Ofgem proposes landlords pay tenants’ unpaid energy bills

Ofgem proposes landlords pay tenants’ unpaid energy bills

Ofgem has launched a consultation proposing that landlords could be held responsible for energy bills left unpaid by tenants who move out without settling their accounts. The consultation closes on 9 December 2026.

Energy regulator Ofgem is consulting on a proposal that would require landlords to pay energy bills for tenants who leave properties without paying their outstanding utility debts. This measure targets the estimated £6 billion of utilities debt attributed to tenants who move out without settling their bills. The consultation highlights that a significant cause of rising energy debt is “lack of engagement” by consumers, meaning tenants who do not provide forwarding details or communicate with energy suppliers, leaving suppliers uncertain about who is responsible for the property’s energy account.

The consultation suggests that landlords would be responsible for informing gas and electricity suppliers when tenants move out. If tenants fail to pay their energy bills, landlords would then be liable to cover these costs. Ofgem argues that the current system places suppliers in a difficult position, requiring resource-intensive investigations to determine liability retrospectively, often relying on incomplete or unavailable evidence.

Details of Ofgem’s proposed moving home process

The Ofgem consultation document, spanning 52 pages, outlines a proposed new moving home process aimed at clarifying responsibility for energy bills when tenants vacate a property. The key proposal is to place the onus on landlords to provide accurate information to energy suppliers about tenant departures. This would aim to reduce the period during which suppliers are unaware of the responsible party, thereby limiting the accumulation of unpaid energy debts.

Currently, energy suppliers face challenges when tenants fail to engage or provide forwarding details, leading to extended periods of uncertainty and unpaid bills. By involving landlords directly in the notification process, Ofgem hopes to streamline billing responsibility and reduce bad debt in the energy sector. The consultation acknowledges that this would represent a significant change in landlord obligations, potentially exposing them to new financial risks.

Ofgem’s consultation closes on 9 December 2026. The full proposal is available at Ofgem’s website.

Context and implications for landlords and letting agents

This consultation comes amid ongoing pressures on the private rented sector, where landlords already face a growing array of regulatory and compliance demands. Adding responsibility for unpaid tenant energy bills would mark a notable shift in landlord liabilities, extending their financial exposure beyond rent arrears and property maintenance.

Landlords and letting agents must consider the practical implications of this proposal. If implemented, they would need robust procedures to track tenant move-outs and promptly notify energy suppliers. This could require additional administrative resources and coordination with tenants to obtain accurate departure information. Failure to do so could result in landlords being held financially liable for energy debts they had no direct control over.

From a risk management perspective, landlords may need to review tenancy agreements to include explicit clauses addressing responsibility for utility bills and tenant cooperation in providing forwarding details. Letting agents will likely need to update their tenant onboarding and exit processes to ensure compliance with any new notification requirements.

Challenges and uncertainties ahead

Several uncertainties remain regarding the proposal. The consultation does not specify the exact mechanisms for landlords to verify tenant departures or how disputes over liability would be resolved. It also raises questions about the impact on landlord-tenant relationships, particularly if landlords are required to cover substantial unpaid bills initially.

There is also potential for increased costs to landlords, which could be passed on to tenants through higher rents or service charges. The proposal’s effect on tenant behaviour is unclear; while it aims to reduce “lack of engagement,” some tenants may respond negatively to landlords’ increased involvement in utility matters.

Additionally, the proposal could affect landlords differently depending on the size and nature of their portfolios. Small-scale landlords may find the administrative and financial burdens particularly challenging, while larger landlords and professional letting agents might be better equipped to manage the changes.

What landlords should do now

Landlords and letting agents should monitor the consultation and prepare for possible changes by reviewing current tenancy agreements and utility billing processes. Ensuring clear communication with tenants about their responsibilities for energy bills and obtaining forwarding contact details at tenancy start and end will be essential.

It is advisable to maintain accurate records of tenant move-in and move-out dates and any communications regarding utility accounts. Landlords should also consider seeking legal or professional advice on how to incorporate protections against unpaid energy bills into tenancy agreements.

Staying informed about Ofgem’s final decisions and any related government guidance will be crucial. Landlords may also want to engage with industry bodies and trade associations to share concerns and best practices as the consultation progresses.

Supporting landlords through regulatory changes

The Landlord Association (TLA) offers membership that provides access to practical compliance resources and guidance tailored to evolving landlord obligations. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help landlords and letting agents organise tenancy records, manage rental documentation, and keep track of key actions such as tenant move-ins and move-outs. This can support landlords in meeting new notification requirements and maintaining evidence of compliance.

Members can explore TLA’s compliance resources to review tenancy agreements and utility management procedures in light of Ofgem’s proposals. ORBIT’s developing features include tools to record communications and property management activities, which will be valuable for landlords adapting to increased responsibilities around tenant energy bills.

Explore TLA membership and learn more about ORBIT BETA access to stay prepared for regulatory changes affecting the private rented sector.

Looking ahead, landlords should anticipate further consultations and potential legislation that may formalise these proposals. Proactive preparation will help mitigate risks and ensure landlords remain compliant as the regulatory environment evolves.

Sources: Landlord Today, Ofgem Consultation