Energy Charges: Despite price caps, flat residents are facing a significant rise | Energy Charges

HHundreds of thousands of people living in apartments are facing an increase in “totally affordable” energy prices because the supply of communal heating systems is not protected by the government. Price limit..

Households using traditional heating systems are said to be able to increase their gas and electricity bills by more than 50% if the cap is raised on April 1, but 17,000 blocks in the UK. People who bought or rented apartments that depended on apartments in one are facing a four-fold increase in heating and hot water systems as suppliers pass on without restraining significant wholesale price increases.

It is estimated that up to 500,000 people live in developments where at least part of the heating and hot water is provided by a centralized system and is usually managed by a company that manages real estate.

All of these development apartments are supplied by a single energy supplier, which is classified as a commercial transaction rather than a domestic supply, so residents do not have an invoice protected by Ofgem’s price cap. Hmm.

Some of the affected people are well-known residents Chips in New Islington The region of Manchester where some of the energy prices have tripled after the collapse of the building’s energy supplier in November.

People living in a nine-story building can control the amount of heating and energy used in an individual apartment, but not who powers it and what fees it applies. All of their hot water is centrally supplied by the green boiler.

Some of the energy bills for Chipsville residents in New Islington, Manchester have tripled. Photo: Christopher Tomond

One resident said he shed tears and found his neighbor after a huge invoice was sent on December 21st.

In some cases, you may be billed more than tripled based on usage rather than quotation. One of the owners of the two-bedroom flat saw has increased its bill from £ 80 in November to £ 260 in December. In addition to the increase in electricity prices, the unit price of gas has tripled, so some people have received even higher charges.

“Our energy costs have tripled overnight,” says Magdalena, a scholar living in Brock.

“A former bankrupt gas supplier, Ofgem has appointed a new supplier. The building I live in has a heating system, so we (residents) can change suppliers. can not.

“Many people in a building with a mix of owners, rents and tenants can’t afford this sudden and significant cost increase. It’s so bad that some have started looking for another accommodation, Some people simply don’t use heating.

“People say that paying thousands of pounds for heating is not an option and you have to move out. This is all done by the management company and the residents seem to have no power to stop it. And even say … I feel it’s incredibly unfair, “she says.

Switch2 Energy, a billing service provider for the Chips scheme, and Pozitive Energy, a new energy supplier for buildings, said the increase experienced by residents reflects rising wholesale prices due to the failure of previous suppliers. I am.

Chris Wright *, who lives in the Deptford Landing Complex in southeast London, also has a communal hot water system, and contacting Guardian Money will increase hot water charges by about 464% for him and other large premises residents. ..

“For some families in the block who use more hot water than we do, this will be a big financial blow. We have caps on invoices for everyone else. Why isn’t a flat resident like that? ”He asks.

Lisa Gregory, who runs Ginger Energy, a consultancy based in Birmingham, a leading company in the field, says this “really scary” situation is a fraud with serious consequences for affected people.

“Many people have a hard time paying for new costs, and it’s very likely that they’ll be in debt afterwards,” she says. “We have to tell the residents of some blocks to pay four times the energy of the previous unit fee. Regular home consumers are protected by price caps for at least a period of time, but these Block consumers are completely exposed to market changes. “

She states that the classification dates back to a 2012 decision made by industry regulator Ofgem, ahead of current turbulent market conditions and price caps.

“We’re looking for a complete overhaul of price limits. Residents aren’t included. It doesn’t work for suppliers. The system is completely broken,” she says.

In late December, the government announced that Ofgem wanted to take over as a regulator of the thermal network. However, due to the need for law, it seems that it will take months, if not years, to take effect. In the meantime, people living in unregulated homes may face years of higher invoices than if their building had a traditional heating system.

This week, the boss of British Gas’s parent company warned about the issue of high energy prices. May remain for another 2 years..

An instant hot water faucet with steam water flowing into the kitchen sink.
Residents of the Deptford Landing Complex in southeast London are said to be about to raise their hot water charges by 464%. Photo: Jim Holden / Alamy

Steven Knight, director of Heat Trust, a national consumer protection scheme for thermal networks, says the law to protect consumers who rely on co-heating schemes has been postponed for a long time.

“We welcome the government’s commitment to regulate thermal networks and the news that Ofgem has new authority to oversee this sector. The lack of regulation leaves more and more consumers unprotected. As the country’s reliance on the thermal network grows, so does its performance and service standards scrutiny. To avoid further delays, we have the government legislate in a May Queen’s speech. You have to commit, “he says.

Ofgem promised to take over the regulation of the thermal network, but said the timing was out of control.

Mark Thomas, CEO of Community Energy Partners, which provides energy to Deptford Landings, states that suppliers have no option to pass on rising wholesale costs.

“I ask governments and regulators to help level out costs to their customers, either through company loans or by removing green tax or VAT from invoices. This is all welcome. “He says.

“We fully understand that this is a worrying time for Chips residents,” Switch 2 said in a statement. “The new tariffs reflect the market rises we have experienced over the last 12 months, and wholesale gas prices have quintupled since January 2021.”

RMG, the management agent for Chipsville, told Manchester Evening News that it was “not involved in the procurement or placement of utility contracts.”

Pozitive Energy said it had a lot of sympathy for the residents, but said that the inheritance of the contract forced them to buy gas to supply the building at the current market price.

Thermal networks are considered by the Minister as a proven and cost-effective method Provides reliable low carbon heat At a fair price to consumers. The UK government says it provides about 2% of the UK’s heat demand, but is working towards growth in the heat network sector, which could meet about one-fifth by 2050.

* Not his real name

Energy Charges: Despite price caps, flat residents are facing a significant rise | Energy Charges

Source link Energy Charges: Despite price caps, flat residents are facing a significant rise | Energy Charges

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