Empty Property: Should I Pay Supply Charge?

Who pays for utilities when a property is empty?

When a rental property sits empty between tenants, the question of who pays for gas, electricity and water often causes confusion. The landlord usually becomes responsible for supply charges during void periods, but the details depend on the utility type, the supplier and how the previous tenancy ended.

Understanding how liability passes from tenant to landlord can help you avoid unexpected bills or disputes with suppliers.

How liability transfers when tenants leave

In a straightforward situation, an outgoing tenant contacts their utility suppliers to close their account and provides a forwarding address. They give final meter readings and settle any outstanding balance. At that point, responsibility for ongoing charges transfers to the property owner.

If the tenant leaves without notifying suppliers, things become messier. The supply company may attempt to trace the former tenant, but if they cannot, they may look to the landlord as the property owner. You could find yourself pursued for bills that should have been the tenant's responsibility.

To protect yourself, take meter readings when tenants move out and keep dated photographic evidence. Contact suppliers promptly to let them know the tenancy has ended and register yourself as the responsible party for the void period.

Business Standing Charge Calculator

Work out how much your business pays in daily standing charges over a year, for electricity, gas or both, even when a unit is empty.

Try our Business Standing Charge Calculator free, here on this site →

Standing charges and water bills on empty properties

Even if no gas or electricity is used, you will still face standing charges. These are daily fixed fees that cover the cost of maintaining supply to the property. While they generally apply regardless of usage, some suppliers waive standing charges if the service is officially disconnected, so check with your specific supplier about their policy.

For a property that sits empty for a few weeks, these charges will be modest. Over longer void periods, they add up. You can check current standing charge rates with your supplier or compare them using price comparison services.

Water charges work differently. In England and Wales, if your property has a water meter, charges are primarily based on usage, though fixed infrastructure charges may still apply regardless of consumption. Without a meter, you may face rateable value charges regardless of occupancy. Some water companies offer reduced charges for genuinely unoccupied properties, so contact your supplier to ask about their policy and any applicable fixed fees.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Should you disconnect or keep supplies connected?

For most landlords, keeping gas and electricity connected is often recommended. You may need heating to prevent damp or frozen pipes, and you will want power for maintenance visits or viewings. Reconnection fees and delays can cause problems when new tenants arrive.

Telephone and broadband are different. Unless you specifically need connectivity for an alarm system or similar, closing these accounts until a new tenant moves in may be worthwhile. However, check your contract terms first, as many agreements have notice periods or early termination fees that could make cancellation costly. The physical line stays in place, so new tenants can set up their own contracts without difficulty.

If you do keep supplies connected, consider switching to a cheaper tariff during the void period. Some suppliers offer products designed for low usage properties, though availability varies and such options are not guaranteed with all providers.

Practical steps for landlords

A few simple actions can reduce problems with utility charges on empty properties:

• Include a clause in tenancy agreements requiring tenants to notify suppliers when they leave
• Take dated meter readings at every change of tenancy
• Register with suppliers as the responsible party during void periods
• Check whether your water company offers unoccupied property discounts
• Review tariffs to avoid paying more than necessary on low usage

For properties left empty for extended periods, council tax liability is another consideration. Local authorities have different policies on empty property exemptions and premiums. Check with your council directly or visit GOV.UK for guidance on council tax and empty homes.

Handling the paperwork correctly when tenants change over prevents billing disputes and unexpected charges arriving months later.

If the empty property is a commercial unit, the rules and costs work a little differently. See our guide to empty commercial property standing charges, or use the business standing charge calculator to work out what an empty unit is costing you each year.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Business Standing Charge Calculator lets you work out how much your business pays in daily standing charges over a year, for electricity, gas or both, even when a unit is empty. Try it now →