A member would be keen to hear how other local authorities manage an overlap in billing. They have introduced Pay As You Go (PAYG) billing following optimisation works to end district heating.

Individual meters have been installed in existing flats which previously had a district heating system. This was done to comply with upcoming legislation. Historically, residents have been charged the four-year average of the actual cost of providing heating and hot water, and this was paid through their service charges. Tenant service charges change in October each year, and are made up of the actual costs from the previous financial year. So since October, residents have been paying for the heating and hot water they used in 2024/25, and will continue paying this until September this year.

The charges (averaging about £14 per week) are on top of what they are now paying directly via Pay as You Go meters, so naturally the tenants feel they are now being over charged, as they’re paying two lots of heating and hot water – one in arrears and one currently.  Any insights or advice would be greatly appreciated.

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