Payment on account

Payment on account

Your rental contract states whether you have to pay on account usage.
Payment on account is an advance payment of a fixed amount that is later settled in full. If you pay for consumption on account, the landlord settles the consumption with the utility company. You pay a fixed amount each month, which corresponds to your expected consumption. The landlord prepares an annual statement showing how much you have paid on account, your actual consumption and the actual costs.

If there's a difference, you'll either have to pay extra or get a refund, depending on whether your spend was higher or lower than your instalment payments.

The down payment amount is determined based on the landlord's estimate of utility costs, often based on previous tenants' consumption. The landlord can adjust the monthly instalment with 6 weeks' notice if it turns out to be too high or low. Typically, water and heating are paid on account, while electricity is settled directly with the utility company.