Boiling point over heating charges

FUELLING the fire: one of the boiler houses on the Eldon Street estate which provides communal heating

High energy-using tenants on Oldham’s communal heating system could get a refund following a tribunal hearing against First Choice Homes Oldham.

Single mum-of-two Michelle Cullinane, who was considered a “high” user of FCHO’s communal heating service (around three times the average), had her bill reduced by £200 after the Northern Rent Assessment Panel pronounced charges “excessive and unreasonable.”

She had challenged her bill when rates leapt from 5.5p to 8.1p per kilowatt hour.

The panel ruling opens the door for high-consumption customers to mount a challenge - but FCHO says it may appeal the decision.

Michelle, of Eldon Street estate, found it difficult to pay £31 per week and was granted a £200 reduction between 2011-13.

The Manchester tribunal decided the charges for high-consumption users added a disproportionately high charge for overheads. While it was clear FCHO was making charges for basic overheads, these weren’t spelled out in the rate, making it almost impossible for tenants to identify how their bills were calculated or work out if charges were reasonable.

Michelle’s solicitor Ian Bowen said there could be wider implications from the decision: “Potentially this decision affects any tenant of First Choice Homes Oldham’s communal heating scheme concerned that heating and hot-water charges are too high. At the hearing one of the judges couldn’t believe my client was paying so much a week — he said it was outrageous.

He said each user would have to make a personal claim based on his or her own circumstances

“If FCHO wants to deter lots of people from taking action against them then they need to put their charges down — but I don’t think they will,” he added.

Full-time carer Michelle said: “I was finding it really hard to pay. I’m a single mum with two kids and they were taking so much money from me. People who own their own houses don’t pay that much!”

A spokeswoman for FCHO said: “Two previous tribunals determined the heating and hot water charge is reasonable and one of the previous tribunals contradicts the ruling in the case. As such we are seeking advice about appealing the decision.”