Heating charges are waived by council

Reporter: by JANICE BARKER
Date published: 30 October 2009


HOMEOWNERS on district heating schemes who underpaid bills last year will have their charges waived to bring them into line with council tenants.

First Choice Homes Oldham (FCHO) has taken action after the bills for the financial year 2008-09 were sent out, the first after heating meters were installed.

The unerpayment occurred because the meters were initially set at rates based on predictions of consumption — but some tenants and a small number of people who have bought their own homes and are leaseholders used more heat than predicted.

While council tenants were told that, on this occasion only, the 2008-09 underpayments would be waived, leaseholders were sent bills and told they would have to pay.

One Royton leaseholder facing a bill for over £250 branded the difference unfair. Another resident said it amounted to a subsidy for tenants.

Now FCHO’s chief executive Hugh Broadbent has said the situation will be reviewed.

He added: “There are very, very few leaseholders in this position, but we will go back to the ones affected.

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“We will treat them exactly the same as tenants.”

The Royton leaseholder said: “I am very, very pleased. I was preparing to adjust my direct debit to pay the underpayment until I talked to my neighbour who is a tenant and had over £200 waived. First Choice Homes don’t seem to think we talk to one another and find out what is going on.”

Heating services staff are now adjusting the metering charges to reflect actual consumption.

l In 2007, a £1 million black hole was found in the council’s finances because when energy charges rose nationally, costs to people on district heating did not match the increase.

Householders were then given the individual meters which charge for the heat actually used, rather than a flat rate payment regardless of how much or little was consumed.