Hope for nearly half a million households hit by huge energy bill rises under new price cap rules
HOPE is on the horizon for nearly half a million households who have been hit by huge energy bill rises.
New plans have been introduced which means fairer pricing for heat network customers.
Many households who are on communal heat networks are on a low income.
Yet they are being stung with hefty energy bills, just as everyone else’s has started to come down.
This is because buildings with heat networks usually buy up energy far in advance.
What’s more, these homes are also excluded from the energy price cap that limits the typical dual fuel bill at £2,074 a year.
Some people on heat networks have been hit by huge price rises of as much as 350%.
It’s estimated 480,000 homes are impacted, and many residents are in council-owned tower blocks.
However, under new plans unveiled by the government today that could all be about to change.
Under the new proposals homes and businesses supplied by heat networks would be covered by the price cap on energy bills in future.
Vulnerable customers in these homes should be better protected too, as heat network operators would be required to keep a register of these customers.
But, the changes are not expected to come in until 2025.
That’s when the regulator Ofgem will be able to step in where homes are subject to disproportionate pricing, poor customer service and poor reliability.
Ofgem would be able to take action such as imposing fines for poor service and ensuring that compensation is paid to customers for any outages.
Lord Callanan, minister for energy efficiency and green finance, said: “We’re investing millions to build new heat networks and provide low-cost heating to communities across the country.
“It’s only right we ensure consumers are properly protected, pay a fair price for their energy, and are given the best service possible.”
Help with bills for communal heating homes
Sadly, cutting back your energy use won’t impact costs for people in a communal heating network because the bill is divided by all the homes regardless of usage.
However, if you are concerned your supplier has not passed on government support, you can complain.
Under the upcoming Energy Bill, Ofgem is the heat networks regulator and will have powers to investigate and intervene on networks where prices for consumers appear to be unfair.
One source of help for households could be the Household Support Fund.
This is a pot of money available to vulnerable households in England.
The cash is paid out through local councils which set the criteria for accessing the support.
It means whether you qualify and the level of cash you can get varies depending on where you live.
For example, residents in Warrington eligible will receive a minimum of £190 over the year thanks to the payments.
In North Yorkshire, thousands of locals received electronic supermarket vouchers worth up to £325.
Buckinghamshire Council has also extended support after receiving £4.8million for April 1, 2023 to March 31, 2024.
And residents in North Norfolk District Council are also set to get a fourth round of the HSF from April 1, 2023, to March 31, 2024.