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Landlords could foot tenants’ energy bills as debt hits £5bn

Featured graphic: landlords could be liable for tenants' energy bills as GB domestic energy debt hits £5.02bn

Landlords could be made to pay their tenants’ gas and electricity bills under plans published alongside the Budget on 28 October 2026. The government says it will legislate to make landlords tell the energy supplier when tenants move in or out, and where nobody does, the landlord may become liable for the energy charges.

The pledge sits in the Energy Debt Circuit Breaker, a joint strategy from the Department for Energy Security and Net Zero (DESNZ) and Ofgem. It comes as household energy debt and arrears hit a record £5.02bn, with Ofgem estimating that home moves are linked to between 20% and 40% of it.

This is a proposal, not law. No bill has been published and there is no start date. But the direction is clear, and the habits that will protect you are worth adopting now.

Key facts

  • Government will legislate “when parliamentary time allows” to put a new legal duty on landlords to give suppliers timely, accurate information when tenants move in or out.
  • If neither the tenant nor the landlord provides it, landlords may become liable for the energy charges. Ofgem’s consultation describes this as joint and several liability, unless exempt.
  • Domestic energy debt and arrears reached £5.02bn in Q2 2026, up from £1.09bn in Q1 2018 (Ofgem).
  • Ofgem estimates 20% to 40% of energy debt is linked to changes of occupancy.
  • The model is the water rule in Wales, where landlords must name occupiers within 21 days or share liability for the bill.
  • Separately, HMRC is consulting until 20 January 2027 on making letting agents and deposit schemes report more landlord data, including National Insurance numbers.

What the government has proposed

The strategy, published on gov.uk on 28 October 2026 as part of the Budget 2026 collection, says government will bring legislation to Parliament to reform the “home moves” process. Landlords would have a new obligation to give their supplier timely and accurate information whenever tenants move into or out of a property.

The sting is in the next line. Where neither the tenant nor the landlord has passed on the information, landlords “may become liable for energy charges associated with the property”. Ofgem’s home moves consultation, published the same day, goes further: it says landlords “will be jointly and severally liable” for those charges, “unless exempt”.

Joint and several liability means the supplier could chase you, the tenant, or both, for the full amount. The government says it will consider whether different liability rules suit the social rented sector, and will consult landlord and letting agent groups on the practical detail.

IssueWhat the documents sayStatus
Landlord duty to notify suppliers of tenant movesNew primary powers “when parliamentary time allows”Proposed, no bill yet
Liability if nobody notifiesLandlord may become liable; Ofgem says jointly and severally, unless exemptProposed
Social landlordsDifferent liability arrangements may be consideredUnder review
Deadline to notifyNot set (“timely and accurate”)Not yet known
Supplier guidance on remote switch to smart pay-as-you-go when a tenant leavesOfgem consultation, voluntary for suppliersConsultation closes 9 December 2026
Tenant right to a smart meter without landlord consentNew legislation plannedProposed

Scope: the strategy covers the Great Britain energy market. It has not yet said whether the landlord duty will apply in England, Scotland and Wales alike. Northern Ireland’s energy market is regulated separately and is not part of this package.

Why now: £5bn of energy debt

Ofgem’s own figures show debt and arrears owed for more than 91 days has more than quadrupled since 2018. Three quarters of it now sits with customers who have no repayment plan at all.

Long-term empty homes in England, 2004 to 2025 Bar chart of dwellings empty and substantially unfurnished for over six months in England, from 318,642 in 2004 down to 200,145 in 2016 and up to 303,185 in October 2025. Long-term empty homes in England (empty 6+ months) Count each October, council tax base data, MHCLG Live Table 615 100k 200k 300k 0 2004: 318,642 2005: 313,616 2005 2006: 314,719 2007: 314,285 2008: 326,954 2008 2009: 316,251 2010: 299,999 2011: 277,529 2011 2012: 254,059 2013: 216,050 2014: 205,821 2014 2015: 203,596 2016: 200,145 2017: 205,293 2017 2018: 216,186 2019: 225,845 2020: 268,385 2020 2021: 237,340 2022: 248,149 2023: 261,474 2023 2024: 264,884 2025: 303,185 2025 Nov 2012: EDMO bar raised to 2 years 303,185 From 5 November 2026 the EDMO threshold returns to 6 months, the same test used for these figures.
Source: Ofgem, Debt and arrears indicators (total financial value of domestic customer debt and arrears existing for more than 91 days, Q1 2018 to Q2 2026).

Home moves are a big leak. In Great Britain you get power the moment you move in, with no need to open an account. Energy UK estimates suppliers hold no details for more than one million households, and Ofgem’s consultation says an unnamed occupier takes about 90 days on average to make first contact.

Private renting is at the centre of it. Ofgem cites the English Housing Survey showing 67% of home moves in England in 2024/25 involved someone moving into or out of privately rented accommodation. Every household pays for the fallout: the strategy puts the cost of managing debt at about £67 a year on the average bill.

The water bill rule it copies

The government says the reform would mirror landlords’ existing water bill obligations under the Water Industry Act 1991, section 144C. Under that section, an owner who lets residential premises must arrange for the water company to be told who the occupiers are. If they fail, the occupiers’ liability for charges becomes shared jointly and severally with the owner.

One important correction. The strategy says this applies to water bills in “England and Wales”, but legislation.gov.uk records section 144C as fully in force for Wales only, from 1 January 2015. Ofgem’s consultation itself refers to the arrangements that “already exist in water in Wales”. In England, the duty has never been fully switched on.

