Energy supplied to shared buildings is often classified as commercial supply.
Energy supplied to shared buildings is often classified as commercial supply.

Shabana has written to the Department for Business, Energy and Industrial Strategy regarding soaring energy bills in shared buildings.

The energy that is supplied to shared buildings for heating and hot water through a heat network is classified by Ofgem as commercial supply, rather than domestic. The price cap only applies to domestic energy, meaning constituency are facing huge bills as suppliers are passing on the huge wholesale price increases unchecked.

Many constituents affected by the issue are also victims of the cladding scandal.

In her letter to the Secretary of State, Shabana asks the Government to outline what action will be taken to protect those living in buildings using heat networks from sky high energy bills.

You can read the letter in full below.


Letter to the Secretary of State

Dear Secretary of State

I am writing following concerns raised to me by constituents who are living in flats about the soaring cost of their energy bills.

The energy that is supplied to shared buildings for heating and hot water through a heat network is classified by Ofgem as commercial supply, rather than domestic. The price cap only applies to domestic energy, meaning my constituents are facing huge bills as suppliers are passing on the huge wholesale price increases unchecked.

It has been reported that this is impacting around 500,000 homes across the country, with residents unable to bring costs down or shop around for better deals as the supply is arranged by the building owner.

Constituents have shared with me that the rates they are getting charged are increasing by up to 246%, taking quarterly bills to almost £2,000. This is unaffordable for families in my constituency and is adding to the significant financial pressure many of them are under as a result of the cost-of-living crisis caused by the rise in food prices, fuel prices and the imminent national insurance rise.

Many of those affected by this issue are also victims of the cladding scandal, and this is yet another cost with which they have been unfairly burdened simply because of where they live.

One constituent has told me that if the price cap did apply to his energy bills, he would be paying 50% less. It cannot be right or fair that those affected are lumped with this extra cost because the Government have not considered them.

I ask that you outline what action the Government will take to protect those living in buildings using heat networks from sky high energy bills.

I have also copied a version of this letter to the Chancellor of the Exchequer, and the Chief Executive of Ofgem, and I look forward to your response.

Yours sincerely

Shabana Mahmood

Member of Parliament for Birmingham Ladywood

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