Advisors tackling energy bill liability in HMOs

Advisors tackling energy bill liability in HMOs

Confusion around who should pay energy bills in homes of multiple occupancy (HMOs) is the latest trending issue needing to be resolved by advice agencies.

Citizens Advice Swindon, which is part funded by British Gas Energy Trust to help people tackle energy issues in their homes, has seen a ‘noticeable’ rise in HMO tenants seeking their support – some with debts running into the thousands of pounds.

Many landlords offer all-inclusive bill structures to tenants, but the practice is not universal. This leads to confusion as to who should be paying bills when they arrive – and who is legally liable for any debt that builds up.

Ameeta Bassi, Project Manager at Citizens Advice Swindon, said: “Over the last quarter, we saw a noticeable, although still relatively small, rise in HMO tenants seeking help with energy problems. Previously, this wasn’t something we came across often, so even a modest increase stood out. At present, this trend appears to be continuing, with more people getting in contact about unexpected liability for energy bills.

“The main problem reported is around liability for energy bills in shared accommodation. We are seeing cases where tenants have been added to the household’s energy account, sometimes at the landlord’s request, despite their tenancy stating that bills were included in the rent.

“As a result, some tenants have been left with energy debts of several thousand pounds. In many instances, they are not actually liable for these debts, but the system assumes responsibility lies with whoever is named on the account.

“In the most serious cases, bailiffs have attended tenants’ homes once moved from the property, causing significant distress and anxiety. Even when the individual pursued was never responsible for the charges in the first place, they have been left out of pocket.”

The team at Citizens Advice Swindon have stepped in to challenge liability debts and liaise with energy suppliers directly to correct account details and remove inappropriate charges.

The issue is affecting people like Peter*, who contacted the charity after moving out of an HMO where all bills were included in his rent. He later discovered his name had been added to the energy account without his knowledge, leaving him responsible for more than £2,000 of arrears built up by previous tenants.

The team was able to intervene by contacting Peter’s energy provider to provide evidence of the tenancy agreement and successfully challenge the debt to ensure he was removed from the account and no longer pursued for payment.

Ameeta added: “To help stop this trend, clearer guidance for both landlords and tenants is needed, alongside stronger oversight of billing practices in shared accommodation. Better communication between suppliers, landlords, and tenants would also reduce the risk of people being wrongly held liable.”

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*name changed to protect identity