With soaring energy prices and collapsing providers, everyone is worried about rising costs and the implications of their current supplier going bust.  Tenants may be particularly worried as a higher proportion of their incomes goes towards keeping the home warm. This may also have implications for landlords as tenants may struggle to keep on top of their bills and their rent payments. They may also not heat the property sufficiently which could lead to damp, mould and general deterioration.

Below are some actions that landlords can do to help:

1. signpost tenants to any financial support they are entitled to:
Warm Homes Discount is provided by most suppliers and provides eligible households with a £140 discount. This is paid automatically for those in receipt of Pension Credit Guarantee. For those on a low income and in receipt of a means tested benefit, they will need to apply – and it is on a first come, first served basis so they need to act now.
https://www.gov.uk/the-warm-home-discount-scheme

Winter Fuel Payment is provided automatically to those aged over 66 or over. Payment is usually made during November or December and for this year, definitely by 14^th January 2022. The amount varies between £100 and £300 depending on circumstances.
https://www.gov.uk/winter-fuel-payment

Cold Weather payments is paid automatically to those in receipt of certain benefits where the average temperature in the area is recorded as, or forecast to be zero degrees Celsius or below over 7 consecutive days. It is paid as £25 for each 7 day period of cold weather between 1^st November and 31^st March.
https://www.gov.uk/cold-weather-payment

2. encourage your tenants to understand what price increases mean for them:
If tenants are currently on a standard variable or a prepayment meter they will be subject to the Energy Price Cap. This is a protection set by government that applies to standard variable tariffs (default energy tariffs) whether paid by direct debit, standard credit or prepayment meter.

The rise on the price cap in October of 12% meant average annual increases of approximately £139 on standard tariffs paid by monthly direct debit (£153 for prepayment meters). There is due to be another review in April 2022.

If tenants are currently on a fixed tariff, the price per unit of energy will be locked in for a specific period, usually 12 or 24 months.

Usually the advice from Ofgem, Energy Saving Trust and other energy services is to shop around for a better deal, especially when a fixed tariff contract ends. Unfortunately there are unlikely to be any better deals at the present so tenants should make an informed  decision of whether to ‘lock into’ a more expensive fixed tariff or to remain on the standard variable with the Energy Price Cap.

If a tenant is struggling to pay their bills they should contact their energy supplier in the first instance as they should be able to offer assistance.

3. what to do if the current supplier goes bust:
If this happens, the tenant will not lose their gas or electric supply so they should not panic.  Within a few days a new supplier will be appointed and your tenants will be switched over on a new ‘deemed’ contract.

Advise your tenants to take a meter reading as soon as they hear their energy company has gone bust – better still take a photo of the meter with the reading and the meter serial number visible – and then wait to be contacted. Any credit or debit balance should be picked up by the new supplier.

4. improve the energy performance of your property
Improving the energy efficiency of your property can make a huge difference to your tenants bills and does not need to be costly. Simple draught-proofing of windows and doors can help. Ensure the boiler is regularly serviced and the tenants know how to use the controls. Smart meters will help tenants control their usage. Insulate the roof and walls – check if you can get financial help with this through your local council, either through Green Homes Grant or Energy Company Obligation funding.