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Recent research shows that only one in four tenants are switching energy suppliers when they move into a rented home, even though they could save money.  Energy watchdog Ofgem reckons tenants could save around £190 a year by changing their gas and electricity suppliers.

According to The Association of Inventory Clerks, it is a widespread practice for agents and landlords to sign exclusive deals with utilities to secure commission on energy and water supplied to rental properties.  What’s more, some agents and landlords include clauses in tenancy agreements forbidding tenants to switch suppliers, which is unlawful and are charging tenants an exit fee for moving suppliers, which is also illegal.

Pat Barber, Chair of the AIIC comments: “It is common practice for agents and landlords to sign deals with utility suppliers to secure a commission.  When a new tenant moves in, they are not told about the current utility arrangement and are led to believe they can’t change suppliers.  Tenants are paying over the odds for their energy and water without realising it.

“Recently, we came across an extreme case of hiking the price of water supplies when we discovered that a letting agent had their own water meters installed in several properties - instead of approved meters supplied by the water company. This enabled the agent to control the amount that tenants were charged for their water each month, presumably being billed directly by the official water supplier and making a profit from each meter.

“What landlords, agents, or their inventory clerk should be doing at check-out is taking meter readings for the gas, electricity and water. The next step should be to make sure that the previous tenants have cancelled/transferred all their utilities by contacting the suppliers directly.  New tenants should be told of any existing arrangements with utility suppliers and advised that they can select a supplier of their choice, if they so wish.”

The AIIC is committed to excellence and professionalism in the property inventory process and works hard to ensure that all landlords, tenants and letting agents understand the importance and benefits of professionally completed property inventories.

For further information, please visit www.theaiic.co.uk

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