L&Q/ SSE Complaint-now paying almost 10 x the heating costs in standing charges

HerbertSherbert

I'm a share ownership owner/renter who signed a heat supply agreement when I moved in. 

As well as the standing and capital replacement fund charges being much higher than what we signed (an apparent 'mistake' by L&Q, who refuse to honour that agreement) they are now extortionately high. For example, on our last bill the heat consumption cost was £18.01 but the combined standing charge and capital replacement fund for the same period was £158.15!

This feels borderline criminal, but we've been told that we're 'locked in' and can't shop around for a better deal. The heating ombudsman don't deal with billing issues so we're not sure what to do. 
Any advice would be hugely appreciated! 

BarelySentientAI

Heat supply installations are expensive.  If there's a capital replacement fund for it, then it's no surprise that it costs a lot.

They are correct that you can't "shop around", it's not the public supply system.

It's not criminal.

Some regulation might come (slowly, as it's only just been placed under OFGEM), but it is unlikely to solve your issue.

Ectophile

If they are trying to charge you more than was in the contract, then you need to get legal on them.  Even if it was a genuine mistake, they can't simply impose whatever charge they like on you.

MattMattMattUK

HerbertSherbert said:

I'm a share ownership owner/renter who signed a heat supply agreement when I moved in. 

As well as the standing and capital replacement fund charges being much higher than what we signed (an apparent 'mistake' by L&Q, who refuse to honour that agreement) they are now extortionately high. For example, on our last bill the heat consumption cost was £18.01 but the combined standing charge and capital replacement fund for the same period was £158.15!

This feels borderline criminal, but we've been told that we're 'locked in' and can't shop around for a better deal. The heating ombudsman don't deal with billing issues so we're not sure what to do. 
Any advice would be hugely appreciated! 

Without any time period to measure against it is hard to tell if those costs appear reasonable or not, if they were per day then not, if they were per year then they are very cheap. 

If one factors in the costs of buying, installing and maintaining a boiler then they costs are usually not that out of proportion as they can initially seem when people only focus on the unit rate and ignore all the other costs. 

It is not criminal. 

Scot_39

Have you taken legal advice on the changes since you signed.

Or reviewed the small print. As you will probably find the contract allows them to be reviewed by supplier anyway, or as past posts here sold onto another etc etc.

And until something concrete comes out of Ofgems review of heat networks - (havent seen it reflected in posts here if has) they are currently more akin to free market commercial terms vs normal domestic contracts and it's inherent consumer protections.

And as above its easy to forget that as an owner with own internal heating system - you would be responsible for replacing say your own boiler periodically  - a few £1000 every say 10-15 years as a general guide.

And for a green option like an ASHP without the grant likely far more.  And they too probably wont have option of staying gas or any other fossil fuel for much longer either.