Peckham resident exposes Southwark’s ‘inflated’ energy bills

By Robert Firth, Local Democracy Reporter

A resident is challenging Southwark council’s energy bills on his estate after highlighting the fact tenants are being charged £1,000-a-year more than typical households.

Leaseholders in the average three-bed flat on the North Peckham Estate were slapped with annual bill estimates of more than £2,500 for heating and hot water by Labour-run Southwark council earlier this year.

They are among more than 700 households who receive their energy through the same district heat network in North Peckham, consisting of a communal boiler which supplies heating and hot water to properties via a network of pipes.

Southwark council insists district heating is cheaper and more efficient than individual boilers in the long-run. But it is not covered by energy regulator Ofgem’s price cap, which limits the amount suppliers can charge.

The council’s bill estimate for a three-bedroom property on the North Peckham heat network in 2024/25 was £1,000 higher than Ofgem’s price cap of £1,568, which is based on the usage of a typical household.

Max Templer, a leaseholder in a three-bed flat served by the communal boiler, began investigating the issue himself after the council dragged its feet in responding to his concerns about the high energy bills.

The 32-year-old said: “The figure of more than £2,500 rang alarm bells for me because it’s so much higher than the energy price cap. The answer they [the council]  gave that the system is more efficient and they pay less, it’s nonsensical.

“It would almost certainly be cheaper to give everybody an individual boiler. The council has got an opinion, it’s almost an article of faith, that district heating networks are more energy efficient. But nobody has looked into it.”

He added: “It’s like buying an electric car but leaving the engine idling 24/7. It’s a more efficient way of heating homes, but it’s only more efficient if you administer it properly.”

Through making enquiries with the council, he discovered the district heat network that serves his flat was using between 30,000 and 35,000 kilowatt-hour (kWh) of gas annually for heating and hot water in the average property.

The figure is three times higher than Ofgem’s estimated typical gas consumption for a three-bed property, which is 11,500 kWh per year.

Currently none of the homes served by the North Peckham heat network have meters, making it difficult for residents to prove their usage is less than estimated by the council.

Since carrying out his investigation, Mr Templer has been invited to present his findings to council staff. He said: “I do find it shocking that it does not appear that anyone within the council has been looking into this.

“It does seem bizarre that I have been asked to present to council officers and I am a member of the public. All the information I have is from the council. I don’t work for them. They are not paying me.”

Alex Dalman, another resident whose two-bed flat is on the same heat network, said her service charge bill estimate – which includes heating and hot water – had tripled from around £2,000 per year in 2019 to approximately £6,000 this year.

The 37-year-old, who has lived in her property for five years, said: “They [the council] are completely ripping us off. The block is really well built and insulated. It [the heating] probably goes on a few times in winter, but that’s it. It  feels like there’s a really simple solution, which is to put meters in everybody’s properties.”

Councillor Victor Chamberlain, leader of Southwark’s Liberal Democrat opposition, praised Mr Templer and other residents for exposing the problem and said it reflected wider issues with the council’s housing department. “Residents shouldn’t have to do their own investigations to get justice,” he added.

Cllr Sarah King, Southwark’s cabinet member for council homes, held firm that district heat networks were more eco-friendly and better value for residents in the long-run.

She said: “The cost of fuel has risen exponentially over the past years, meaning prices are very high. As we buy in advance, the more recent reduction in price is not yet reflected in bills. The costs should come down and the heating system offer significant savings over time.”

Pictured top: Max Templer on the North Peckham estate (Picture: Robert Firth)