Energy prices and charges

Global events over the last two years have caused major disruption to energy markets. This has led to huge price rises for customers across the board. Despite competitive buying through LASER Energy, the council’s gas prices have quadrupled since 2021. Given this market turmoil, both tenants and homeowners have seen unavoidable increases in their heating charges, mirroring what has happened in the wider economy.

In January 2023, government introduced the Energy Bills Discount Scheme (EBDS), which provides a subsidy to heat network providers for 2023-24. This meant the rate increase was lower than it would otherwise have been.

Residents with district heating pay for their heating service in the following ways:

Tenants on non-metered heat networks

These tenants pay flat rate heating charges weekly.  The charge depends on property size and the heating service provided (space heating only, hot water only, or both).

Tenants on metered heat networks

These tenants pay individual heating charges weekly. The charge is calculated according to the borough-wide tariff. This is made up of a standing charge (proportional to property size) and a variable charge (proportional to heat consumption measured by the meter).

Homeowners on non-metered heat networks

These homeowners are issued estimated service charge bills at the start of the year. This is based upon a bedroom weighting of the heating system costs. Charges are adjusted at the end of the year when actual costs are known. Freeholders only pay on actuals at the end of the year.

Homeowners on metered heat networks

These homeowners are issued estimated service charge bills at the start of the year based upon estimated consumption and estimated estate specific tariff (accounting for gas rates for the specific boiler house). Charges are adjusted at the end of the year when actual property consumption and estate specific tariff can be finalised. Freeholders only pay on actuals at the end of the year.

The exceptions to the above are some newly built blocks where an external heat billing agent was appointed during construction. Both tenants and homeowners in these blocks pay heat charges directly to a third party. More information on these blocks, and other metered charges can be found within the heat metering pages.

Page last updated: 22 February 2024