A Salford company is urging the government to help those who may be facing higher energy bills because their heat is supplied through communal heating systems.
Residents whose heat is supplied through communal systems are not covered by the energy price cap. This is because their heat is charged at commercial rates and they cannot switch suppliers. The government’s Energy Bill Discount Scheme has so far offered some protection from this, however this comes to an end on March 31.
Joel Debson, a director of Clever Energy Billing, which is based in Salford and operates nationwide, has written to Michael Gove and other ministers to highlight the plight of people whose heat is supplied by communal heating systems.
In the letter he says: “As a billing partner in the communal energy sector, we take care of over 10,000 homes. We are keenly aware of how the cost of heating their home has put many into fuel poverty.
“The costs which the tenants will be facing after EBDS finishes would mean they are paying 200-300 per cent more than the price cap equivalent due to contracts procured during the energy crises resulting from the invasion of Ukraine.
“Thus, we seek assurance that the government’s energy price cap and related discount schemes will offer comprehensive protection to all domestic consumers, including those reliant on communal and district energy systems, post-April 1 2024.”
Joel said such protection was vital in the interests of fairness and equality in domestic energy policy.
He added that he and his fellow directors are willing to collaborate with the government to help it navigate the challenges and facilitate effective action to ease the plight of those in communal or district heating systems.
“We see how much tenants, leaseholders and building owners are struggling to pay their bills. They feel helpless and are unable to understand why they don’t benefit from the price cap,” he said.
It is estimated that around 480,000 UK households, many in apartment blocks and social housing, are affected by the higher energy bills.
Joel added: “The huge rates which many are locked into will not be ending on April 1, but will continue until the end of 2024.
“To make matters worse, EBDS payments only started coming in around December 2023 due to a backlog.
“Tenants have been falling into arrears, and landlords have been paying bills since April 2023 with no discount. Many have been struggling to do so.
“Furthermore, people are also concerned about the impact on the value of their properties, because having a communal energy scheme is perceived as off-putting to some potential buyers.
“We want parity with residents who benefit from the price cap. The government wants to see more people on communal heating schemes, but is not doing enough to make them attractive to end users and developers. Urgent action is needed to rectify the situation.”
Recent Comments