Residents of two tower blocks, many of whom are pensioners, have expressed feeling like “second class citizens” after their social landlord implemented a sudden and substantial increase in heating and hot water costs.
Occupants of Woodall and Hamilton House in Bloxwich, Walsall, report that boiling a full kettle is now a more economical option than filling a washing-up bowl with warm water.
On October 1st, Woodall House tenants saw their energy prices surge from 4p per kWh to 13.75p, while in Hamilton House, the unit price rose from 4p to 17.67p per kWh.
Walsall Housing Group (WHG), the landlord, stated that it could no longer afford to subsidize the “low rates.” They encourage customers with concerns to contact them for assistance.
The housing group had removed individual gas boilers from the flats in 2021, citing safety concerns, and replaced them with a central heat network in both buildings.
While WHG had been covering a “significant portion” of the cost, executives said it was no longer financially viable to continue subsidizing energy rates.
According to data from the energy price comparison website Uswitch, the average cost of gas in the UK is 6.29p per kWh, while electricity averages 26.35p per kWh.
David Turner, 73, a resident, described himself as “very frugal” with his heating, noting that he only heats one room.
“Even with such measures, I’m using £3 a day,” he said. “It’s truly astronomical. I don’t expect everyone to live as I do. I have arthritis, so I’m sensitive to the cold.”
Kathleen Haughton, 96, conveyed her confusion regarding the new pricing structure.
“We attended a meeting in the community room, and they had already implemented the increase,” she explained.
“We hope to see the prices decrease. You need heating when you’re sitting in your flat.”
WHG maintains that the average user is still paying less than the national average for their heating and hot water.
Bloxwich East councillor Mark Statham has criticized the housing provider for the price discrepancies between the two blocks.
“The divergent pricing can only be explained if they are analyzing the revenue generated from each block and dividing it by the operational costs,” he argued.
Adding to the residents’ concerns, the heating in Hamilton House was reportedly out of service for around 16 hours over the weekend, an issue residents claim occurs nearly monthly.
“I find it almost insulting,” Mr. Turner stated. “It feels like we are being treated as second-class citizens to some extent.” He added, “We understand inflation is rising, but this increase far exceeds it.”
Rob Gilham, a director at WHG, assured that the firm would never intentionally profit from heat supply.
“For years, we have maintained charges well below the actual cost by covering a substantial portion of the expense ourselves,” he stated.
“Customers have been paying approximately £200 per year on average for heating and hot water, which is considerably less than the expected energy costs for these types of properties.”
“It was no longer sustainable to continue subsidizing these low rates for a small number of customers.”
Mr. Gilham clarified that the rate increase means customers are now paying the “full and fair” cost of their energy consumption.
He stated that an average user would pay between £412 and £530, in comparison to the national average of £1,266, as reported by the regulator Ofgem.
“We recognize that some people are making careful decisions about how they use energy, and we urge anyone who is struggling to contact us.”
“We provide confidential money advice and one-to-one support, and no customer will be disadvantaged for raising a concern.”
This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.
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