This case deals with occupiers of mobile homes on permanent pitches in a caravan park.
The caravan park owner charged the occupiers for the provision of gas, electricity and sewage to pitches. The occupiers disputed the charge levied by the park owner for gas, electricity and sewages services as they argued those charges represented the additional costs to the park owner of providing, administering and maintaining those services and not merely the cost of the electricity, gas and sewage used by the occupiers.
It was held by the Court of Appeal that to remunerate the park owner for work done and services performed by or on behalf of the park owner, provision for a service charge by a separate and self-contained promise or covenant by the occupier to pay specified costs and expenses incurred by the park owner was required.
Another option would be to recover costs and expenses incurred by the park owner as part of the site fee. However, the amount that would be recoverable would have to be agreed with the occupiers in advance or in the absence of such agreement, the amount would be determined by the First Tier Tribunal as to what is reasonable under the provisions for review provided for by the Act.