Marinas in the United Kingdom are currently legally prohibited from making a profit on berth holders’ electricity usage, something which the industry group British Marine argues is stifling investment into better power supply and metering.
As marinas around the world continue to invest in better shore power infrastructure, a key question is attracting increasing attention in the British market, where marina operators are currently legally prohibited from making a profit on supplying electricity to their berth holders: Can operators recover the costs of that investment through electricity charges?
The answer is not straightforward, but under the current UK electricity resale framework there is growing recognition that supplying electricity involves much more than simply passing on the cost of energy purchased from a supplier.
This issue is now under renewed scrutiny following a review by the British energy regulator, Ofgem, of the Maximum Resale Price (MRP) framework, which governs how electricity can be resold by site operators and landlords.
Ofgem's Maximum Resale Price (MRP) framework was originally introduced to protect consumers from unfair energy resale practices by ensuring electricity is not sold at excessive profit. While the principles remain important, the role of electricity within marinas has changed significantly since the framework was first introduced.
Today's marina operators are increasingly expected to provide modern utility services, including smart metering, shore power, electric vessel charging and digital billing systems, and these services require substantial investment in infrastructure and ongoing operational support.
The cost of supplying electricity
For marina operators, supplying electricity involves far more than purchasing energy from a supplier. It also requires investment in electrical distribution infrastructure, shore power systems, metering equipment, smart metering technology, billing and payment platforms, communications networks, compliance, maintenance, and ongoing customer administration and support.
As berth holders and marinas consume increasing amounts of electricity, these costs are becoming more significant. This is one reason why Ofgem's review has attracted considerable attention from sectors that rely on electricity resale, including marinas.
The energy landscape has changed dramatically in recent years. Smart metering, EV charging, battery storage, flexible tariffs and broader electrification are becoming increasingly common across commercial and leisure environments. Recognising these changes, Ofgem launched a review of the MRP framework to assess whether the current rules continue to deliver fair outcomes for consumers while supporting investment in modern energy infrastructure.
Consumer groups including Consumer Scotland and Citizens Advice have also contributed to the discussion, highlighting the importance of transparency, accurate billing and consumer protection as the framework evolves. Their responses reinforce the importance of ensuring that consumers understand how electricity charges are calculated, while also recognising the need for a regulatory framework that reflects the realities of modern energy infrastructure.
The marina industry has also engaged directly with the consultation process. British Marine, which represents the UK's marina and leisure marine sector, submitted a response highlighting the challenges operators face as they invest in modern energy infrastructure.
As marinas continue upgrading facilities to support shore power expansion, smart metering systems, electric vessel charging, low-carbon technologies and digital utility management, there is growing recognition that regulatory frameworks must balance consumer protection with the need to encourage investment. British Marine's response to Ofgem's consultation highlights the need for a regulatory framework that can do both.
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Why smart metering is becoming increasingly important
Many marinas still rely on manual meter readings, estimated billing or legacy utility systems. While these approaches may have been sufficient historically, they can create challenges around billing accuracy, transparency and operational efficiency.
Smart metering provides a more transparent approach by enabling operators to bill based on actual consumption, provide customers with visibility of energy usage, reduce disputes, eliminate estimated charging, improve operational oversight and support future electrification projects. For berth holders, this can provide greater confidence that charges reflect actual usage. For operators, it can improve billing accuracy and reduce administrative workload.
One of the key themes emerging from Ofgem's review is indeed transparency. After all, the current regulatory framework enforces a blanket ban on electricity resale at a greater-than-wholesale cost instead of encouraging transparency to drive investment. The role that more transparent smart metering solutions can play in this emerging dynamic is therefore clear.
Usage-based charging models, where electricity is billed according to actual consumption using a clearly defined per-kWh rate, provide a straightforward and auditable approach. Smart metering gives both operators and berth holders complete visibility of how electricity is being used and how charges are calculated, helping to build trust while improving billing accuracy.
However, the cost of delivering electricity extends beyond the wholesale price of energy. Marina operators must also invest in electrical infrastructure, metering hardware, software platforms, communications, maintenance and ongoing administration.
This is why British Marine has argued that the current framework should be updated to recognise the genuine costs of providing modern electricity services. In its response to Ofgem's consultation, the association states:
"Without an exception for marine resellers, or an adjustment to the MRP framework that would allow marine resellers to make a reasonable return on investment for the capital and operation costs required for future marine charging infrastructure, the MRP will continue to deter the level of private sector investment needed for marine decarbonisation."
A transparent charging model that allows operators to recover reasonable infrastructure and operational costs, clearly separated from the cost of electricity itself, would help encourage continued investment while maintaining fairness for berth holders. Smart metering plays a critical role by providing the accurate usage data and visibility needed to support this approach.
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Looking ahead
Electricity demand within marinas is expected to continue growing as shore power usage increases and new forms of electrified boating emerge. At the same time, marina operators are being asked to invest in infrastructure that supports decarbonisation, improves customer experience and prepares sites for the future.
For that investment to continue, operators need confidence that they can recover not only the cost of the electricity they purchase, but also a fair proportion of the infrastructure and operational costs required to deliver it.
A reformed Maximum Resale Price framework that permits transparent, reasonable cost recovery, supported by accurate smart metering and usage-based billing, would help strike the balance between consumer protection and long-term private investment.
As Ofgem considers the future of electricity resale, the opportunity is not simply to modernise regulation. It is to create a framework that encourages investment in smarter, more sustainable marina infrastructure while ensuring berth holders continue to receive fair, transparent and accurate electricity charges.
