Residents relying on council-run heat networks are reportedly facing heating costs nearly 30% higher than the Ofgem price cap since 2023-24. The government's proposal to have Ofgem regulate heat networks by 2026 aims to deliver fairer pricing and maintenance standards. For instance, Dolly Thomas from North Peckham reports significant increases in service charges, which have tripled since her arrival in 2011, causing financial strain on her family. The commercial nature of gas purchases by councils leads to no upper limit on charges for residents sharing the heating supply.
Residents connected to council-run heat networks are facing significant cost increases, with heating expenses rising nearly 30% above the Ofgem price cap since 2023-24.
The service charge for heat network users, such as Dolly Thomas, can exceed £6,600 annually, with over half of that amount attributed to heating and hot water costs.
Gas for heat networks is purchased on a commercial basis, placing residents at risk of escalating charges without the protection of a price cap.
The government plans to have Ofgem regulate heat networks by 2026 to ensure fairer billing and better maintenance of the systems.
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