Energy prices don't just affect tenants & homeowners. For letting agents, changes to energy costs can also have an impact on void periods, property running costs and tenancy changeovers.
With Ofgem's energy price cap changing every three months, staying on top of utility accounts is even more important. So, what does the energy price cap actually mean for letting agents and what do you need to know?
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What is the Ofgem price cap?
The Ofgem energy price cap sets a maximum unit rate and standing charge that suppliers can charge customers on standard variable tariffs.
It doesn't cap the total amount a household can pay. The amount a customer pays depends on how much energy they use.
How often does the price cap change?
Ofgem reviews and sets the price cap every three months (changing on 1 January, 1 April, 1 July, and 1 October). Depending on wholesale energy market fluctuations, capped rates can increase or decrease quarterly.
Want to know what's happening with current energy prices?
We've also put together a regularly updated guide covering the latest energy price cap changes:
What's Happening With the Latest Energy Price Cap?
How does this affect my tenants?
Tenants on standard variable tariffs may see their unit rates and standing charges change when the price cap is updated.
A few simple reminders can help tenants understand their energy account and avoid unnecessary billing issues.
At move-in, encourage tenants to:
- Take meter readings: Make a note of gas and electricity readings when they move in.
- Keep a record: Taking a photo of the meter can provide a useful record of the reading and date.
- Understand their tariff: Make sure tenants moving-in to a new property know who their current supplier is and what type of tariff they're on.
- Keep their supplier updated: Encourage tenants to provide their meter readings to their supplier regularly to help avoid estimated bills.
You can also point tenants towards our guide on how to locate and read a gas meter.
How does the price cap affect void period management?
| Daily standard charges can accumulate fast |
Even if a property uses zero gas or electricity while empty, suppliers still charge a daily standing charge to keep the property connected to the grid. When standing charges or standard variable rates rise under Ofgem’s cap, the baseline daily cost of holding empty properties increases. Across a portfolio managing hundreds of lets, unmanaged void periods can quietly accumulate utility costs for landlords or agencies. |
| Consistent price changes can create billing errors |
When a tenancy ends, letting agents must notify utility providers with accurate, time-stamped final meter readings to transfer responsibility back to the landlord or managing agent. Delays in this process or missing meter readings often lead energy suppliers to estimate usage using old unit rates or outdated price cap tariffs. When capped rates shift quarterly, these estimated bills frequently miscalculate costs across tenancy handovers, leading to billing disputes and unexpected liabilities during void periods. |
How can Letting Agents make void periods more profitable?
Here are three tips on how to help properties be more profitable in void periods:
- Record meter readings at every change-over: Take clear, time-stamped photo readings on move-out and move-in days.
- Notify suppliers promptly: Once a tenancy ends, make sure the relevant utility suppliers and local authorities are notified with the correct information.The quicker this is done, the easier it is to establish who is responsible for the property at each stage of the tenancy.
- Keep an audit trail: Utility queries are much easier to resolve when you can show time-stamped documents of meter readings, when suppliers were notified of change-overs & who is responsible for the property.
How can Notify by One Utility Bill help letting agents manage utility changeovers?
Managing utilities across a property portfolio can mean a lot of notifications, meter readings and supplier queries. Notify by One Utility Bill helps letting agents take some of that admin off their plate:
| Automate utility notifications |
Connect Notify to your CRM and relevant move information can be used to notify energy, water and council suppliers when a tenant moves in or out. |
| Keep a clear audit trail | Get downloadable records showing when notifications were made, giving your team a clear record if a supplier query comes up later. |
| Keep voids simple | There are no hidden void period charges and no unnecessary void switching. Existing suppliers can remain in place during a void unless instructed otherwise, helping keep things transparent throughout the changeover. |
| Let our team handle supplier queries | If something goes wrong, your team doesn't have to spend hours chasing suppliers. Our utility team can help deal with supplier communications and issues on your behalf. |
| Earn revenue from qualifying move-ins | As well as saving your team admin time, Notify can generate guaranteed commission on qualifying move-ins, giving your agency another way to generate revenue from the process. |
Book a Demo with the Notify Team Today or email us at partnerships-success@oneutilitybill.co to see how much time and money your agency can save.