- The surge in energy costs is filtering through to low-income households on shared heat networks.
- Residents in council homes and private flats with communal heating systems are experiencing a “nightmare” rise in their energy bills, with households scrambling to fund increases of up to 350%.
According to government data, an estimated 480,000 households nationwide are affected as last autumn’s energy price surge filters through this financial year’s bills. Many live in council-owned tower blocks, which house some of the lowest-income families in the country.
Simon Francis, the coordinator of the End Fuel Poverty Coalition, said: “Many people on heat networks are among the most vulnerable households. They deserve greater protection from the worst of the energy crisis because they cannot switch suppliers. Seeing these people facing huge increases to their bills is incredibly concerning.”
They were told in a letter from the building owner, Swan Housing; the heating tariff would rise from 2p a kilowatt hour to 22p from mid-April. Standing charges, fixed and must be paid even when no energy is used, have also increased. The changes mean the average heating bill will rise from about £16 a month to £57.
In a statement, Lambeth Council, which is Labour-controlled, said: “Last year, the council’s long-term contracts meant we were able to keep costs low for residents, compared to the huge increases in prices for people with private heating. Unfortunately, these contracts are over, and costs have increased in line with the bills that most people in the country have faced in the last year.”
A spokesperson for Swan Housing Association said: “There has been a significant rise in heating costs nationally that has led to an increased charge to residents for communal energy. “To keep these costs as low as possible, we procure communal gas and electricity in advance through Laser Energy, securing a lower than domestic market price. We understand the pressure of rising costs of living and our dedicated welfare benefits team is available to support residents struggling to make payments.”