The government is being urged to take action to help thousands of people who are stuck with high energy bills because their heat is supplied through communal heating systems.
It is estimated that around 480,000 UK households, many in apartment blocks and social housing, are affected.
They are not covered by the energy price cap because their heat is charged at commercial rates and they cannot switch suppliers. The government’s Energy Bill Discount Scheme, which has offered some protection, comes to an end on March 31.
Now bosses of a company which specialises in billing and metering for communal energy schemes have thrown down the gauntlet to the government and are calling for them to be given parity with those covered by the price cap.
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.
“A two-bed flat on a communal energy scheme would use 6,700kwh of heat a year and would cost around £2,400 per annum to heat without EBDS help, compared to a standard flat heated with a gas boiler of around £1,000 a year (with the price cap).
“We are particularly concerned about ensuring that these individuals, including many in social housing and vulnerable residence, continue to receive equitable treatment under any future discount or relief measures.
“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.
“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.”
