Changes to communal heating

Why is the council changing the communal heating service, and communal electricity charges now, rather than waiting until when charges are usually changed in April?

We need to act now to spread the additional costs of  increased global gas prices, to reduce the cost of the service to residents and to help limit further rises. 

If we did not increase communal electricity charges now we would have a deficit of over £1m by the end of the year. This cost increase will be covered by an increase to housing benefit or the housing element of Universal Credit for the 70-75 per cent of residents receiving these benefits. 

The heating reserve is £1.126m and comes from any surplus between heating and hot water charges (which are based on expected costs) and the actual costs to the heating pool, this is used to help manage any increased costs in future years. We are applying the full heating reserve now to help contain increases this year.

Can you tell me more about when my communal heating will be on? 

We have reduced the heating season by six weeks – heating will go on four weeks later than previously and go off two weeks earlier. The number of hours the heating is on every day will change from 18 hours to 13 hours.

Most residents’ communal heating will be on from 13 October 2022 and will be switched off on 11 May 2023.

You should have received a letter telling you about the hours that heating will be on for your home. The systems will typically be on for 5 hours in the morning and 8 hours in the afternoon/evening.

We let residents know in mid-September that we will be reducing the dates communal heating is on (known as the heating season), and the hours of operation, to protect them from rising energy costs.  Please accept our apologies for the short notice, but we had to wait for news of the energy cap announced by the Government and it was essential to act quickly to reduce the impact of rising energy costs on your bills.

We are closely monitoring weather conditions and temperatures in your buildings. Although there was a colder spell in late September, the outlook for early October looks more stable currently and reflects normal temperatures for this time of year.

If you are unsure about the hours of heating you will receive, please call the Communal Heating Team, Project Liaison Officer on 020 7527 8239.

Why have some blocks got their heating on now when mine is off?

Some sites have slightly different arrangements because they have different heating distribution systems and their heating is directly linked to their hot water. On two sites where building fabric is poorer residents receive a slightly longer season and, on one estate, residents pay 15 per cent more to have heating available for longer.

Why are you only providing 13 hours of heating and delaying the start of the heating season?

Even with the Government Energy Cap the cost of gas has more than doubled, and we need to make savings on behalf of residents and provide heating at times which meets most people’s needs.

Delaying putting the heating on is something many households are doing across the country to help manage costs this winter. This was a hard decision to make as we know residents rely on this service, but we also know they are struggling with the cost of living. We are keeping a close eye on the weather and taking temperature readings in blocks when temperatures have fallen to make sure we have got the balance right.

Heating homes for 18 hours a day meant communally heated homes used a lot more gas than the average home – 18,404 kWh (units of energy) against the average of 12,000 kWh. Because gas prices have increased so much, using so much gas has become very expensive. Reducing our heating season by six weeks in total and heating service hours by five hours a day is contributing towards making a 25 per cent cost saving.

Our residents have different schedules and some residents have fed back that they need more or less heating, or heating at different times. With communal heating systems, we need to balance all your needs while managing costs.

We will consult further with you later this year to and will ask if 13 hours per day is the right balance of heat and cost. We want a service that gives access to heat and hot water when you need it, at a price you can afford.

Why have you chosen to take four weeks off at the beginning of the heating season and just two at the end?

We looked at data showing the London average temperatures over the last 20 years and identified that the need for heating is greater during early to mid-spring, as cold snaps in early autumn are less likely to be sustained and minimum temperature averages are higher.

We will monitor forecasts and temperatures when necessary in our blocks and can bring heating on earlier to cover a sustained cold snap.

Residents are too cold with the heating off. Why are you not turning it back on?

If we put on systems before temperatures drop, increased costs will then need to be passed on to residents when we next set our charges.

We are closely monitoring weather conditions and temperatures in our buildings. Although we have had a colder spell in late September, the outlook for early October currently looks more stable and reflects normal temperatures for this time of year.

What can I do to help keep bills down for myself and other residents?

Whatever the type of communal system, the less heat we all use the lower the bills will be overall.

If everyone only has radiators on in rooms when you need them, the overall cost will be lower. If the systems use less gas than predicted, that saving will be passed on to residents.

If your radiator’s valves are not working properly, please call 0800 694 3344 or report the repair online to arrange to have them checked.

How much would my heating cost me every week if the council hadn’t made the decision to reduce the heating season and heating hours?

With 18 hours of heating a day, for a 36-week season, the average cost for the rest of the year would be £52.28 per week. As we have applied the heating reserve - funds accumulated from any surplus within the heating pool and used to smooth cost increases - this would bring costs down to £32.03 per week.

Applying the heating reduction (13 hours of heating a day, for a 30-week season) has reduced this further to an average of £17.40 per week. Costs will be more for a family-sized home as most of our homes are one bedrooms and studios.

So the average weekly cost from 28 November for the reduced service (13 hours of heating a day, for a 30-week season) will be £17.40.

What if I need more or less heat?

