The Energy Price Guarantee ceased to apply to tariffs on 1 July 2024, according to guidance on energy management for renters. The scheme placed a limit on the rate a supplier could charge, and landlords who received support under it were expected to pass the discount on to tenants within six months of receiving it1.
The guidance sets out the position plainly:
"This will only have applied to tariffs until 1 July 2024."
The same guidance lists two other schemes that landlords may have benefited from. The Energy Bill Discount Scheme applies to landlords with business energy supplies, which may include residents of park homes or those renting business space. The Alternative Fuel Payment was available where heating is not connected to the gas grid, and was worth £200, which landlords should have passed on if their application succeeded1.
Where a landlord has received support, the guidance states they must contact the tenant within 30 days, reveal how much support they received and how much will be passed on. If the full amount is not passed on, the landlord should explain why. For example, if rent including energy bills did not rise when energy prices increased, the landlord is entitled to keep the payment. If some or all of the payment is passed on, the landlord must say when it will be received and how, such as through a discount on rent. If a landlord declines to pass on the discount, they must explain how the decision can be challenged1.
The guidance also covers the maximum resale price of energy. A landlord who pays the energy bills cannot charge a tenant more than they pay themselves for gas and electricity. Bills should be based on accurate meter readings rather than estimates, and smart meters should record this automatically. Tenants who believe they are being overcharged can ask the landlord for a copy of the bill and how the figure was reached, and can seek help from Citizens Advice1.
Why it matters for households
For a household that pays its supplier directly, the end of the Energy Price Guarantee means the protection it gave against high unit rates no longer sits behind the tariff. What governs the default rate now is the price cap, and the relationship between the two is set out in our guide to the Energy Price Guarantee as a closed crisis scheme.
For renters whose energy is included in rent or billed separately by a landlord, the practical effect is different. The duty to pass on support received under the guarantee has a time limit attached, and the guidance indicates the discount should have reached tenants within six months of the landlord receiving it. A tenant who never saw a reduction has no route through the scheme itself now that it has ended, though the maximum resale price rule still applies to what a landlord can charge.
The wider point concerns control. A household that cannot choose its supplier, because the landlord holds the account, cannot move to a fixed, tracker or time-of-use tariff of its own choosing, and the link between tariffs and household energy independence runs through that choice. Where the account is in the tenant's own name, the position is the same as for any homeowner.
What happens next
No further steps are set out in the guidance. It does not state whether any replacement support for renters is planned, and no such scheme has been reported.
Sources1 cited
- How to manage your energy if you rent - Confused.com, confused.com
