Utility Cost Recovery Services
Are you looking for reliable and experienced utility cost recovery services? At Arc Partners, we deliver expert Utility Cost Recovery Services that help property owners identify, allocate and recover utility costs from telecommunication operators. We make sure that your telecom installations remain cost neutral, without damaging operator relationships. Contact Arc Partners today to take control of telecom utility costs.
Why Utility Cost Recovery Has Become a UK Landlord Issue?
Utility costs are one of the biggest issues for landlords across the UK and have risen sharply in recent years, leading to dramatically lower rental yields. This is compounded by strict legal limits regarding how quickly landlords must bill service charges, as well as how they can resell utilities.
There are three primary reasons why landlords are facing an enormous amount of pressure to cover utility costs:
- Utility bills are now a major proportion of overall expenses (16% for HMO landlords).
- Landlords are unable to profit from reselling services to their tenants and also face onerous Section 20B (‘time sensitive’) rules that place them at risk of not being able to recover their costs to cover their utilities.
- Every landlord has to pay all of their utilities during void periods.
The current energy crisis is forcing landlords to upgrade their properties to meet the impending 2030 deadline for a minimum energy performance certificate (EPC) rating of C. Increased utility costs are also making it very difficult for tenants to afford their rents, which continues to create a higher level of tenant arrears as well as more risk for landlords.
What Are Utility Cost Recovery Services?
Telecommunication installations in UK commercial properties have changed from being low-impact consumers of electricity to high-impact consumers. The current network infrastructure which supports 4G and 5G continuously operates thereby putting more strain and demand on commercial properties to supply power for this equipment. These costs are frequently paid for by the landlord and not the telecommunications operator. The main commercial considerations are:
24/7 Power Consumption
Telecommunications infrastructure such as masts, cabinets and network rooms are operated 24 hours a day, 7 days a week and have an ongoing power consumption within commercial properties.
Increased Energy Demand from 5G
Newer telecommunications technologies require much higher levels of energy than the previous technologies therefore, each year the electricity consumed per site is increasing.
Increased Costs of Electricity for Commercial Businesses
In the UK, the ongoing fluctuations of energy prices mean that even for some telecommunications usage, the amount of electricity consumed on an annual basis can produce a high level of cost to commercial businesses.
Network Growth Over Time
The volume of electricity used at existing sites is continuously increasing as the telecommunications companies upgrade and densify their networks in accordance with the targets related to connectivity specified by Ofcom.
No Dedicated Sub Meters
Most commercial buildings do not have sub-meters, the landlord is the only entity that has the means to determine how much electricity has been consumed by the telecommunications equipment.
Advantages of Utility Cost Recovery – Who Benefits?
- Power Companies & Property Owners: Win by stabilizing cash flow, reducing financial losses and investing in a better more efficient infrastructure.
- Responsible Tenants/Consumers: Win in that they only pay for what they use, often leaving consumers with smaller bills and a good incentive to conserve, which can reduce usage by up to 35%.
- Environment: Wins as consumption based billing powers energy conservation, lowering the overall demand on resources.
- Integrity: Faster leaks and system failures can be found leading to less waste.
Why UK Landlords Come to Arc Partners
Recouping utilities costs takes knowledge of technical standards and regulations as well as commercial nous. This is where Arc Partners sets itself apart. We offer:
- London based, UK focused expertise
- RICS accredited Chartered Surveyors
- Deep experience with telecom infrastructure
- Clear and client first advice
- Practical solutions and not generic templates
When Are Telecom Utility Costs Worth the Investigation?
Most landlords also procrastinate on reviewing their telecom utility costs, sometimes until their bill spirals out of control. In fact, the reviews should be active.
We recommend a review when:
- New 4G and 5G gear is deployed
- Existing installations are upgraded
- Electricity costs rise noticeably
- Leases are renewed or renegotiated
- Not reviewed in the past 12 months
How Arc Partners Recover Utility Costs for UK Property Owners
The approach taken by Arc Partners allows for an organized, clear cut method of helping landlords in the UK receive utility cost recoveries appropriately and in adherence with regulations. Our utility expense recovery methods include:
- Utility provision audits: Determining if telecommunications equipment is located on the landlord’s electric provision, and the extent of usage.
- Accurate metering or reasonable estimation: Providing meter or in cases where provision for metering is not practical, estimating real estate’s usage as per telecommunications equipment specs & operating hours.
- Lease and agreement review: Reviewing telecommunications leases to ensure compliance with the provisions of the agreement(s), ensuring that Utility Costs Relayed to Landlords’ Utilities Are Accurately Allocated.
- Assistance with cost recovery and invoicing: Assisting to ensure verifiably accurate and consistent monthly or quarterly billing
- Continuous monitoring and reconciliation: Reviewing utility consumption regularly to maintain accuracy and to minimize disputes.
Utility Cost Recovery Services FAQ’s
Who pays for the power consumed by telecom kit in Britain?
In the majority of UK instances, it is the incumbent telco which is at fault. Yet, many older leases do not have clear provisions in them and landlords often end up footing these bills unless these leases are reviewed by a professional and amended.
Are utility costs recoverable for past periods?
In some cases, yes. With lease terms and site history factored in, general utility costs can be recovered historically. This is something that needs to be studied carefully and negotiated by professionals with the service providers.
How does cost recovery of utilities relate to UK telecom policy?
Recovery of costs for utilities needs to function within and comply with the ECEC, and look at Ofcom guidance, which is all about fair treatment across both landlords and operators.
Would you see the influence of utility cost recovery on telecom leases?
Landlords can generally recover utilities to improve their lease clarity, rather than disrupt it. Unambiguous utility clauses reduce potential conflicts and put landlords as well as telecom operators on a safe footing in the future.
Is utility cost recovery appropriate for small property portfolios?
Yes. Just one telecom install creates high recoverable costs on a property, so the service is attractive for both single landlords and their larger counterparts.
How much time does it take to recover the power bill amount?
With our initial audits, it’s usually a couple of weeks (site complexity variable). Once in place, cost recovery is a part of how business happens.
Get A Grip on Telecom Utility Expenses
Schedule A Consultation To Recover the Costs of Utilities Through Utility Cost Recovery!
Contact Details
Address – 21 Abbeville Mews, 88 Clapham Park, LONDON SW4 7BX
Phone Number – 020 3689 0282
Email – enquiries@arcpartners.co.uk
