My L&Q utilities - Am I being ripped off?

BobbyBanana123

Hi,
Can anyone shed some light on the following charges from my L&Q landlord for heat and hot water as they seem high but I have no idea how they compare to other utility co's. They supply the whole building from a central gas supply so it's not direct from the supplier and use a billing agent ISTA. The charges are as follows:

48p/day standing charge +VAT (about 56p/day inc. VAT)
6.8p/kW + VAT (7.5p incl VAT).

My charge for ISTA for 5 months use of the property is £211.00 - is for heat and hot water only. (£1.43/day)

On top of this I have an electricity bill for £160.16 for 5 months. This is billed direct from SSE. (£1.00/day).

This means I'm paying £2.43/day to power a small energy efficient one bedroom flat where I don't use much electricity - no tumble dryers or heaters etc..) Just the usual appliances. Does this seem a lot? My old place same size same gadgets etc cost about £1.20/day. I would have thought a more modern flat would be more efficient and therefore cost less not more (it's a new build).

Does this seem fair or am I being overcharged/ripped off does anyone know? If this is more than normal I think this is scandalous as L&Q are housing association and government regulated.

System

BobbyBanana123 wrote: »

Hi,
Can anyone shed some light on the following charges from my L&Q landlord for heat and hot water as they seem high but I have no idea how they compare to other utility co's. They supply the whole building from a central gas supply so it's not direct from the supplier and use a billing agent ISTA. The charges are as follows:

48p/day standing charge +VAT (about 56p/day inc. VAT)
6.8p/kW + VAT (7.5p incl VAT).

My charge for ISTA for 5 months use of the property is £211.00 - is for heat and hot water only. (£1.43/day)

On top of this I have an electricity bill for £160.16 for 5 months. This is billed direct from SSE. (£1.00/day).

This means I'm paying £2.43/day to power a small energy efficient one bedroom flat where I don't use much electricity - no tumble dryers or heaters etc..) Just the usual appliances. Does this seem a lot? My old place same size same gadgets etc cost about £1.20/day. I would have thought a more modern flat would be more efficient and therefore cost less not more (it's a new build).

Does this seem fair or am I being overcharged/ripped off does anyone know? If this is more than normal I think this is scandalous as L&Q are housing association and government regulated.

L&Q may be Government regulated but I doubt that their heating supply is covered by Ofgem which acts on behalf of the Government in relation to energy matters. District Heating systems which L and Q's website suggests might apply to you are a source of much ire amongst those who have no option but to use them. Governments of all colours have promoted District Heating schemes as a way of meeting our Climate Change obligations.

In truth, you cannot make a simple compare now and then on price. Your energy cost includes the cost of plant maintenance and ultimately plant replacement. As a homeowner, I have to pay for a new boiler whenever my present boiler has reached its end of life.

Your best bet is to raise this matter within your Residents' Association (if you have one).

https://conversation.which.co.uk/home-energy/district-heating-schemes-choice-regulation-ofgem-renewable-energy/

Smodlet

Hi and welcome. Presumably you knew it was a district heating scheme before you moved in and that you would therefore be stuck with whatever charges L & Q felt like imposing with no option to go elsewhere. I think, unless you can prove you were misled, your only options are to suck it up or move somewhere without such a scheme so you can choose from the whole of the market like the rest of us.

Perhaps your rent is extremely reasonable or your travel costs are low or you really love where you are, I don't know. Unless there is/are factors to counteract the inconvenience and cost of being stuck with these charges, you might want to consider moving. Maybe a pros and cons list could be of use but ultimately, if you are in a district heating scheme, the choices are stay or go... Or hope they abolish it one day and allow occupiers to choose their own providers.

Sorry but "fair" does not come into it. It is what it is. If you want to know how their charges compare with other utility companies, I suggest you have a look at the Cheap Energy Club on here and see what you could be paying... If you were not in a district heating scheme.

BobbyBanana123

Thanks for your replies. Yes, looking into it, it would appear that the standing charge at 50p/day is around 3X the going rate and the price per kw is also around 3X. You're right, the boiler is maintained by L&Q, so there is that factor to consider.
Still feels like I'm being ripped off.
What can I do? Write to my MP otherwise very little it seems.

Smodlet

BobbyBanana123 wrote: »

Thanks for your replies. Yes, looking into it, it would appear that the standing charge at 50p/day is around 3X the going rate and the price per kw is also around 3X. You're right, the boiler is maintained by L&Q, so there is that factor to consider.
Still feels like I'm being ripped off.
What can I do? Write to my MP otherwise very little it seems.

Why on earth would your MP be interested? You signed a contract; if you did not read it/ensure you understood it fully before doing so, that is your problem. As for what you can do, I addressed this in my previous post.

System

Parliament is already aware:

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2017-09-05/8815/

http://heattrust.org/index.php/the-scheme