This entry is part 9 of 13 in the series Green Deal

Repayment of the Green Deal Plan

Section 1(6) Energy Act 2011, provides that instalments due under the green deal are to be “made by the person who is for the time being liable to pay the energy bills for the property”.

The energy supplier must notify the bill payer once improvements have been installed that payments for the green deal are to be included in the energy bills for the property and they must notify the amounts of those payments and the period for which they are to be made [12]. However, before the first instalment is collected, the green deal provider must ensure that the improvements have been installed in accordance with the code of conduct and that both the bill payer has been notified about the instalments and that the EPC which contains details of the improvements and the green deal plan has been produced (see later under disclosure for more details about this EPC disclosure document) [13].

Instalments due under the green deal plan will be attached to the electricity bill [14] unless electricity is not supplied to the property, in which case a demand just for the green deal instalments may be made by the energy supplier (whether that supplier is a gas or electricity supplier).

Who is liable to pay the energy bill (and therefore the green deal instalments)?

If a consumer (such as a tenant) has a contract with an electricity supplier, then, as that person is the one who is liable to pay the energy bills, that person is who must repay the green deal instalments. Normally this person would be the occupier but it could be the landlord if the rent includes bills and the electricity is in the landlords name.

If a tenant has recently taken up occupation of a property but not yet agreed a contract to supply energy with any particular energy supplier, then, there is a deemed contract between the occupier and the current energy supplier in place before the last tenant or occupier vacated. Where there is no occupier, the deemed contract is between the owner and the energy supplier and so the owner will be liable for paying the instalments during any void periods [15]. This is something landlords and letting agents need to be aware of in particular if there is to be a projected lengthy void for example during a refurbishment. The green deal instalments will continue to be payable even when nobody is in occupation.

If the electricity gets disconnected whether through default of payment by the tenant whilst in occupation or by specific request (perhaps when a tenant is leaving for example), then, it is the title holder of the property who is liable to pay the instalments, unless that person has let the whole of the property under a registrable lease (a lease of more than seven years) in which case, it is the holder of that lease who is liable (unless they have further sub-let for a term of more than seven years and so on) [16].

A term in a tenancy won’t be able to prevent the owner (title holder) being liable if a tenant has their electricity supply disconnected due to non-payment but, it may be possible for a term in the tenancy to require reimbursement should the owner become liable for green deal payments as a result of the tenants default.

Early repayment – non-domestic property

Non-domestic business properties are capable of having an early repayment term [17]. The green deal plan may contain what is known as a trigger event which would trigger the early repayment requirement.

Trigger events occur when the use of the credit under the green deal plan changes as follows:

  • from business use to a use that is not for a business;
  • from wholly business use to partial business use; or,
  • the bill payer changes on a business property
    [18]
  • [12] Section 8 Energy Act 2011 – For the date contained in the notice when the repayments will start from, see regulation 41 The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012  ↩

  • [13] Regulation 26 The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012  ↩

  • [14] Regulation 4(2)(a), The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012  ↩

  • [15] For electricity see paragraph 3, Schedule 6, Electricity Act 1989. For gas see: paragraph 8, Schedule 2B, Gas Act 1986  ↩

  • [16] Regulation 6, The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012  ↩

  • [17] Regulation 38 The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012  ↩

  • [18] Regulation 2 The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012  ↩

  • Series Navigation<< Installation by Green Deal Installers||Green Deal Disclosure Requirements >>

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