HUNDREDS of Inverclyde social housing tenants who have already been hit by huge rises in their heating bills are facing the prospect of more crippling increases, a campaigning councillor has warned.
Labour’s Colin Jackson says he discovered there is no regulator for district heating systems such as that run by River Clyde Homes (RCH) in the Broomhill area.
Under the current laws, residents connected to district heating systems are not protected by energy regulator Ofgem, unlike those who use traditional gas and electricity.
RCH tenants in Broomhill were hit by increases of up to 115 per cent in their bills last year.
The housing association says it has no plans to increase bills this year – but has admitted that pledge is dependent on fluctuating energy costs which it cannot control.
But Cllr Jackson says he’s worried that people all over Inverclyde could be hit by severe hardship in the coming months thanks to the lack of an energy price cap and cuts in the Winter Fuel Payment to pensioners.
He told the Tele: “Tenants connected to these systems have not been made aware that unlike the majority of us, those on district heating systems have no rights. There is no regulator for district heating.
“This is wider than just Broomhill. There are many more people connected to these community boiler systems.
"At a time when we are in a cost of living crisis, when the new UK Labour government has cruelly cut the winter fuel payment to pensioners, these tenants are at the mercy of their landlord. RCH can do whatever they want.
"For instance, RCH recently increased the cost of hot water and heating for tenants in the East on of Greenock and Broomhill by 115 per cent and introduced a standing charge for those connected to their biomass boilers.
"If they decide next year that another 115 per cent increase is needed, then there is nothing that can be done to stop them.
"If your ordinary supplier, such as Scottish Power, had raised charges by so much, you could report them to OFGEM, but not those connected to district heating system."
Broomhill resident Zoey Gatens, a mum-of-one who runs a local wellbeing group, said: "People here are really suffering from the increases especially the standing charge.
"People have to choose between running a bath or doing their dishes. It used to be that £5 would stretch to a couple of days; now it is done in a couple of hours.
“Even if you don't use anything at all, you still have the standing charge to pay.
"There are people talking about moving out because they just can't afford it. What is worrying is that we think there are people who are struggling with this on their own."
The Scottish Government has been an active funder and promoter of district heating systems for new social housing developments.
Alasdair Allan MSP, Scotland’s minister for climate action, says the government is working on frameworks for district heating systems, but that the UK Government is responsible for consumer protection.
Cllr Jackson added: "I would urge the RCH board to step in and do the right thing. Ultimately, they are responsible and can initiate a reversal of these charges. It is time to put people first."
A spokesman for RCH said: "We are committed to supporting our customers during this challenging time and will continue to provide affordable and sustainable heating solutions.
“Despite rising energy costs, we do not anticipate any increase in district heating charges. However this is subject to movement in energy costs which are outwith our control."
Councillor Chris Curley, who was a member of the RCH board until last month, defended the hikes.
He said: "Considering the price of the energy supplied in the Broomhill community biomass system, the RCH board fully considered the impact of any rise in energy costs to tenants when bringing in the first increases to Broomhill residents since the system was initiated in 2016.
"After this rise, the costs were still less that than the energy cap, and the energy in Broomhill was being provided at less than cost to RCH.”
A Scottish Government spokesperson said: “Our Heat Network Support Unit has been working with RCH to expand and decarbonise their current heat network at Broomhill. This study is due to conclude shortly.”
An Ofgem spokesperson said: "“Heat networks will play a key role in delivering the government’s net zero ambitions.
"We are working with them to design a regulatory regime that delivers improvements for heat network customers, transparency and powers that allow Ofgem to act when needed.”
A spokesperson for the Department for Energy Security and Net Zero said: “Communities should be able to benefit from low-cost and efficient heat networks and we are bringing in regulations to ensure this is the case.
“While we cannot comment on individual cases, social housing tenants can seek redress for issues such as this through Consumer Scotland.
“We will also ensure Ofgem have the powers they need to investigate and intervene where prices are disproportionate or unfair.”
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