I've been given a contract that says 3000 per annum cap on utilities for the whole building, which has 5 bedrooms. It states this cap includes "electricity, water, sewerage, and the Building’s Council Tax liability".

Council tax is around 1675 a year.

That leaves 1325 for electric, water and sewerage. Across 5 people that would be 265. Or 22.08 a month.

Having lived in a one bed flat before, that seems comically low. Just a 10 minute electric shower is apparently £0.43 on average, so if showering once per day it's 13.08 a month, assuming 10 minute showers and only one shower a day (I do evening sporting activities 5 days a week that leave me very sweaty). Apparently flushing a toilet costs 0.04. So if flushing a toilet four times a day, that's 58.4 per year, or 4.87 a month, taking the total to 17.95.

If cooking on electric hobs, apparently it's 10p per 30 min per ring. So time-efficiently making pasta and sauce from scratch would be 45 minutes of hob use, or £0.15. Which is £4.56 per month, taking the total to £22.51.

That's already over the cap. Then you have any cost of lighting, running water (washing hands, drinking water), extractor fans (windowless bathrooms) and if anyone uses the electric heater in each room.

There's no fridge for now, but there is a space for one. That would drive the electricity cost up. Likewise there's no washing machine, but there is space for one.

Am I misunderstanding? Even £3000 non-inclusive of Council Tax is 50 per month per person, which would seem low.

Am I being low IQ, or are landlords and letting agents horrifically low IQ? Most of them seem to be, if you've ever seen them attempt repairs themselves or try to lie about things (eg "you've caused this damage" and then you pull out date-stamped photos of the "damage" always having been there. Or "you've never emailed about this disrepair" and then you pull out multiple email evidences and the ombudsman rules against the agent).