Tenants may be concerned about increasing energy prices and the possibility of their existing provider going bankrupt. The government has guaranteed it's not a supply problem, but renters may require help from their agents, and Let Sell Property is here to help.
Why Have Prices Risen?
A reasonable price limit ensures equitable energy pricing for consumers and suppliers based on market conditions. Wholesale gas is expensive. The price ceiling restricted how much suppliers could pass on to consumers, causing several to collapse. The former increase in October 2021 and the current increase in April reflect rising gasoline prices for suppliers.
Refer fuel-poor renters to financial aid
Most providers help low-income and fuel-poor homes if renters cannot pay their bills. The Warm Home Discount gives qualified families a £140 discount, while Winter Fuel Payments with Cold Weather Payments assist the most underprivileged and heat their homes in the winter.
Open and honest conversations with renters may help you understand their circumstances and give appropriate assistance. Some of these payments are automatic, but others must be requested, so acting quickly is essential. First, renters should contact their energy provider, who may assist them in receiving financial aid and verify they're on the lowest possible contract.
What happens if their supply defaults.
This year, nine energy suppliers have failed, affecting 1.9 million households and more will fail this winter. The government and Ofgem said the present problem "is not a supply issue" and "the UK benefits from a diversified variety of gas supply sources with the ability to satisfy demand." Renters will be converted to a new "deemed" contract with a new provider within a few days, and the energy supply will continue as usual.
Tenants should take a meter reading as soon as they learn their current provider is going out of business (or, even better, snap a picture of the meter with the reading and serial number visible). Instead of instantly switching suppliers, they should then wait for contact from the new provider.
Encourage renters to research price hikes.
As energy prices climb, tell your renters to check their energy bill for their provider and rate.
Ofgem encourages "searching around for a better offer" albeit this is difficult. However, if they are currently on a fixed rate tariff, their energy cost will not change for the duration of their contract (often 12 or 24 months). Therefore, they should stick with their current plan until it expires. It is important to make sure your renters make educated decisions.
Improve property energy efficiency
Landlords and brokers may make their houses as energy-efficient as possible, reducing tenant expenses. Making sure windows and doors are correctly fitted to retain heat is straightforward, and frequently maintaining boilers and heating systems may help prevent expensive problems and identify when modifications are required.
Heat retention typically determines a building's energy efficiency. Smart meters and low-energy bulbs can also help, so ask your renters if they can enhance the energy efficiency of their house or equipment.
