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Disclaimer: Educational purposes only. Not legal advice. Consult a qualified NZ legal practitioner for your specific circumstances.

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tenancy

Who pays for gas and electricity in a rental?

Key Takeaway

In New Zealand residential tenancies, who pays for electricity and gas typically depends on the **residential tenancy agreement**. While the landlord is responsible for maintaining utility infrastructure, tenants usually pay for their consumption directly to providers, unless the agreement explicitly states these costs are included in the rent. Disputes can be resolved by the Tenancy Tribunal.

Understanding Utility Payments in Residential Tenancies

In New Zealand, the responsibility for paying for utilities such as electricity and gas in a residential rental property is primarily determined by the residential tenancy agreement. A residential tenancy agreement is a legally binding contract between a landlord and a tenant that sets out the terms and conditions of a tenancy [Source: Residential Tenancies Act 1986, s 13(1)]. A landlord is the owner of premises who grants a tenancy, and a tenant is the person to whom a tenancy is granted [Source: Residential Tenancies Act 1986, s 2(1)].

General Rule: Role of the Tenancy Agreement

While the Residential Tenancies Act 1986 (RTA 1986) does not contain a specific section dictating who must pay for a tenant's consumption of electricity and gas, this responsibility is established through the terms of the residential tenancy agreement [Source: Residential Tenancies Act 1986, s 13(1)].

If the residential tenancy agreement explicitly states that electricity and/or gas charges are included in the rent, then the landlord is responsible for paying these utility providers. Rent includes all money payable by the tenant to the landlord under the tenancy [Source: Residential Tenancies Act 1986, s 16(1)]. In this scenario, the cost of utilities is covered by the overall rent payment made by the tenant to the landlord.

Conversely, if the residential tenancy agreement states that the tenant is responsible for electricity and gas charges, or if the agreement is silent on these specific utility payments, tenants typically arrange and pay for these services directly to the utility providers. The landlord's responsibilities, as outlined in the Residential Tenancies Act 1986, primarily relate to the maintenance and repair of the premises and compliance with health and safety standards, and do not include the payment for ongoing utility consumption by the tenant [Source: Residential Tenancies Act 1986, s 45(1)].

Landlord's Obligations Regarding Utility Infrastructure

Even though tenants usually pay for their consumption, landlords have certain obligations related to the provision and safety of utility infrastructure within the rental property. These include:

  • Providing and maintaining premises: A landlord must provide the premises in a reasonable state of cleanliness and provide and maintain the premises in a reasonable state of repair [Source: Residential Tenancies Act 1986, s 45(1)(a), s 45(1)(b)]. This extends to the wiring, gas pipes, and other fixed installations necessary for the supply of electricity and gas.
  • Complying with health and safety standards: A landlord must comply with all building, health, and safety standards that apply to the premises [Source: Residential Tenancies Act 1986, s 45(1)(c)]. This includes ensuring that electrical wiring and gas fittings meet current safety standards.

Tenant's Obligations Regarding Utilities

When a tenant is responsible for paying for electricity and gas:

  • Payment: The tenant must pay for the electricity and gas consumed, usually by setting up accounts directly with utility providers.
  • Responsible use: The tenant must not damage the premises and must keep them reasonably clean [Source: Residential Tenancies Act 1986, s 39(1)(b), s 39(1)(c)]. This implies responsible use of all services and appliances powered by electricity or gas.

Unmetered or Shared Connections

If a property's electricity or gas supply is not separately metered for individual tenancies (e.g., in some multi-unit dwellings), passing on specific consumption costs to tenants can be complex. In such cases, the landlord typically covers the utility costs unless there is a clear, written agreement within the residential tenancy agreement for a fair and reasonable method of apportionment, or the costs are explicitly included within the rent [Source: Residential Tenancies Act 1986, s 13(1), s 16(1)]. Without a separate meter, it is difficult to accurately attribute consumption to an individual tenant.

Resolving Disputes

If there is a dispute between a landlord and tenant regarding the payment for electricity or gas, either party may apply to the Tenancy Tribunal for resolution. The Tenancy Tribunal has jurisdiction to determine disputes between landlords and tenants [Source: Residential Tenancies Act 1986, s 77(1)].

When to Seek Independent Legal Advice

It is recommended that individuals involved in a residential tenancy dispute or those seeking clarity on their specific rights and obligations regarding utility payments consult with Tenancy Services or Community Law Centres for guidance. These organisations can provide information on New Zealand tenancy law, assist with understanding the terms of a residential tenancy agreement, and offer advice on navigating potential disputes. Community Law Centres

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