If you are a resident who doesn’t need heating during the day, the best thing you can do is turn your radiators down when you don’t need them. This will help to reduce the cost of the service for everyone, as boilers won’t have to work so hard.

If you need more heat than most other residents, you may want to use a temporary electric heater to top up your heating when you need it, in the part of your home you need it most. You will pay for any energy you use as part of your electricity bill. Some electric heaters are cheaper to run than others. It is important you understand the costs of electric heating as it can be costly to run – that's why we recommend only using it when and where necessary.

Tips to manage how much you spend on topping up with electric heating

• If you have to use electric heaters, oil-filled heaters with a thermostat are usually the best choice as they still give out heat even when they are switched off after use and you can control the temperature of the room to prevent over-heating and wasting money.
• Put on additional layers of clothing to reduce the need for using an electric heater as much.
• Use hot water bottles or electric blankets to reduce the need for using the electric heater as much.
• The use of timer plugs can help to control your usage of electric heaters, especially those that don’t have a thermostatic control. You can decide to have it on between 1-3pm and then 5-7pm for example and know that you have spent about £4 in doing so.
• Only use electric heaters in the room that you are using and close doors to keep the heat in that room.
• Use a thermometer to make sure you are not heating the room above the desired temperature (18C for those that don’t have a health vulnerability made worse by the cold and up to 21C for those that do).
• If you are buying an electric heater, check the wattage of the appliance - 1000Ws or 1KW will cost about 45p an hour to run.

What is the Government Energy Cap?

The Government Energy Cap was introduced from 1 October 2022 and limits the amount energy suppliers can charge per unit of gas. 

It’s important to remember the Government Energy Cap is not a maximum amount that your energy bill could be. Just like before, the amount of gas you use has a massive impact on the cost of your energy bills. This is the same whether you get energy through communal heating or straight from an energy company.

The Government has given assurances that residents on heat networks will be no worse off than those with a regular domestic supply, but they have only told us how this will work for the next six months. We are monitoring the situation closely, so we pass on every penny of government support to residents.

Why do I pay for my heating all year round when I only get heating for part of the year?

Heating costs are spread across the whole year to help residents manage the cost of their service.

We estimate the total costs of providing the service across your heating season in time for the start of the financial year and divide it across 52 weeks. Charges are set each year ready for implementation in April.

If we did not do this, the weekly charge would be higher for the weeks of the heating season and then there would be no cost at other times of the year.

Why is the council taking a decision on our heating now, before it knows the outcome of any consultation?

We have taken this urgent action to reduce costs at the time of year which will impact residents least. By delaying the start of the heating season and then reducing hours of operation, we will reduce bills.

We asked residents to let us know if they agreed with the changes we made or if they thought we should go further. We received 719 responses, of which 67 per cent agreed with our changes or though we should go further. Here is a summary of responses.

If I am worried about being cold in my home, what should I do?

Residents who are unwell or more vulnerable to the cold may need more support. Please contact Housing Direct on 0800 694 3344 for support with a temporary heater to help top up the temperature in a room in your home. Housing Direct can also refer you to the council’s seasonal health intervention network (SHINE) who offer help and advice with keeping warm and reducing costs.

Find more advice about keeping warm in the winter.

What support can I get to manage my energy costs?

All households will be receiving additional support with their heating costs this winter of £400 through their electricity supplier under a Government scheme. If you have not been contacted by your supplier with details of this, contact them to find out more. Residents in receipt of Universal Credit or Housing Benefit will get further support of £650. You should have already received £326, the first part of this payment, and a further payment of £324 will be paid later in the year.

There is additional winter fuel payment for older residents and an additional £150 Cost of Living payment for those receiving disability benefits.

More information on help with energy bills.

Is there support if I’m struggling to pay my energy costs?

The Government payments are to help residents through the winter, but if you are struggling please contact our team of friendly advisors for support or advice.

Our friendly team of advisors can help you work out what benefits and financial support you are entitled to and help you to make a claim. They can also advise you on ways to make your money go further and put you in touch with other local services that may be able to help.

Call: 020 7527 8222

Email: heretohelp@islington.gov.uk

What is the council doing to give me more control over my heating costs?

The council is rolling out heat meters to 600 homes in 2022. This will mean that residents will be able to control their costs through pay-as-you-go meters installed into their home and they will only pay for what heat they use. Charges will be based on the cost of delivering heat to each building, taking into account the cost of gas, the efficiency of the systems and boilers serving it, and the costs of the pay-as-you-go service.

New regulations from Government means we need to provide heat meters where they are viable. The viability tool provided by the Government to assess where meters must be installed is based on whether we expect the resident will save on costs savings because of the installation. These assessments were based on the cost of gas at the time, which were lower than in October 2022. With the much higher gas costs since 1 October and into the future, it is likely most systems will be viable when next assessed. We are now working with our heating contractor to develop a further programme of heat meter installations and will procure a delivery partner to deliver this from 2023/24.

The way some of our heating distribution networks are designed make it very difficult to put metering in place and we are working with industry experts to overcome these challenges.