Utility rebilling, answered.
Plain-English answers to the questions RTM directors, RMC boards, managing agents and leaseholders ask us most often.
Getting Started
What is utility rebilling?
Utility rebilling is the process of taking a single communal utility supply — electricity, water, heat or broadband — and fairly dividing the cost across the flats in a residential block. The freeholder, RTM or managing agent holds the supplier contract; we act as the rebilling specialist, issuing a clear invoice to each leaseholder or tenant for their share.
How does utility billing work for residential blocks?
Most blocks have one or more landlord-supply meters covering communal areas and (in some cases) the flats themselves. The supplier bills the block, we read meters or apply an agreed allocation rule, residents are invoiced for their share, payments are collected automatically and the account is reconciled against the supplier each month.
Can utility costs be recovered from leaseholders?
Yes — where the lease provides for it. Most modern leases allow communal utility costs to be recovered either through the service charge or as a separate utility recharge. We review the lease and agree the right mechanism with the board before any billing starts.
Can utility costs be recovered from tenants?
Yes, where the tenancy agreement allows it. For resold electricity Ofgem sets a Maximum Resale Price — landlords cannot charge above the underlying supplier cost. We build that ceiling into every bill and keep the recharge fully transparent so disputes don't arise.
How are bills calculated?
Each bill shows the underlying supplier cost, the meter read or allocation method, and the leaseholder or tenant's share — in plain English. Where sub-meters exist we bill actual usage; otherwise we apportion fairly using the rule agreed with the block (equal split, floor area, occupancy or sub-metered actuals).
Do you collect payments?
Yes. Residents can pay by Direct Debit, card or bank transfer. Reminders are automated, and a structured arrears process handles late payers — so the recovery rate stays high without anyone on the board chasing.
What utilities can you bill?
Communal electricity, water (metered and unmetered), heat (heat network billing), gas where present, and bulk broadband. We can bill any combination, on a single monthly invoice per resident.
Do you work with RTM companies?
Yes — RTM directors are one of our core client groups. See our dedicated RTM Companies page for full detail on how we support self-managed blocks.
Do you work with managing agents?
Yes. We sit alongside agents on Qube, Propman, Re-Leased, MRI and other platforms, handling the utility leg under your brand. See our Block Managers page for how the partnership works.
How quickly can we get started?
Most blocks are fully migrated within four to six weeks. We collect supplier data, lease terms and historical reads, run a parallel month, then switch over cleanly.
General
What is utility rebilling? (detailed)
Utility rebilling is the process of dividing a single communal utility supply — electricity, gas, heat or water — across individual flats in a residential block and invoicing each leaseholder for their share, based on actual consumption wherever possible.
Who needs utility rebilling?
Any residential block of flats where one supplier account feeds the whole building. That includes most new-build developments, converted blocks with communal services, and any building with communal heating, communal water or communal electricity behind the main intake.
Is rebilling required by law?
Rebilling itself is contractual — driven by what the lease says. Where it is done, it must comply with Ofgem maximum resale rules for electricity and gas, Ofwat resale guidance for water, and the Heat Network (Metering and Billing) Regulations for heat.
How much does utility rebilling cost?
Our fee is £10 per unit per month, fully disclosed, with every service included — rebilling, reconciliation, collection, arrears recovery and resident support. There are no hidden commissions and no undisclosed admin charges.
How long does it take to onboard a block?
Most blocks are live within four to eight weeks. The process covers supplier notifications, opening reads, historic data migration, resident communications and onboarding into our billing platform.
RTM, RMC and Managing Agents
How does rebilling work for an RTM company?
The RTM holds the supplier contract. We act as the rebilling agent — reading meters, applying the supplier-verified tariff, issuing leaseholder invoices, reconciling monthly and pursuing arrears. Directors get a single monthly report they can present at AGM.
Can you work alongside our existing managing agent?
Yes. We do not compete for block management instructions. We run the billing engine while the agent retains overall management of the block.
What happens to existing utility arrears when we switch?
We provide a structured handover. Arrears can either stay with the outgoing provider or transfer to us. Most clients transfer so residents have one point of contact.
Will residents notice the change?
Yes — clearer invoices, faster query response, a named support line and structured arrears handling. We write to every resident before the first bill issues.
Do you white-label communications for managing agents?
Yes. Resident communications can be issued under the managing agent's brand where required.
Electricity
What is the Ofgem maximum resale price?
It is the maximum that can be charged when reselling electricity (or gas) to a leaseholder. It must not exceed the supplier's per-unit cost plus a proportionate share of standing charges. We enforce this automatically.
What VAT rate applies to communal electricity rebilling?
Domestic electricity supply to residential flats is generally charged at the reduced 5% VAT rate. Landlord-supply consumption recovered through the service charge may follow different rules. We apply the correct rate per line.
How are landlord-supply costs (lifts, lighting) handled?
Landlord-supply consumption is separated from resident-supply consumption and recovered through the service charge or apportioned across flats transparently, depending on what the lease requires.
Gas
How is plant gas billed in a block with communal heating?
Plant gas is recovered through the heat network billing process. Residents pay for kWh of useful heat delivered to their flat. The underlying gas cost is reconciled monthly against billed heat output.
Can a block of flats have individual gas meters per flat?
Where the building is designed with individual gas runs, yes. Each flat can either have its own supplier account or be billed through communal rebilling.
Water
Is there a maximum resale price for water?
Yes. Ofwat publishes a maximum resale price for water that limits what can be charged to a resale customer. We apply it as a baseline.
What happens if the block has no individual water sub-meters?
We apportion the wholesaler invoice using a documented methodology — typically occupancy, bedroom count or rateable value — agreed with the freeholder or RTM.
Heat Networks
Is heat network billing regulated?
Yes. It is regulated under the Heat Network (Metering and Billing) Regulations, with broader market regulation being phased in under Ofgem oversight.
Why is my heat bill higher than my neighbour's?
Heat consumption depends on usage, occupancy, hot water draw, thermostat behaviour and flat position in the building. Two identical flats can have very different heat consumption.
What happens if a heat meter fails?
We bill on the documented fallback methodology — usually historic average consumption — until the meter is repaired, then reconcile when the meter is back online.
Do you comply with Heat Trust principles?
Yes. Our processes are aligned with the Heat Trust framework, even where formal membership has not been adopted by the network operator.
Arrears and Collections
How do you handle resident arrears?
Through a structured pre-legal recovery process — soft reminders, formal demand, payment plans for residents in genuine difficulty, and escalation only where the client instructs us to.
Do you charge extra for debt recovery?
No. Debt recovery is included in our £10 per unit per month fee. Legal escalation is handled on instruction and charged at cost.
Can residents pay by Direct Debit?
Yes. Direct Debit, card and bank transfer are all supported. Direct Debit penetration typically rises sharply in the first three months after switching to us.
Still have a question?
Talk to a rebilling specialist by phone, WhatsApp, SMS or email. Written itemised quote within 48 hours, no obligation.