The Welsh regulations, which cover water companies whose area is wholly or mainly in Wales, set the detail that an energy version may copy:

  • What to give: occupiers’ full names, dates of birth (where the tenant gave them to you) and the date they moved in. No details of anyone under 18.
  • When: within 21 days of the occupier moving in. Your failure ends once the information reaches the water company, whoever supplies it.
  • Tell the tenant first: you must tell the occupier before you pass their details on.
  • How: by post, telephone or email to the water company.

If you let in Wales and do not already do this, you are exposed on water bills today, not in some future energy law.

Calculator: your move-out exposure

How much could an unreported changeover cost you if the proposal becomes law in its current form? The default bill is Ofgem’s typical dual-fuel price cap for October to December 2026, which the strategy puts at £1,723 a year. Swap in your own figures.

Calculator

Move-out energy exposure calculator

–energy used per day, per property
–exposure per unreported changeover
–potential annual exposure, portfolio
–what a 90-day gap (Ofgem average) would cost per changeover

Guide only, not advice. Assumes even use across the year; winter bills run higher. Liability rules, exemptions and deadlines have not been set and may differ from this model.

Worked example 1: a single flat with a typical £1,723 annual bill uses about £4.72 of energy a day. If the tenant leaves without settling and nobody tells the supplier for 30 days, roughly £142 of usage is unaccounted for.

Worked example 2: a three-property landlord with one changeover a year at each faces about £425 a year at a 30-day gap. At Ofgem’s 90-day average first-contact time, each changeover is worth about £425 on its own, or about £1,275 across the portfolio.

HMOs and multi-let portfolios carry the sharpest risk. More tenancy changes mean more chances for a move to go unreported, so the paperwork trail matters even more.

What to do now: move-in and move-out checklist

Nothing is compulsory for energy yet. But a landlord who already logs readings and notifies suppliers on the day will have nothing to change, and a clean record if a supplier ever comes knocking.

Step 1: Find the supplier. Check the last bill first. For gas, Ofgem points to the Find My Supplier postcode search or the Meter Number Helpline on 0870 608 1524 (7p a minute plus your phone company’s access charge). For electricity, use the Energy Networks Association’s find my network operator tool, then look up the supplier on that operator’s website.

Step 2: Record the meter numbers. Note the MPRN (gas) and MPAN (electricity) for each property and keep them in your tenancy file.

Step 3: Read and photograph the meters on the day a tenant leaves and the day a new one moves in, with a date-stamped photo. Get the tenant to sign the reading on the inventory.

Step 4: Tell the supplier the same day. Give the move date, the reading and the incoming tenant’s name. Tell the tenant you are doing this, and note the date, time and reference number.

Step 5: Handle the water company. In Wales, it is the law: occupiers’ names, dates of birth (if you hold them) and move-in date within 21 days. In England, it is good practice.

Step 6: Update your tenancy agreement and check-in pack so tenants know who supplies the property and agree to the details being shared.

  • Supplier names for gas and electricity on file for every property
  • MPRN and MPAN recorded
  • Move-out meter readings taken and photographed (date-stamped)
  • Move-in meter readings taken, photographed and signed on the inventory
  • Tenant told their details will be passed to suppliers
  • Gas and electricity suppliers notified on move day, reference numbers logged
  • Water company notified (within 21 days in Wales)
  • Council tax team notified of the change of occupier
  • Forwarding address requested from the outgoing tenant
  • Utilities section of the check-in pack updated

Also in the Budget: HMRC wants agents’ landlord data

A second Budget-day document targets landlords’ information. HMRC’s Improving property income data reporting consultation, published on 28 October 2026, proposes that letting agents and tenancy deposit scheme providers report more data to HMRC, more often.

Under the proposals, tax identifiers would be added, including National Insurance numbers for individuals and company numbers for companies. Gross rental income, dates of birth and tenancy start and end dates are listed as possible extra fields. HMRC would move from annual reporting to monthly or quarterly, and its initial view is that there should be no minimum threshold.

HMRC says it currently issues over 10,000 notices a year to get this data and calls it “a manual and resource-intensive process”. This is a consultation only. It closes on 20 January 2027, and no start date has been set.

FAQs

Are landlords liable for tenants’ energy bills now?

Not under this proposal, which is not yet law. Government has said it will legislate when parliamentary time allows, but no bill or start date has been published. Usually the tenant who pays the bills is the supplier’s customer.

When would a landlord have to pay a tenant’s gas or electricity bill?

Under the plan, only where neither the tenant nor the landlord gave the supplier the necessary information about a move. Ofgem describes this as joint and several liability unless exempt. Exemptions have not been defined.

Do landlords have to tell water companies about new tenants?

In Wales, yes. Landlords must give the water company occupiers’ names, dates of birth (if known) and move-in date within 21 days, or share liability for the bill. The equivalent duty is not fully in force in England.

How do I find out who supplies energy to my rental property?

For gas, use Find My Supplier at findmysupplier.energy or call 0870 608 1524. For electricity, find the network operator through the Energy Networks Association’s postcode tool, then search for the supplier on the operator’s website.

Can I comment on the plans?

Ofgem’s home moves consultation, which asks specifically about landlord notification, is open until 9 December 2026. Responses go to debtstrategy@ofgem.gov.uk. Government says it will engage landlord groups on the detail of the new duty.

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