Marina electricity charges

[mainsail1]

I have just had the first electricity bill from my new Marina on the Clyde. They have charged me for the electricity which is fine but they have also charged me a rate per kw for 'service' and this rate doubles the unit rate for electricity.
I seem to remember that my old marina in the Solent decided they could only charge me the actual cost of the electricity because of some recent (maybe 2 or 3 years ago) legislation.
Does anyone know if it is legal to charge a service charge on metered units of electricity these days?
Incidentally, I supply the meter and all they do is read it..

 

[GrahamM376]

https://www.ofgem.gov.uk/ofgem-publications/74486/11782-resaleupdateoct05.pdf

 

[mainsail1]

Thanks, I read that before but it is vague on 'service charges' as far as I can see

 

[macd]

I suspect an effective doubling of the kw rate would be considered excessive unless the usage was very small. Maybe a call to Trading Standards?

 

[pvb]

Does anyone know if it is legal to charge a service charge on metered units of electricity these days?

Yes, they can add a service charge. My marina charges £18 a quarter as a "service charge", plus electricity at 12.2p per unit.

 

[yotter]

I am charged at my Clyde marina a reasonable and competitive rate per kWh. I am also charged a monthly fee for having the power lead connected. Unfortunately the modest monthly fee is normally higher than the kWH used each month, must try harder! I would assume this is the same as being charged a standing charge for power at home, so completely legal. I have not heard of the kWH rate being effectively increased to fund the service.
Angus

 

[PeterWright]

At a price like 12.2p/ kWh your marina is charging you no more for energy than they are paying to their supplier. In addition, the marina will have invested vast sums in copper to allow 16 A to flow to each and every socket along each pontoon. They have also invested in circuit breakers and residual current devices to protect each of those outlets. A fee of £18 per quarter will not touch the task of servicing the capital tied up in making the supply available and so can be seen as better than reasonable. The fact that most yachts require a 16A supply, but rarely use much energy is just a feature of how yachts are used. If that makes the energy charge lower than the service charge, just be happy that the energy charge is so low.

Yes, I am involved in a marina business.

 

[mainsail1]

I would be interested to know what level of 'service charge' you think would be reasonable. I am being charged the same rate per unit on the electricity as the service charge.

 

[ditchcrawler]

My marina also charge the low rate for units and a standing charge per quarter of circa £18 presumably to cover the fixed installation costs. The only bad bit is that they charge in fixed quarters so if you have electricity for 1 day in april you pay the whole standing charge. Some of us have electricity from 1st october until 31st march for this reason.

 

[temptress]

When we lived aboard in the UK the service charge for delivering the power was often higher that our monthly use. But the total was still way below our 3 bedroom house.... Recently we have been charged Gbp 9 per day for electricity as a minimum for 1kw per day and then metered to see if we exceed that so they can change us 15gbp per kW or part thereof as well.

 

[Vanilla]

For comparison - Haslar marina charge an all in price of 15p or maybe 15.5p?? kwh

 

[mainsail1]

Thanks for all the replies. I have used about 600 units of electricity in about six weeks. The marina has sent me my first bill and is charging me about 10.5pence per unit for the electricity and about 11pence per unit extra for 'service'.
Is that reasonable?

 

[pvb]

Thanks for all the replies. I have used about 600 units of electricity in about six weeks. The marina has sent me my first bill and is charging me about 10.5pence per unit for the electricity and about 11pence per unit extra for 'service'.
Is that reasonable?

I think the problem is that you're using a lot more electricity than the averager user, and the marina's service charge was no doubt calculated on the basis that people would generally use much less electricity. On that basis, have you discussed the charge with the marina manager?

 

[iain789]

Thanks for all the replies. I have used about 600 units of electricity in about six weeks. The marina has sent me my first bill and is charging me about 10.5pence per unit for the electricity and about 11pence per unit extra for 'service'.
Is that reasonable?

Standard British Gas Tariff for my most recent household bill worked out at about 15p per kWh so on that basis probably not unreasonable, given the high fixed costs which the marina has. My most recent marina leccy bill (I suspect for the same marina as you are in) was for 93 units at the same price per unit as you quote.

 

[TallBuoy]

Thanks for all the replies. I have used about 600 units of electricity in about six weeks. The marina has sent me my first bill and is charging me about 10.5pence per unit for the electricity and about 11pence per unit extra for 'service'.
Is that reasonable?

If it's a half decent marina they should have published the service charge on their List of Prices, so you could decide in advance if it's reasonable value and hence how much to use.

The other factor will be VAT - its 5% on the units and 20% on the service charge.

The marina I ran had a fixed service charge, i.e. £75 pa, regardless of how much the customer used.

 

[mainsail1]

That's the problem. They don't seem to publish the service charge rate so I was caught out. The more I think about it the more I think it is unreasonable. In a winter alongside I guess my service charge will amount to over £250 plus VAT.

 

[ribdriver]

They are not allowed to make a profit on it, units or service charge. Therefore to apply a 'per unit' service charge COULD be making a profit if you are a heavy user. If you use say 2000 units and a.n.other only uses 100, the service costs are actually the same - it costs the marina no more to 'facilitate' the service to you than to the a.n.other. It's just the unit or consumption costs that vary. (Assuming like for like single 16A connection - bit different for say a 16A vs three phase super yacht supply!)
Therefore Some marinas apply a per unit service charge but with a cap on it of say £100 per annum, or a flat rate.

 

[Boathook]

Mines 12p / unit and 5p / unit service charge and then the dreaded VAT is added. I have only used 63 units since June so it's not to bad. The yard does have to invest in all the wire to each meter point and also the meters so there is a considerable cost for the yard to set up and then maintain.

 

[mainsail1]

It seems to me that the electrical infrastructure would be put in as part of the capital cost of the marina and that should be taken into account in the marina fees, not as a 'service charge'. In the marina I am berthed you have to provide your own meter so no extra cost for them there.

 

[ribdriver]

They can charge for reading and administering though.