Electricity contract in a rented flat in 2024: who signs it
The electricity contract in a rented flat can be in the landlord’s name or in the tenant’s. Both options are allowed. But a lot depends on who is the party to the contract with the supplier: who receives the bills, who files the declarations and how charges are calculated in the tenancy. And in January 2024, a new tenant’s question about transferring the meter has one more angle, because energy prices for households remain frozen and the consumption limit is tied to a specific customer. Below I compare both options, explain what the price freeze changes, and give a list of things to sort out now.
Who signs the contract with the electricity supplier in a tenancy?
It can be the landlord, it can be the tenant. The law does not impose a single solution. Electricity is one of the charges independent of the owner (alongside gas, water, sewage and waste collection), which follows from Article 2(1)(8) of the Act on the protection of tenants’ rights. Article 9(5) and (6) of the same act, in turn, states that apart from rent the landlord collects only such charges. And only when the tenant does not have a contract concluded directly with the supplier.
What does this mean in practice? That the choice has to be written explicitly into the contract. The clause on who is responsible for energy and on what terms should go into the part describing utilities in the lease agreement. Otherwise one of the parties will be left guessing later, and guesswork in a tenancy usually ends in a dispute.
Contract in the landlord’s name versus the tenant’s - a comparison
In short: a contract in the landlord’s name gives them control over payments, while a contract in the tenant’s name moves the bills and the risk of arrears onto the tenant. This is easiest to see side by side.
| Issue | Contract in the landlord’s name | Contract in the tenant’s name |
|---|---|---|
| Who receives the bills | The landlord | The tenant |
| Re-invoicing and settlement | The cost is passed on to the tenant as a charge independent of the owner | None - the tenant pays the supplier directly |
| Consumption limit at the frozen price | Assigned to the landlord as the customer | Assigned to the tenant as the customer |
| Risk of arrears | The landlord is liable to the supplier | The tenant is liable to the supplier |
| End of the tenancy | No formalities with the supplier | The meter has to be transferred back |
In the first option, the invoices go to the landlord, who then charges them to the tenant. The tenant stops paying? The debt to the supplier stays with the owner anyway. In the second, the tenant settles up directly, so the landlord does not collect any charge for electricity. There is a trade-off: after the tenant moves out, the landlord has to make sure the contract returns to their name or is taken over by the next person.
Frozen electricity prices in 2024 and renting: what does the contract party change?
The 2023 prices applied to households until 30 June 2024, but only within the consumption limit. And the limit was assigned to the customer who was the party to the contract. This is set out in the Act of 7 December 2023, under which the limit for this half-year is half of the annual limit.
Anything above that threshold is billed at the price from the tariff or the contract. And this is where it gets interesting when electricity is re-invoiced to the tenant: the landlord passes on the actual cost from the bill, so a tenant who uses a lot of energy will pay partly at the higher rate.
Declarations and applications to the supplier are filed only by the person who concluded the contract with it. Is the meter in the owner’s name? Then the owner takes care of the formalities. After the transfer, the obligation passes to the tenant. And how will a change of customer in the middle of the half-year affect the limit? It is best to ask your supplier about that before deciding anything.
How to settle electricity when the meter stays in the landlord’s name?
The landlord charges the tenant for the cost of energy as a charge independent of the owner, based on the supplier’s bills and the meter readings. When such a charge goes up, the landlord should provide a written statement giving the reason for the increase. This is not a matter of goodwill but a requirement under Article 9(2) of the act protecting tenants’ rights.
The settlement method itself is agreed by the parties in the lease agreement. Most often it is a monthly advance payment with a periodic adjustment, or a reimbursement of the amount from each bill. Both models are described in our guide to settling utilities. I recommend keeping the invoices together with the property’s documents, so that if questions come up you can simply show them to the tenant. And disputed or unusual cases (for example, several tenants on one meter) are better discussed with a lawyer.
Transferring the meter to the tenant - what to do in January 2024?
The decision to transfer the meter to the tenant is best made before the property is handed over. And the meter reading should be recorded right away. The order is as follows:
- Agree with the tenant who will be the party to the contract with the supplier.
- Write the chosen option into the lease agreement.
- Record the meter reading with the date in the handover report and have both of you sign it.
- Ask your supplier about the required documents and about how the change affects the consumption limit.
- Agree how the contract will return to the owner once the tenancy ends.
The meter reading in the handover report is the starting point for every later settlement. That is why the flat handover report should include the reading, the meter number and the date. And which option should you choose? Usually the length of the tenancy decides:
- Keep the contract in your name when the tenancy is short or tenants change often - you avoid repeating the formalities.
- Transfer the meter when the tenancy is meant to last longer and you want to cut off the risk of arrears with the supplier.
It is a good idea to keep the report and the bills in one place. In Tenanto you can store them as documents attached to the property, so they are at hand when the tenant changes.
So, all in all, the electricity contract in a rented flat requires above all a clear decision and a matching clause in the lease agreement. The rest (settlements, declarations, end-of-tenancy formalities) follows from who the supplier treats as the customer.
Frequently asked questions
Yes, with the owner’s consent and cooperation. The tenant then becomes the customer and is responsible for the payments. The formal details, including the list of required documents, will be provided by the supplier serving the property.
They should not. Apart from rent, the landlord collects only charges independent of the owner, which in this case means the cost of energy shown on the bills. And when those charges go up, the landlord gives the tenant a written statement stating the reason.
The meter reading is entered in the handover report, which closes the settlement with the tenant who is moving out. If the contract was in the tenant’s name, it returns to the owner or passes to the next person. It is best to agree the procedure for such a change with your supplier before the day the keys are handed over.
