Heat Network 650% increase and applied retrospectively?!

rileyev

Had a letter at the weekend telling us the price we pay for heat (hot water and heating) was going up 650%... I was expecting some sort of increase, but this is just crazy! To top it all off they have said the new tariffs will be applied from 4th March, in a letter dated 22 April, surely that cannot be allowed, we'd have drastically changed our usage if we knew the price was going to change like this. It feels like we're being scammed by them applying it to energy we've already used at a price a lot lower! What can I even do about this? It's a heat network run by the management company for leaseholders, so no price cap or regulators to complain to and they aren't part of the heat trust.

Gerry1

At those prices you'd be better off using an immersion heater and electric convectors, even if you can't cancel the heat network standing and admin charges.

However, that may change in October when Ofgem's new price cap will apply.

GingerTim

That's pretty outrageous - at my place with a heat network we currently have a standing charge of £1.20 on gas but a unit charge of 9p. Glad it's so well insulated that the heating rarely goes on!

stewie_griffin

According to that the new tariff expired on 31/03/2022?? 

rileyev

stewie_griffin said:

According to that the new tariff expired on 31/03/2022?? 

Good spot! but i think it might be a typo. Another letter we have had from them in the same envelope says until 31st march 2023, but it does also have a different unit rate of 34.99p/kWh ??

rileyev

Gerry1 said:

At those prices you'd be better off using an immersion heater and electric convectors, even if you can't cancel the heat network standing and admin charges.

However, that may change in October when Ofgem's new price cap will apply.

Sadly, I'm renting so have no powers to change any of that

QrizB

How much heat do you use from the network?

If you get through 1000kWh in a winter month, that's going to be costing almost £370/month.

rileyev said:

Gerry1 said:

At those prices you'd be better off using an immersion heater and electric convectors, even if you can't cancel the heat network standing and admin charges.

However, that may change in October when Ofgem's new price cap will apply.

Sadly, I'm renting so have no powers to change any of that

Yes you do, an electric convector heater is £25 from Argos. Providing 1000kWh with that will be £290 or so, a saving of £80 vs. your heat network.

Alternatively, do you have any option to move somewhere less extortionate?

pochase

rileyev said:

stewie_griffin said:

According to that the new tariff expired on 31/03/2022?? 

Good spot! but i think it might be a typo. Another letter we have had from them in the same envelope says until 31st march 2023, but it does also have a different unit rate of 34.99p/kWh ??

34.99p plus 5% VAT makes it 36.74, so that is the net rate.

pjread

Looking at that, I'm guessing those are the incurred gas costs for a communal heating system & later it then says your portion is £XXX per month/year?  i.e. grabbing an electric heater won't help you(!)

Mstty

Is there no protection for people on a communal heating system. I guess the people running it are buying commercially and have to split all costs equally and.not make a profit?

Gerry1

Mstty said:

I guess the people running it are buying commercially and have to split all costs equally and.not make a profit?

It's likely that individuals usage has to be metered, so if the OP turns the heating off then there should be no kWh charges.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/941673/heat-networks-guidance-on-metering-and-billing-regulations-2014.pdf

See Regulation 4.