District Heating Price Increases

Please see the following information from LB Southwark, for tenants & leaseholders in relation to district heating increases. At the moment it is difficult to fully understand the exact monetary impact of these changes, but one of the documents suggests that LB Southwark is expecting to pay an additional 180% for gas. We have asked for a meeting with the heating team to better explain this, and will keep residents posted.

Tenants

Here is an excerpt from the Housing Revenue Account, detailing the heating costs for Tenants, from 3rd April 2023

“The situation in Ukraine has significantly exacerbated the position and led to historic energy price inflation not seen before and far beyond earlier predictions. Given rates were set in January 2022, the exceptional circumstances that have emerged subsequently, could not have been foreseen at the time. The corollary is that energy costs are running around £7.2m higher than budget in 2022-23 and that the current charge rates are significantly below the level required to cover the additional cost, requiring an increase of the order of 70% from 3 April 2023. In the short-term, the earmarked reserve will be used to mitigate some of the in-year overspend, but the heating account will fall into deficit by year-end and need to be managed back into balance over a period of 2 to 3 years.”

As most flats are 2 bedroom, the heating costs for most tenants will increase from £15.58 per week to £26.49 per week.

Leaseholders

Click Here – FAQ for Leaseholders