart Energy GB notes that smart meters send readings to the supplier automatically, which means accurate bills during and at the end of a tenancy. If the energy bill is in the tenant’s name, it is their choice to have one installed, and Ofgem advises landlords not to unreasonably prevent it.
Common disputes and how records prevent them
The same situations come up again and again. Good records settle them before they escalate:
Without a signed inventory and a photo, you cannot prove otherwise. With them, the conversation is over in minutes.
The Tenant Fees Act defines a tenancy deposit as security for the tenant's obligations and liabilities "arising under or in connection with a tenancy", capped at five weeks' rent where the annual rent is under £50,000 (six weeks' at £50,000 or more). If the tenancy agreement makes the tenant pay for utilities and you can show what they used, a deduction has something to stand on. The scheme's free dispute service will ask both of you for evidence, and its decision is final.
Give the supplier the move-out reading and ask for the bill to be reissued. A dated reading also helps the next tenant, whose first bill then starts from a real number. Back-billing protection limits any later catch-up to energy used in the last 12 months.
Send the supplier invoices and, if you estimate rather than sub-meter, your method. That is what the MRP requires anyway, and delay costs you: until you provide the evidence, the tenant can deduct twice the Barclays base rate from what they owe for energy.
How a property-management app helps
A spreadsheet and a folder of photos work while you have one flat and a reliable tenant. Once tenants come and go, or you let more than one property, it pays to keep meter readings in one place and in one timeline.
What you gain from recording readings properly:
Water, electricity and gas readings, each with its date and meter reading, and priced automatically from the rates valid at the time.
You notice an unusual jump, such as a leak or a faulty appliance, while it is still a small bill rather than a large one.
Unit rates, standing charges and advance payments are set per property, so you can see what each let really costs before you price the next one.
Inventories, meter photos and supplier invoices stored with the property, ready for a recharge question or a deposit dispute.
Utility costs are part of your property’s income and expenses, which Assetli records per property and per period next to rent, maintenance and insurance, so the net cash flow of each let is visible at a glance. If you hold the energy accounts yourself, energy price watch compares your tariff with the Ofgem price cap for your region. When these figures sit alongside your net-worth overview and spending analytics, you decide on data rather than guesswork. That is the principle Assetli is built on, and why it suits investors and landlords in particular.
A practical checklist
Tick off the items as you go. The checklist is interactive, so you can mark what is done while you prepare.
Frequently asked questions
Can I make a profit on energy I recharge to my tenant? +
No. Under Ofgem's maximum resale price, gas and electricity resold for domestic use must be charged at the same price you paid the supplier, standing charges included. The rule does not apply to a genuinely all-inclusive rent, where energy is not charged separately.
Can an energy supplier bill for energy used years ago? +
Generally not. Since May 2018 Ofgem has banned suppliers from back-billing domestic customers for energy used more than 12 months ago, unless the customer was obstructive, for example by blocking access to the meter, or manifestly unreasonable, for example by tampering with it.
Do I need photos if the inventory is signed? +
It is strongly recommended. A signed inventory is evidence, but a dated photo showing both the serial number and the reading is much harder to dispute, and deposit schemes decide disputes on the evidence both sides provide.
Can I deduct unpaid utility bills from the deposit? +
Potentially, if the tenancy agreement makes the tenant responsible for the bill and you can show what is owed. The deposit is security for the tenant's liabilities in connection with the tenancy. If the tenant disagrees, the deposit scheme's free dispute service decides on the evidence, so readings, photos and invoices matter.
What should happen with the meters when tenants change? +
The outgoing tenant gives suppliers at least 48 hours' notice and reads the meters on the day they leave; the incoming tenant reads them on the day they arrive. Recording the same readings in the check-out and check-in reports means each account starts and ends on a real number, not an estimate.
Conclusion: records are cheaper than disputes
A utility dispute costs time and goodwill, and it often ends with the landlord absorbing a bill simply because one photo or one signature was missing. A signed inventory, dated meter photos and readings kept through the year are the cheapest protection you can have. If you resell energy, the same records are what show you charged no more than you paid.
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Start for free on assetli.app →You might also be interested in how running costs and the value of the property add up to your overall net worth: see How property value grows over time and How to calculate your net worth.
Sources and references
- Ofgem. Reselling gas and electricity: Maximum Resale Price direction, call for input (9 October to 5 December 2025): legal basis (Gas Act 1986 s.37, Electricity Act 1989 s.44), same-price rule, estimates, “all bills included” exclusion, what the MRP covers, evidence and interest at twice the Barclays base rate, enforcement through courts or tribunal, no Energy Ombudsman. ofgem.gov.uk, PDF
- Ofgem. Ofgem bans suppliers from backbilling customers beyond 12 months (domestic customers from May 2018; obstructive or manifestly unreasonable behaviour excepted). ofgem.gov.uk
- Ofgem. Domestic Billing Performance Assessment (27 July 2026): annual meter reading duty, smart meters and estimated bills, catch-up bills of up to 12 months. ofgem.gov.uk
- Ofgem. Energy price cap unit rates and standing charges, 1 October to 31 December 2026 (Direct Debit averages, £1,723 a year, VAT treatment). ofgem.gov.uk
- Ofgem. Energy price cap: what it limits and how often it changes. ofgem.gov.uk
- Tenant Fees Act 2019, Schedule 1: permitted payments (tenancy deposit cap para. 2, council tax para. 8, utilities para. 9). legislation.gov.uk
- GOV.UK. Tenancy deposit protection (approved schemes, 30 days to protect, return within 10 days of agreement) and disputes (free dispute resolution, evidence, final decision). gov.uk, gov.uk
- GOV.UK. Assured periodic tenancies: a guide for tenants (deposits, utilities and other payments, from 1 May 2026). gov.uk
- GOV.UK. How to rent: the checklist for renting in England (withdrawn 1 May 2026): inventory and dated meter photos. gov.uk
- Citizens Advice (England). Moving home: dealing with your energy supply (48 hours’ notice, readings on moving day, final bill within 6 weeks, deemed contract). citizensadvice.org.uk
- Citizens Advice (England). Moving home and water bills (5 working days’ notice for a water meter) and Paying your water bills if you’re renting (bill in your name or through rent; resold water capped at the water company’s charge plus a reasonable admin fee). citizensadvice.org.uk, citizensadvice.org.uk
- Shelter England. Evidence for a deposit dispute. shelter.org.uk
- Smart Energy GB. Smart meters for landlords (tenant’s choice when the bill is in their name, Ofgem’s advice on refusal, automatic readings). smartenergygb.org
- Limitation Act 1980, section 5: six years for actions founded on simple contract (England and Wales). legislation.gov.uk
- Renting Homes (Fees etc.) (Wales) Act 2019, Schedule 1: permitted payments, including utilities. legislation.gov.uk
- mygov.scot. Water and sewerage services (charges collected with council tax). mygov.scot
Disclaimer: This article is for educational purposes only and does not constitute legal advice. It describes the position in England as of 13 October 2026, based on the sources above; the rules can change, and Ofgem is reviewing the maximum resale price. In a specific dispute, please seek advice from a solicitor or Citizens Advice.
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