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New build, expensive energy tariff, can't switch provider

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  • snowqueen555
    snowqueen555 Posts: 1,562 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 27 November 2022 at 6:15PM
    Just wondered how you're getting on, OP? How have you found your district heating?

    There will have been a mention of the heating and hot water supply arrangement in the reservation form you signed. This is mandatory so you will find it as one of the TERMS OF SALE. You will have signed this when you paid your initial £500 or whatever reservation fee many months before the solicitor sent the agreement.

    Mine was in there and I then looked around to find out more about this type of heating, and found very little info on it.
    Here is my anecdote if it helps:

    It has only been a week for me but so far this district heating scheme seems to be okay, which I too was very skeptical of.

    In theory it is a great idea IMO; I love the 'green' potential, possible benefits to the environment and the lack of maintenance of a boiler/gas supply, but the lack of any regulation of the suppliers whatsoever and the monopoly to which you are subject once you complete made it very unappealing. But when you think about it, it has to work that way by design.

    I hope an independent regulator is appointed though, not just one where the directors of all the district heating supplier sit on (there is currently something similar for district heating suppliers but it isn't a regulator, sort of like a "charter" with voluntary membership). The scheme works well in mainland Europe and has done for years, but as a relatively new player, the UK is likely to get it very wrong a few times at least before getting it right, so consumers must be protected from limitless costs.

    I have only been in the flat 1 week as I mentioned but it is so well insulated as a new build and so warm, I have not turned heating on once despite several freezing nights. Constantly at between 21-26 (!!) degrees, depending on the sunshine, as it is like a greenhouse. So my usage has been solely hot water and in 1 week I have spent £3.40 (1 person living alone).

    Including my standing charge of around £18.60 per month standing charge (which covers "admin charge for running and maintaining the system -- suspiciously high IMO, breakdown needed!) and probably less than £15 usage, to make £33.60. This is less than my gas bill at previous flat which had GCH; I turned on heaters 3 times per day and was still cold some times - also doesn't include maintenance of the boiler etc.

    But if I turned on the heating (I HIGHLY doubt I ever will) this would definitely be high IMO.

    All in all, I think my bills will be comparable or cheaper with this district heating scheme, but I am actually just worried about how unbearably hot it might get in summer. We shall see!

    ,


    How is this going now?

    I'm purchasing but it is £1.05 a day standing charge and 20p kph for hot water 😫
  • sammyjammy
    sammyjammy Posts: 7,974 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Thread is two years old and OP only posted a total of ten times so I don't think they will be back to comment.
    "You've been reading SOS when it's just your clock reading 5:05 "
  • Thread is two years old and OP only posted a total of ten times so I don't think they will be back to comment.
    To be fair I quoted the poster who was last active yesterday, not the OP.
  • ariarnia
    ariarnia Posts: 4,225 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Thread is two years old and OP only posted a total of ten times so I don't think they will be back to comment.
    To be fair I quoted the poster who was last active yesterday, not the OP.
    @snowqueen555 if you want to attract there attention then its best to @ them 

    @annetheman you there? :)
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  • annetheman
    annetheman Posts: 1,042 Forumite
    Ninth Anniversary 500 Posts Photogenic Name Dropper
    ariarnia said:
    Thread is two years old and OP only posted a total of ten times so I don't think they will be back to comment.
    To be fair I quoted the poster who was last active yesterday, not the OP.
    @snowqueen555 if you want to attract there attention then its best to @ them 

    @annetheman you there? :)
    Thanks!

    Just wondered how you're getting on, OP? How have you found your district heating?

    There will have been a mention of the heating and hot water supply arrangement in the reservation form you signed. This is mandatory so you will find it as one of the TERMS OF SALE. You will have signed this when you paid your initial £500 or whatever reservation fee many months before the solicitor sent the agreement.

    Mine was in there and I then looked around to find out more about this type of heating, and found very little info on it.
    Here is my anecdote if it helps:

    It has only been a week for me but so far this district heating scheme seems to be okay, which I too was very skeptical of.

    In theory it is a great idea IMO; I love the 'green' potential, possible benefits to the environment and the lack of maintenance of a boiler/gas supply, but the lack of any regulation of the suppliers whatsoever and the monopoly to which you are subject once you complete made it very unappealing. But when you think about it, it has to work that way by design.

    I hope an independent regulator is appointed though, not just one where the directors of all the district heating supplier sit on (there is currently something similar for district heating suppliers but it isn't a regulator, sort of like a "charter" with voluntary membership). The scheme works well in mainland Europe and has done for years, but as a relatively new player, the UK is likely to get it very wrong a few times at least before getting it right, so consumers must be protected from limitless costs.

    I have only been in the flat 1 week as I mentioned but it is so well insulated as a new build and so warm, I have not turned heating on once despite several freezing nights. Constantly at between 21-26 (!!) degrees, depending on the sunshine, as it is like a greenhouse. So my usage has been solely hot water and in 1 week I have spent £3.40 (1 person living alone).

    Including my standing charge of around £18.60 per month standing charge (which covers "admin charge for running and maintaining the system -- suspiciously high IMO, breakdown needed!) and probably less than £15 usage, to make £33.60. This is less than my gas bill at previous flat which had GCH; I turned on heaters 3 times per day and was still cold some times - also doesn't include maintenance of the boiler etc.

    But if I turned on the heating (I HIGHLY doubt I ever will) this would definitely be high IMO.

    All in all, I think my bills will be comparable or cheaper with this district heating scheme, but I am actually just worried about how unbearably hot it might get in summer. We shall see!

    ,


    How is this going now?

    I'm purchasing but it is £1.95 a day standing charge and 20p kph for hot water 😫
    It's going okay - I have asked in August 2022 about any planned increases, was advised there are none planned (reason I asked was the impending doom with average rates increasing at the time to a projected £6k).

    Because the 000,000s of heat district customers are basically sub-customers on a network which is on business rates, there are no caps (like the 'energy cap') to protect from increases and no specific help for us at all; no plans to address this anytime soon, either. Rishi Sunak said it in some committee.

    I have seen bills increase by 1000+% so my only assumption is that something in my network's specific heat network contract is protecting us, otherwise the supplier would absolutely be passing the cost down to us - govt business support has only just been introduced.

    I note the 1000+% bill increases also had the audacity to backdate increased costs to the customer. No regulator - they can do what they like. Essentially - we're increasing your bill by 1000+%. This is because everything is more expensive for us. We have also been paying higher costs since March this year, so we've added £££UNLIMITED to your bill to cover this as well. Please pay by end of month - cheers.

    I'm thinking of starting a campaign about this. 

    TL;DR: bills are okay - cheaper than if I had gas and was subject to recent increases; unregulated sector so expect without action to pressure govt into regulating the sector, exploitation will soon be rife.
    Current debt-free wannabe stats:
    Credit cards: £9,705.31 | Loans: £4,419.39 | Student Loan (Plan 1): £11,301.00 | Total: £25,425.70
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  • @annetheman

    If you don't mind me asking, what is your current tariff?

    I'm sorta worried because I'd be living in my own so can't share the costs with anyone.
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    There is no tariff for district heating schemes. The price will be whatever the management co. or freeholder has negotiated with the supplier, and it's entirely unregulated.
    No free lunch, and no free laptop ;)
  • macman said:
    There is no tariff for district heating schemes. The price will be whatever the management co. or freeholder has negotiated with the supplier, and it's entirely unregulated.

    A tariff by definition can mean a set charge for a good or service. I know the prices can change, but at any one time they will have a tariff.
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