Who is Responsible for
EICR on Commercial Property

Who really pays for commercial EICRs in UK leases

Commercial EICR responsibility is a frequent source of UK landlord-tenant disputes. The answer depends on the specific lease type, what's written in the lease document and which parts of the property need testing. Always check the lease before incurring costs.

Lease type 1: Full Repairing and Insuring (FRI) - tenant responsible.

• Most common UK commercial lease. Especially for whole-building lets.
• Tenant covers all repairs. Including electrical installations.
• Tenant arranges and pays for EICR. Of the demised premises.
• Tenant addresses any remedials identified. Within timeframes specified.
• Tenant keeps records. Provides to landlord on request and at lease end.
• Schedule of dilapidations at lease end. Tenant must hand back in good order.

Lease type 2: Internal Repairing and Insuring (IRI) - split.

• Common for multi-tenant buildings. Office blocks, retail parks.
• Landlord covers structural electrical installation. Up to consumer unit, distribution boards.
• Tenant covers internal additions. Tenant-installed sockets, lighting, IT cabling.
• EICR responsibility split. Landlord arranges main building EICR, tenant arranges demised EICR.
• Coordination needed. Both parties' EICRs together cover full property.
• Common parts. Always landlord responsibility.

Lease type 3: Short-term licence or serviced office - landlord responsible.

• Serviced offices (Regus, WeWork etc). Landlord retains all responsibility.
• Short licences (under 6 months typical). Landlord retains all responsibility.
• Tenant uses electrical installation but doesn't maintain. Just plugs in equipment.
• EICR cost included in service charge. Or absorbed by landlord.
• Tenant may have PAT testing duties. For their own equipment.

Common parts - always landlord:

• Building entrances and lobbies. Including security systems.
• Shared corridors and stairwells. Lighting and fire alarm.
• Lift installations. Including emergency call systems.
• Plant rooms. HVAC, water heating, central electrical.
• External lighting. Car parks, exterior building.
• Shared toilets and kitchens. If part of common areas.
• Landlord arranges EICR for these regardless of lease type.
• Cost typically passed through service charge.

Health and Safety at Work Act 1974 duties:

• Applies to both landlord (occupier of common parts) and tenant (employer).
• Cannot be transferred by lease - statutory duty remains.
• Employer must ensure electrical safety of workplace.
• Reasonable steps include periodic electrical testing.
• EICR is the standard method of demonstrating compliance.
• HSE can prosecute either party for breach.
• Lease terms determine who arranges EICR but cannot remove statutory duties.

Electricity at Work Regulations 1989:

• Specific duties on employers for electrical workplace safety.
• Regulation 4: 'so far as is reasonably practicable' to maintain electrical systems in safe condition.
• Periodic testing required.
• Record keeping required.
• Tenant typically becomes 'duty holder' under these Regulations during occupation.

Reading your commercial lease for EICR clauses:

• Repairing covenants. Look for language about 'electrical installation' or 'fixed wiring'.
• Service charge provisions. May include allocation of EICR costs.
• Schedule of fixtures and fittings. Identifies what tenant inherited.
• Yielding up clause. What tenant must hand back at lease end.
• Statutory compliance. Often required of tenant.
• Inspection rights. Landlord's right to inspect electrical installation.
• Get solicitor advice if unclear about responsibilities.

Common UK commercial EICR scenarios:

• Single retail unit on FRI lease. Tenant arranges and pays for EICR.
• Office in multi-tenant building. Landlord arranges common parts EICR. Tenant arranges demised EICR. Costs split.
• Industrial unit with own substation. Tenant typically responsible. Specialist commercial EICR.
• Restaurant with kitchen. Tenant responsible for kitchen electrical (often shorter retest period).
• Warehouse with offices. Tenant typically responsible. May need specialist testing for racking installations.
• Pub or hotel. Operator (tenant) typically responsible. Higher risk environment.

Cost allocation in service charges:

• Common parts EICR cost typically passes through service charge to all tenants.
• Service charge usually based on floor area proportion.
• Cost spread annually rather than charged in full at EICR year.
• Service charge accounts must be itemised - check yours for electrical testing line.
• RICS Code of Practice for Service Charges in Commercial Property applies.

What if dispute arises about EICR responsibility:

• Step 1. Re-read the lease document carefully.
• Step 2. Get legal advice if unclear (£200-£500 commercial property solicitor).
• Step 3. Discuss with the other party in writing.
• Step 4. Consider mediation if no resolution.
• Step 5. Court action as last resort.
• Practical approach. Agree to share cost rather than dispute. EICRs cost £300-£1000 - dispute costs more.

What to do as a commercial tenant:

• Read the lease. Understand your repairing obligations.
• Check current EICR status. Request from landlord if recent.
• Schedule before expiry. Allow 1-3 months for new EICR.
• Use registered electrician. NICEIC, NAPIT, ELECSA, STROMA.
• Document everything. Keep records of EICRs and any remedials.
• Inform landlord. Of any major electrical work or significant defects.
• Plan for end of lease. Schedule of dilapidations may include EICR.

What to do as a commercial landlord:

• Arrange common parts EICR. Schedule every 5 years typically.
• Inspect tenant's installation. Annually or as lease permits.
• Request copies of tenant EICRs. As lease entitles you.
• Service charge allocation. Document costs fairly per RICS Code.
• End of lease inspection. Check tenant's EICR record. Schedule of dilapidations.
• Insurance compliance. Maintain evidence of testing for insurance.
• HSE compliance. Document common parts compliance.

Specialist commercial environments:

• Restaurants and commercial kitchens. 3-5 year EICR. Higher risk from heat and moisture.
• Hotels and B&Bs. 5 year EICR. Higher risk due to public access.
• Schools and care homes. 5 year EICR. Stricter due to vulnerable occupants.
• Retail with high electrical loads. Possibly 3-5 years.
• Industrial premises with machinery. 3-5 years. May need additional machine testing.
• Petrol stations. Annual EICR. High-risk environment.
• Construction sites. 3-month EICR for temporary installations.

Knowing commercial EICR responsibility helps UK landlords and tenants avoid disputes and stay compliant. Our full EICR Help hub covers EICR cost, validity periods, legal requirements and broader electrical inspection guidance for UK homes and businesses.