Urgent warning for half a million households facing shock energy bill rise despite price falls – are you affected?

HUNDREDS of thousands of households excluded from the energy price cap face a huge jump in bills.

Many homes in communal heat networks are on a low income.

Yet, they are being stung with a devastating rise in the cost of powering their property, just as bills for everyone else are starting to come down.

This is because buildings with heat networks usually buy up energy far in advance.

Therefore, the price rises that impacted most homes last winter are now being felt by these billpayers.

Some homes have seen gas bills double, MP Apsana Begum told The Guardian.  

And one resident in Lambeth, London told the paper their bill has shot up by 350% working out at an extra £76 a week.

And the increase comes just as £400 of government support with energy bills has come to an end.  

It’s estimated 480,000 homes are impacted, and many residents in council-owned tower blocks.

The government’s energy price guarantee caps bills at £2,500 a year – but it does not apply to homes on heating networks.

It is a Government discount to ensure families did not have to pay too much for their energy.

The scheme will become redundant in July when Ofgem’s energy price energy price cap will come into force keeping bills at a lower £2,074.

Communal bills are divided among residents usually based on how many hot water taps and radiators there are in each property.

The method fails to take into account how many people live in the home or how much energy the home uses.

Even if someone uses no energy at all they still have to pay the same as everyone else in the network.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “While energy bills for everyone remain high for the months ahead, those on heat networks are being cruelly disadvantaged as their suppliers bought their energy during the highest peaks of the gas and electricity prices. 

“Many people on these networks are among the most vulnerable and should have greater protection from the worst of the energy crisis, not least because they do not have the ability to switch to another supplier. 

“They are yet more victims of Britain’s broken energy system, which is in desperate need of reform.”

Suppliers can apply for government help to give customers but it’s not always clear how much of this support is passed on.

A government spokesperson said:  “While we cannot comment on individual cases, we know it has been a difficult time for families, which is why the government covered around half of the typical household’s energy bill this winter.  

“Heat network customers receive support through our Energy Bills Discount Scheme.

“Heat suppliers – such as housing associations – must apply for this support and the law requires them to pass on savings to residents in a just and reasonable way.  

“The support will be backdated to cover all energy usage between 1 April 2023 – 31 March 2024 and will ensure that customers on heat networks do not face disproportionately higher bills when compared to customers in equivalent households who are supported by the Energy Price Guarantee.”  

Help with bills for communal heating homes

Sadly, cutting back your energy use won’t impact costs for people in a communal heating network because the bill is divided by all the homes regardless of usage.

However, if they are concerned their supplier has not passed on government support, they can complain.

Under the upcoming Energy Bill, Ofgem is the heat networks regulator and will have powers to investigate and intervene on networks where prices for consumers appear to be unfair.

One source of help for households could be the Household Support Fund.

This is a pot of money available to vulnerable households in England.

The cash is paid out through local councils which set the criteria for accessing the support.

It means whether you qualify and the level of cash you can get varies depending on where you live.

For example, residents in Warrington eligible will receive a minimum of £190 over the year thanks to the payments.

In North Yorkshire, thousands of locals received electronic supermarket vouchers worth up to £325.

Buckinghamshire Council has also extended support after receiving £4.8million for April 1, 2023 to March 31, 2024.

And residents in North Norfolk District Council are also set to get a fourth round of the HSF from April 1, 2023, to March 31, 2024.

Usually, homes will need to be in receipt of certain benefits to access the scheme.

But check with your local council to find out the exact criteria.