'Even if I use no heating, I'll be charged anyway'

Max Templer received an estimated heating and hot water bill of more than £5,000 for his Peckham flat

Residents in south London have spoken out against what they claim are "gobsmackingly outrageous" bills from communal heating networks.

Among those affected are residents in blocks using heating and hot water from the North Peckham Heating Network in Southwark, and those with communal boilers run by Lambeth Council.

Max Templer received an estimated annual bill of more than £5,000 for his Peckham flat, and he said due to how the system works even if they "had cold showers for a whole year" they would have to pay "a huge bill".

Southwark Council said the issue was being investigated. Lambeth Council said cost increases were outside the council's control and had to be passed on to tenants.

Residents on communal heating, or heat networks, are not covered by Ofgem's energy price cap - because they are not buying their gas directly from one of the energy companies Ofgem regulates.

They are classed as commercial systems - despite often being within residential buildings.

Mr Templer lives on the Gloucester Grove Estate in Peckham and as a leaseholder his service charge includes heating and hot water from the North Peckham heat network.

Mr Templer explained his communal heating system means "you don’t pay for what you use, instead you pay a proportion of what the whole system uses"

It has a communal boiler supplying more than 700 properties in the area.

But his estimated bill for those two things alone amounts to £5,094.17.

“Because the system isn’t metered, you don’t pay for what you use, instead you pay a proportion of what the whole system uses," he explained.

"So even if we turned off all the radiators for a whole year, even if we had cold showers for a whole year, we’d still be on the hook to pay a huge bill."

Heating networks have been criticised as being unfair by residents in Lambeth.

Zach Mendelsohn has lived in Elkington Point for the last 35 years and said he was left in “disbelief” when he realised his bill for 2023-24 had shot up by 353%.

He said it was "gobsmackingly outrageous".

“We don’t even use our heating because the block was refurbished 10 years ago and it is very well insulted," he added.

Carole Donaghy said she resorted to a credit card to clear her bill, adding: "I did not have the strength.... I'd had enough"

Others living in Lambeth are facing similar bills.

Carole Donaghy, who has lived in her Wellington Mills home near Lambeth North for the last 44 years, said she was so concerned about the charges that she resorted to a credit card to clear her bill.

"I did not have the strength.... I'd had enough," she said.

"I've become numb," she continued. "I'm a pensioner, I'm not on pension credit."

Under investigation

In a report published by Southwark Council last month, it admitted the North Peckham Heat Network which serves Mr Templer’s home is using more energy than the average for the borough.

In a statement, the council said: “There appears to be a specific issue with the cost of heating from the network at North Peckham Estate.

"We’re committed to looking in-depth in to this issue raised by residents on the estate.

"Our investigation is ongoing and we will continue to meet with residents to update them directly.”

The North Peckham Heat Network has a communal boiler supplying more than 700 properties, including the Gloucester Grove Estate

Lambeth Council said it had long-term gas and electricity contracts where energy providers set the rates, and extreme inflation in the energy market was responsible for price increases in 2023-24.

It added the costs were outside of the council’s control and had to be passed on to tenants, but it continued to offer support to residents where needed.

A spokesperson said: "Our aim is to work with residents to establish a sensible payment arrangement that aligns with their affordability and can be paid over a more extended period."