N.C. Gen. Stat. § § 42-42.1
Water, electricity, and natural gas conservation.
Operative Text
(a) For the purpose of encouraging water, electricity, and natural gas conservation, pursuant to a written rental agreement, a lessor may charge for the cost of providing water or sewer service to lessees pursuant to G.S. 62-110(g), electric service pursuant to G.S. 62-110(h), natural gas service pursuant to G.S. 62-110(i), or for electricity or natural gas used by a central system pursuant to G.S. 62-110(j). (b) The lessor may not disconnect or terminate the lessee's electric service, water or sewer services, or natural gas service, nor may the landlord terminate the lessee's receipt of the benefits of the use of a central system, due to the lessee's nonpayment of the amount due for electric service, water or sewer services, or natural gas service. (2004-143, s. 4; 2011-252, s. 2; 2017-10, s. 2.2(a); 2017-172, s. 1; 2021-23, s. 27(a).)
North Carolina General Statute § 42-42.1 establishes a framework under which landlords may bill tenants directly for water, sewer, electricity, or natural gas costs—but only when a written rental agreement authorizes such charges and the billing follows the methods outlined in the referenced utility statutes. The provision also sets a firm limit: a landlord cannot cut off a tenant's utility service—or their access to a shared central system—as a way of collecting unpaid utility charges. These two rules work together to define both the permissible scope of utility billing and the remedies that are off the table when a tenant falls behind.
Plain English — not legal advice.
Under N.C. Gen. Stat. § 42-42.1, property owners who wish to pass utility costs through to tenants must ensure that any such arrangement is documented in a written rental agreement and that the billing method conforms to the applicable subsections of G.S. 62-110. Compliant operators generally keep clear records of how utility charges are calculated and disclosed to residents. Critically, regardless of whether a tenant has an outstanding utility balance, a landlord may not disconnect or terminate electric, water, sewer, or natural gas service—or cut off access to a central system—as a collection tool; other legal remedies would need to be pursued instead.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.C. Gen. Stat. § 42-42.1 gives tenants a meaningful protection: even if you owe money for utility charges billed by your landlord, the landlord is prohibited from shutting off your electricity, water, sewer, natural gas, or access to a shared central system to pressure payment. If a landlord attempts such a shutoff, that action may constitute a violation of this statute, which tenants can raise as a defense in court or as the basis for a complaint. Tenant-rights organizations in North Carolina can help residents understand what options may be available when this provision appears to have been violated.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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