What is the maximum price electricity and gas can be resold at?
The resale of electricity and gas is subject to a maximum resale price (“the MRP”) which is set by Ofgem. Since 1 January 2003 the maximum price at which electricity and gas can be resold is the same price as the reseller was charged by the supplier, including any standing charges.
Does the maximum resale price apply to park owners?
The maximum resale price applies to anyone who resells electricity and gas for domestic use. This includes both residential and holiday parks.
When is the maximum resale price not applicable?
It will not apply where an inclusive charge is made for accommodation with no specified charge for electricity or gas. It will also not apply to the resale of liquefied petroleum gas (LPG) either in cylinders or through bulk tank systems.
How are electricity and gas bills calculated on a holiday park?
The method for calculation of the bills is dependent upon whether or not individual meters are installed on the park.
- Where individual meters are installed - the reseller will be expected to charge according to the consumption on the meter and the unit prices on his own bill. The park owner must not charge more than the maximum resale price as where an overcharge is made a homeowner may be entitled to a refund.
- Where there are no meters installed - the reseller will have to make reasonable endeavours to estimate what proportion of the total bill each purchaser should pay. There are no hard and fast rules as to what methodology should be used to estimate but the reseller must ensure that they are able to explain how the bill was calculated if requested by the purchaser.
Can any costs be recovered?
Any standing charges the suppliers make can be recovered in the electricity and gas bill and must be done so on a pro rata basis according to the amount of energy used by each.
Any costs which the reseller incurs due to administering his own contracts or maintaining his property must not be recovered within the electricity or gas bill. The reseller would need to recover this through a separate charge which the purchaser must have agreed to.
Where a park owner seeks to recover the costs incurred due to administering his own contracts or maintaining his property this could be recovered through an administration charge. If you are detailing this cost on your electricity/gas bill it must feature separately from the recovery costs and have been agreed with the homeowners.
Find out more
For further help or support, please contact our specialist Parks team who will be happy to provide bespoke advice and guidance.
