Energy bill warning: 500,000 home facing huge rise in bills

An energy bill update document

Half-a-million homes face a huge rise in energy bills

PA
Jack Walters

By Jack Walters


Published: 09/06/2023

- 19:17

Thousands of British households have been excluded from the energy price cap

Around 500,000 UK homes could face huge rises in energy bills, a report has warned.

Properties in communal heat networks, which are often resided in by those on low income, risk being stung by a rise in the cost of powering their homes.


The news comes as bills for other Britons start to tumble.

The reason why costs could soar is because buildings with heat networks usually require energy to be purchased in advance.

A latest energy bill statement

Properties in communal heat networks, which are often resided in by those on low income, risk being stung by a rise in the cost of powering their homes

PA

Price rises which impacted British households last winter are now trickling down to these specific bill payers.

Labour MP Apsana Begum, who represents constituents in Poplar & Limehouse, told The Guardian that some homes have seen gas bills double.

A Lambeth resident claimed their bill had soared by 350 per cent, meaning they cough up an extra £76 a week.

But the price rise for around half-a-million households comes as the Government’s £400 support package comes to an end.

Around 480,000 homes have reportedly been impacted by the move, with many residents living in council-owned tower blocks.

The energy price guarantee had capped bills at £2,500 a year.

However, the support does not apply to homes on heating networks.

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

A handheld SSE smart meter for household energy usage is held next to an electricity meter.

Around 480,000 homes have reportedly been impacted by the move, with many residents living in council-owned tower blocks

PA

Communal bills mean residents divide up costs based on how many hot water taps and radiators there are in each property.

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."

An energy bill lays next to a gas stovePA

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.”

You may like