Retrospective changing of tariff on Heat Network


We are leaseholders and our energy is provided by a Heat Network by With Energy, who are part of Pinnacle Power. Our apartments are managed by the management agent Rendall and Rittner. Myself and approximately 600 other leaseholders received the following in a communication from With Energy on 28th April 2023:
To me this seems blatantly illegal. I don't see how they can retrospectively alter tariffs, after energy has been used and after bills have been paid.
HISTORIC TARIFF DEFICITUnfortunately, it has been identified by your Management Company that the current tariff has been insufficient to cover the gas charges incurred. This will mean that each property will receive an additional charge to their account.These charges have been calculated based on the consumption used within your individual property, therefore everyone’s charge will be different depending on your personal use. You will see this charge appear on your bill received at the start of June 2023.
As we are providing 30 days notice of the next tariff it is likely that we will need to communicate an additional charge later in the year to cover the period January – May 2023 once all data is available.
On contacting With Energy they told me our management agent Rendall and Rittner are responsible for the communication, that they are 'just a billing agent' and they follow Rendall and Rittner's direction. They have said that our management company is the heat supplier.
Rendall and Rittner have similarly been reluctant to take responsibility.
I have submitted formal complaints to both companies and am gradually escalating through the complaints process. Bills have not yet been issued but neither company has backed down and both says the charges will soon be issued. I recently received the following from Rendall and Rittner in response to a formal complaint (which notably no longer uses the term 'Historical Tariff Deficit'):
"In relation to your point regarding the tariff review, unfortunately we will have to collect the additional funds for this, and the bills received have been based on actual consumption, therefore this is not something we can query with the supplier.
Whilst we completely understand the frustration around this, we need to receive sufficient funds to settle the gas bills, but unfortunately due to the current market, this has caused many developments to have under collected.
To confirm your amount that will be requested for the under collection will be in the region of £437. We appreciate that as a country we are facing an energy crisis and for those individuals who are struggling, we can set up a 6-month payment plan in order to clear this back dated debt. If this is something you would like to be put in place, please do let us know."
It has also become apparent that our site is not registered by the Heat Trust so they are unable to assist.
Other than refusing to pay bills if/when they are issued - which could have an impact on credit ratings - is anyone able to offer advice on what steps should be taken in this situation?
Comments
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Which law do you think they have broken, as you say it is "blatantly illegal"?
You'll have to look at what your supply contract said. Heat network, so not particularly regulated, it all depends on your contract terms.
What steps to take? Read the T&Cs.1 -
What's the point in having a tariff at all if they can alter it after the fact? I paid for metered energy on a tariff that had been published at the time. I think that would be fall pretty squarely under the Consumer Rights Act.0
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Also, they may not be regulated but they do fall under the The Heat Network (Metering and Billing) Regulations 2014:Schedule 2:
3. Where billing information is not issued by the heat supplier at least quarterly in accordance with paragraph (2), billing information must be issued by the heat supplier at least twice a year and with every bill issued.
4. Billing information means the following information—
(a)current energy prices charged to the final customer by the heat supplier;
(b)information about the final customer's energy consumption from the heat supplier;
Bills are therefore based on prices that were charged at the time.
Part 3 of these regulations states that it is an offence not to comply with regulations on billing:
Offences
11.—(1) It is an offence for any heat supplier to fail to comply with—
...
(f)regulation 9 (billing).0 -
I have pointed all of this out to them but they continue to insist the charges must be paid.0
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As I said, it depends on the contract.
Modifying a tariff during its life or having a tariff that includes provision for recoup of unexpected additional cost are both possible and certainly not illegal if that's what the T&Cs allow.
Until we know what the T&Cs say, we can't really help. The CRA isn't a catch-all for "things that I didn't realise I'd agreed to" - which we haven't yet ruled out.
edit: they complied with that bit of the regulations that you quote. The told you what you were paying at the time, and they told you how many units you had used. Didn't they?0 -
That doesn't say anything about forbidding retrospective price adjustment.0
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cbmatheson said:What's the point in having a tariff at all if they can alter it after the fact? I paid for metered energy on a tariff that had been published at the time. I think that would be fall pretty squarely under the Consumer Rights Act.It seems like you don't want help, you just want to have a good rant.There's a separate board for that:N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Shell (now TT) BB / Lebara mobi. Ripple Kirk Hill member.
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 33MWh generated, long-term average 2.6 Os.Not exactly back from my break, but dipping in and out of the forum.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!1 -
So to be clear, you think this is reasonable/legal and I should pay?0
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I have a document from With Energy which says:"- Unit Charge: With Energy will purchase the gas required for the heat system and sell heat to the residents at a Heat Unit Rate based upon our initial gas purchase price and expected system efficiency. The tariff will be reviewed in April of each year and adjusted according to changes in the cost of gas and the actual efficiency of the system, with With Energy accepting the risk of variability of gas price and efficiency between re- views."0
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So to be clear, as I have said three times and will repeat three times, read the T&Cs.
Read the T&Cs.
Read the T&Cs.
When you know what the T&Cs say, you will know whether what they did complied with the rules of the tariff that you signed up for or whether it did not.
If it complied, you have no case. If it did not comply, you do.
It's not about your guess at what you think the T&Cs might or might not have said, or what you think was nice, or fair, or anything else. It's entirely about what is written.
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