In September we reported that the Government was to make it a legal obligation for landlords using "bills included" tenancies to pass on the cost of living crisis £400 energy bills rebate to their tenants. Currently, over half a million private rented sector tenants (equivalent to 13% of PRS tenants) are on such tenancies.

Regulations have now been brought in (as of 1st November), under the Energy Prices Act 2022, covering the "Pass-through Requirements on Intermediaries" - with landlords included in the 'Intermediary' category and tenants included in the 'End User' category.

Relevant intermediaries "are any individual or organisation that holds and electricity and/or gas contract and passes on the cost of the energy supplied under this contract to an end user of the energy supplied". Private landlords, sub-lessors, and student accommodation managers are included in the list of intermediaries.

Passing on any [energy support] benefit must be done in a "just and reasonable way" and the intermediary can adjust the amount they pass on based on their charges to the end user. The Government guidance states that "it may be just and reasonable for [the intermediary] to retain some or all of the scheme benefit".

The guidance published by the Government includes template letters for use by both the intermediary and their tenant to correspond with each other in relation to the pass-through in their specific situation as well as examples of how to calculate a pass-through benefit.