Heat Network 650% increase and applied retrospectively?!

pjread

That's the crux I think - if it's metered there's at least an option to partially avoid, but if it's truly communal (and it may include pro-rata share of heading shared spaces potentially, or indeed be unmetered and e.g. financed via service charge) that might not be so simple. 

12.15 of that doc states "From 1 September 2022, final customer meters will be mandatory in almost all
newly constructed buildings with communal heating" - so whilst I'd cross my fingers as the OP that I had one, it doesn't seem a legal requirement yet (and even then, only for new buildings)

Given the network's run by the building management company on behalf of the leaseholders & seems to be just trying to recover costs, I wonder if the other residents (some of whom likely are the leaseholders) are as worried as you...?

MarmotV

I am buying a flat with a communal heating and hot water system. There is a daily 50p standing charge and 8p unit charge. There is also the yearly cost of £600 for communal boiler servicing/maintenance and an extra £600 for water pump maintenance.

My brother lives in a conversion flat with an individual boiler. He spends £90 per year servicing their boiler and 30p standing charge with 7p unit charge. He spent £2k to have it installed. (In other words, with the money I spend on maintenance, he could buy a new boiler every 2 years). He also lives in a much nicer part of town.

It's extraordinary that communal boilers are more expensive than individual ones. Someone told me that the housing association keeps the boiler on during the year allowing any heat to pass through the vents. Right now people in the flats are leaving their windows open all day and night because it gets so hot.

QrizB

MarmotV said:

I am buying a flat with a communal heating and hot water system. There is a daily 50p standing charge and 8p unit charge. There is also the yearly cost of £600 for communal boiler servicing/maintenance and an extra £600 for water pump maintenance.

In that situation, I wouldn't be buying the flat unless it's £1200/yr cheaper than an equivalent flat without the district heating system.

Astria

I have a friend who lives in a rented flat, none of the flat have thermostats but they do have vents which can open/close/half close/etc plus electric "supplementary" heating. Has to pay a standing charge for gas even though there's no gas to the property, plus an administration charge and a "fixed" quarterly charge (which changes each quarter). I'm sure the corridors are heated as well as they never seem cold even when it's -5c outside. I'm a bit puzzled as to why they don't roll the standing charge and admin charges into the quarterly charge considering you can't actually use any gas! (then again, maybe some of the flats can...)

Ultrasonic

MarmotV said:

I am buying a flat with a communal heating and hot water system. There is a daily 50p standing charge and 8p unit charge. There is also the yearly cost of £600 for communal boiler servicing/maintenance and an extra £600 for water pump maintenance.

My brother lives in a conversion flat with an individual boiler. He spends £90 per year servicing their boiler and 30p standing charge with 7p unit charge. He spent £2k to have it installed. (In other words, with the money I spend on maintenance, he could buy a new boiler every 2 years). He also lives in a much nicer part of town.

It's extraordinary that communal boilers are more expensive than individual ones. Someone told me that the housing association keeps the boiler on during the year allowing any heat to pass through the vents. Right now people in the flats are leaving their windows open all day and night because it gets so hot.

That would massively put me off buying the flat. Are there any long term guarantees re. future costs or can they just do what they choose?

Edit: note it will make the flat harder to sell.

MarmotV

Ultrasonic said:

MarmotV said:

I am buying a flat with a communal heating and hot water system. There is a daily 50p standing charge and 8p unit charge. There is also the yearly cost of £600 for communal boiler servicing/maintenance and an extra £600 for water pump maintenance.

My brother lives in a conversion flat with an individual boiler. He spends £90 per year servicing their boiler and 30p standing charge with 7p unit charge. He spent £2k to have it installed. (In other words, with the money I spend on maintenance, he could buy a new boiler every 2 years). He also lives in a much nicer part of town.

It's extraordinary that communal boilers are more expensive than individual ones. Someone told me that the housing association keeps the boiler on during the year allowing any heat to pass through the vents. Right now people in the flats are leaving their windows open all day and night because it gets so hot.

That would massively put me off buying the flat. Are there any long term guarantees re. future costs or can they just do what they choose?

Edit: note it will make the flat harder to sell.

Re the standing charge, they follow the RPI.

Re the servicing/maintenance costs, these will vary. Yet, the £600 per year in boiler servicing has been consistent over the years - which seems well above average. I know that they do not charge these sums from tenants (many of whom are social housing tenants), so it all comes from the freeholder/housing association and leaseholders.

stewie_griffin

I've asked a friend who lives down London way and he has communal heating with E.ON and he now pays a standing charge of £1.11 a day and the price per kWh is 9.31p. There's no other maintenance costs to pay.

[Deleted User]

If the District Heating Scheme is registered with Heat Networks, complaints can now be escalated to EOS for arbitration. That said, my recent experience of EOS suggests that its ‘investigations’ will not necessarily lead to the correct evidence-based Decision. In other words, before escalating a complaint to EOS it is wise to factor in the possibility that the complaint will be rejected.