Lib Dems call for Government intervention over skyrocketing heat network fuel bills

Southwark Liberal Democrats have called on the Government to investigate several cases of leaseholders facing extortionate energy bills.

Southwark Liberal Democrat Group Leader, Councillor Victor Chamberlain has written to Miatta Fahnbulleh, Energy Minister and Labour MP for Peckham, highlighting issues raised by leaseholders on the North Peckham, Consort, and Gloucester Grove estates.

Earlier this year, residents on the North Peckham estate brought a case to Council Assembly after receiving bills of more than £2,500 for heating, around £1000 more than what energy regulator OfGem say is a “typical” bill.

An investigation by leaseholder Max Templer, showed that the estates communal boiler system was using three times more gas than typical for homes elsewhere.

Unlike most households with individual boilers, residents on heat networks are not protected by Ofgem’s price cap, which limits bills to £1,568 for the typical household.

Mr Templer said: “Based on the current usage of the network, North Peckham is likely losing somewhere in the region of 65 to 80 per cent of the heat generated at the boiler house before it gets to people’s homes. This is indicative of decades of failure by the council to maintain these networks.

“The council needs to put a service charge cap in place to protect leaseholders from the excessive gas costs associated with networks like this.”

Responding to the deputation, the council promised to investigate, but the Liberal Democrats say the local authority should have realised something was wrong “much sooner”. 

Similar problems have since been brought to light by leaseholders on the Consort, and Gloucester Grove estates across Southwark.

The Liberal Democrats have asked the Energy Minister to take these experiences on board nationally, to prevent the issues being repeated across the country.

Cllr Chamberlain said: “It’s unacceptable that Southwark council has left residents facing extortionate energy bills due to their mismanagement. We need a full investigation to hold them accountable and ensure leaseholders aren’t ripped off like this again.

“The new Energy Minister needs to ensure her Labour council wake up and ensure residents – her constituents – can get the fair deal they deserve.”

Miatta Fahnbulleh, Energy Minister and Labour MP for Peckham has been approached for comment.

Pictured top: A general view of Manaton Close on the Consort estate (Picture: Facundo Arrizabalaga)