Heat Network customers seeing 400%+ increases in uncapped market - no help, no guidance

annetheman

The below article outlines the problem perfectly:

https://www.theguardian.com/money/2022/jan/15/energy-bills-flat-dwellers-face-massive-rise-despite-price-cap

If you are in a heat network, you are absolutely effed, as your heating and hot water costs are totally uncapped and unregulated. 

I have yet to see any guidance, advice or information from MSE on this - are we the flat-dwellers forgotten and consigned to our fate?

[Deleted User]

What guidance or advice would you like?

You said it perfectly, these systems are uncapped and unregulated by OFGEM, and you don't get a choice of supplier.

GingerTim

Fully expecting a unit rate of c. 18/19p for heating and hot water on our place. Good job the insulation is that good that the heating is rarely needed!

Aylesbury_Duck

Have people on those deals generally benefitted from lower than typical domestic tariffs until price caps came in, as a consequence of collective purchasing power?  Presumably they're not paying a standing charge?

An entirely genuine question, I don't know how those schemes work.  If tenants have previously benefitted, isn't this the other side of that coin?

GingerTim

Unfortunately district heating schemes aren't governed by the price cap as they are classed as commercial tariffs. I think there was some talk of legislating for them to be classed as residential, but nothing thus far.

On the flipside, new builds like mine in theory should be very well insulated, reducing the need for heating.

annetheman

[Deleted User] said:

What guidance or advice would you like?

You said it perfectly, these systems are uncapped and unregulated by OFGEM, and you don't get a choice of supplier.

Any would be great, of any kind. The linked article, for example, states where things were from a regulatory and legislative standpoint at the time of writing (Jan 2022). Any info from MSE on any aspect of this in any way would be welcome and great, even if it is "you're all screwed!".

annetheman

Aylesbury_Duck said:

Have people on those deals generally benefitted from lower than typical domestic tariffs until price caps came in, as a consequence of collective purchasing power?  Presumably they're not paying a standing charge?

An entirely genuine question, I don't know how those schemes work.  If tenants have previously benefitted, isn't this the other side of that coin?

I confess I don't know as I only joined one in Feb 2021 and didn't even know they existed beforehand.

As @GingerTim mentioned, most of the places in these networks are new builds so very well insulated - I think I turned my heating on about 5 times last winter.

Hot water use compared to a house with a boiler would probably be the same, but I'm not sure about comparative costs.

If they were of better value historically, that is absolutely not the case any more - how bad it will be is an unknown because the costs are totally uncapped and the market is entirely unregulated.

I could be sitting on a 800% increase and not know it until I get the letter.

Edit to add: Gov source of 700%+ increases for heat network customers already in April 2022, 800% now is me being conservative.

pochase

What are you currently paying per KWh?

GingerTim

9p/kwh at my place, up from 3p the year before. Soon find out what's coming...

annetheman

pochase said:

What are you currently paying per KWh?

As of 9th August:

£0.04 per kWh
Standing charge: £0.36 per day

Comparatively okay - for now.

I asked my billing company if there are any planned increases, and they responded no - I do not believe that at all:



Who do we go to if we are not notified of any increase beforehand? Who do we complain to if our unregulated monopoly supplier misleads us?