Eliminating Double Charging for Significant Savings

This month has been dubbed ‘Awful April’  because a raft of everyday household bills are increasing.  This is also true for commercial occupiers.  We recently tackled a critical issue of utility double charging for a supermarket client.  Danielle Harris identified that the managing agent was recharging demised electricity through both the service charge budget and as a direct charge.  Once this was successfully removed, it resulted in substantial savings of over £100,000.

Our Approach:

• Thorough Review:  We meticulously reviewed all Budgets and Reconciliations in line with the client’s lease terms.

• Initial Query:  We questioned the electricity costs in the 2018/19 Budget, which were unexpectedly high.

•  Client’s Lease:  Our client’s lease excluded demised costs, prompting us to request their removal from the service charge budget.

• Direct Charges:  Our client confirmed they were already being charged directly for demised electricity consumption.

Outcome:

• Year-End Adjustments:  The managing agent agreed to remove demised electricity from the year-end accounts, resulting in a significant balancing credit.

• Persistent Efforts:  Despite corrections at year-end, subsequent Budgets continued to include demised electricity.  We ensured year-end reconciliations excluded these charges, securing further credits and providing confidence for our client.

• Long-Term Success:  After four years of persistent efforts, the managing agent finally stopped including demised electricity costs in the budget, significantly reducing quarterly charges.

• Result:  Over £100,000 in total savings for our Client!

Get Control of Your Occupancy Costs

If you are an occupier looking to gain control over your occupancy costs, the team at Assure Consulting are here to help.  With our expertise and proactive approach, we can uncover opportunities for savings and ensure fairer allocations for your service charges.  To get started, simply fill out the contact form below, and one of our specialists will be in touch to discuss how we can assist you.