Setting up bills when renting

Moving into a new rental property in the UK means you will need to set up household bills. Understanding the process and your rights as a tenant can make this straightforward. This guide will walk you through what you need to know, from deciphering your tenancy agreement to managing your energy usage.

Setting up your energy accounts in a new rental property can be simple with Fuse Energy. We offer clear pricing, real-time usage data, and 24/7 human customer support to help you manage your energy from day one. Click here to get started.

Understanding your tenancy agreement and bill responsibilities

Your tenancy agreement is the foundational document that outlines your responsibilities as a renter. Before contacting suppliers, review this agreement carefully to understand what bills you are accountable for.

Bills included vs bills excluded

Tenancy agreements vary significantly. Some, particularly in shared accommodation or student lets, might include certain utilities like gas, electricity, or water within your monthly rent. This is known as "bills included". In such cases, your landlord is responsible for managing these accounts and paying the suppliers directly. If your bills are included, you typically cannot switch suppliers yourself.

However, in most private rental agreements, bills are "excluded", meaning you, as the tenant, are responsible for setting up and paying for your household utilities. This usually includes electricity, gas, water, council tax, and a TV Licence.

Identifying the account holder

It is crucial to establish who the account holder is for each utility. If bills are excluded from your rent, the accounts for electricity, gas, and water should be transferred into your name. This makes you the direct customer of the utility provider, giving you control over the accounts. If you pay the energy bills directly and the account is in your name, you generally have the legal right to choose your own energy supplier and switch to a different tariff.

Essential household bills for UK renters

When renting in the UK, you will typically be responsible for several key household bills.

Electricity and gas

These are often the largest utility costs. You will need to set up accounts with electricity and gas suppliers. The average UK home uses around 2,500 kWh of electricity and 9,500 kWh of gas per year, according to Ofgem's Typical Domestic Consumption Values (TDCVs) as of 1 July 20261. Your actual usage will depend on your home's size, insulation, and lifestyle.

Water bills

Water and sewerage services are provided by regional companies. You will need to contact the relevant water company for your area to set up your account. Unlike electricity and gas, you cannot switch water suppliers.

Council tax

This is a local government tax based on the value of your property. You must register with your local council to pay council tax. Students may be eligible for discounts or exemptions.

TV Licence and broadband

If you watch or record live TV, or stream programmes on services like BBC iPlayer, you will need a TV Licence. This applies regardless of the device you use, including TVs, laptops, and mobile phones. Broadband is essential for most households today, and you will have a wide range of providers to choose from.

Step-by-step: setting up your utility accounts

Follow these steps to ensure a smooth transition and avoid common pitfalls when setting up your utility accounts.

Taking opening meter readings

On the day you move into your new property, take accurate opening meter readings for both electricity and gas. Take photos of the meters showing the date and time as proof. This prevents you from being charged for the previous tenant's usage. Submit these readings to the existing suppliers promptly. For manual meters, you should submit readings within 5 days so billing is correct.

Finding your current suppliers

If you do not know who the current energy suppliers are for your new home, you can find out easily. For electricity, use the "What's My Supplier?" tool provided by National Grid Electricity Distribution. For gas, use the "Find My Supplier" service. You will need your postcode for both.

Registering new accounts

Once you know the current suppliers and have your opening meter readings, contact each utility provider (electricity, gas, water, and local council for council tax) to register new accounts in your name. Provide your move-in date and the opening meter readings.

Your right to switch energy suppliers

As a tenant responsible for your energy bills, you have the legal right to switch energy suppliers, even if your landlord has a preferred provider. This right is protected by Ofgem, the UK's energy regulator. Switching can help you find better deals and save money. While you do not need your landlord's permission to switch, it is often a good idea to inform them, especially if your tenancy agreement has specific clauses about returning to a particular supplier at the end of your tenancy.

Managing your energy bills as a renter

Once your accounts are set up, proactive management can help you keep your energy costs under control.

Understanding your tariff and usage

Familiarise yourself with your energy tariff, including the unit rates for electricity and gas (pence per kWh) and the daily standing charge. Understanding how much energy you use and when can help you identify opportunities to reduce consumption.

Submitting regular meter readings

If you have a smart meter that is working correctly, it should send readings automatically, making manual submissions unnecessary. However, if your smart meter is not sending readings automatically, submitting regular manual meter readings (monthly is ideal) can help ensure your bills are accurate and based on your actual usage, rather than estimates.

Budgeting for bills

Create a budget that includes all your household bills. Consider setting up a Direct Debit for your energy bills, as this is often the cheapest way to pay. Many suppliers issue bills monthly, with payment taken a few days later. For example, Fuse Energy bills are issued on the second working day of each month, with payment typically taken 3-5 working days later.

Common pitfalls and how to avoid them

Navigating household bills can have its challenges. Being aware of common issues can help you avoid them.

Disputes over readings

Failing to take accurate opening meter readings is a frequent cause of disputes. Always take dated, clear photos of your meters when you move in and out. This provides undeniable proof of your usage.

Unexpected charges

Not understanding which bills are included in your rent can lead to unexpected costs. Clarify all bill responsibilities with your landlord or letting agent before signing your tenancy agreement. Delaying the setup of utility accounts can also result in estimated bills or even service interruptions.

Dealing with debt

If you find yourself struggling to pay your energy bills, contact your supplier immediately. They can offer advice and discuss payment options. Organisations like Citizens Advice can also provide support and guidance on managing energy debt.

Managing your energy bills as a renter can be straightforward with the right tools and support. Fuse Energy is designed to simplify your energy experience, offering transparent billing and real-time usage data through our app. With 24/7 human customer support, you can get help whenever you need it. Make your move easier and take control of your energy.

Click here to switch to Fuse Energy today. Find out more about our mission to make energy simpler and greener here.

References

1. Ofgem. Review of Typical Domestic consumption Values