Are you paying for someone else’s electricity?
Our client was lighting his landlord’s premises, part of a 10,000sq ft warehouse.
A tenant in a 10,000 sq ft warehouse off Junction 3 of the M5, was unaware he was paying his landlord’s huge lighting bill. A regulatory five year check, part of his tenancy agreement, showed his landlord was only paying for the supply to electricity sockets, not the electric lighting supply. The £22,000 plus VAT remedial work necessary to meet regulatory standards, and insurance criterion identified that the tenant, had been paying for his landlords lighting, as the supply had not been properly separated.
A Track and Trace audit, ie tracking the electricity supply and tracing who is paying for it, carried out by one of eicrtesting.com Qualifying Supervisors, Matt, showed what was happening. Both landlord and tenant were unaware the landlord was being supplied with lighting free of charge! and the tenant controlled his landlord’s lighting!
As a result, the rent was renegotiated to compensate for the huge overspend, and the electricity supply separated. Our client is now only paying for his own electricity usage. The payback has been immediate.
“This is not at all unusual” says Jeff Longley, Director of eicrtesting.com and Mr Electric, Birmingham.
“We have recently attended a property where the upstairs tenant was unaware he was paying for the electricity supplied to a Chinese Takeaway downstairs, until he turned his electricity off and found he had cut off the Takeaway’s electricity, and called us to sort the problem out.”
On another occasion, a client, a multi million pound company found it had overpaid £54,000 over a 5 year period, as the property hadn’t had the electricity supply professionally split.
This can easily happen when properties are let and sublet.