The council’s Policy and Resources committee and Cabinet will discuss a report that proposes to reduce the amount some South Essex Homes (SEH) residents pay for their gas energy.
The report explains how this affects those council tenants who pay a heating charge as part of their rent. This is because charges for 2023/24 were set using estimates given by the energy companies in December 2022, but since then the wholesale cost of gas has gone down considerably.
Under The Heat Network Regulations 2014, SEH levies heating charges to tenants who get their heating and hot water from a communal system.
The report suggests an average 70% reduction in the bill for tenants from Monday 4 September 2023 to reflect the reduction in costs.
Cllr David Garston, cabinet member for housing and planning, said: “The previous charges set were based on forecasts supplied by energy companies which predicted rises of 105% compared to 2022/23.
"Thanks to an easing in the utility market and tying into lower cost energy deals until March 2024, this means the rise will be 28% on average. If we don't adjust the prices charged to tenants, there will be an approximate overcollection of £500k.
“It is therefore right that SEH are proposing to make immediate adjustments to bills to reflect the reduced energy charges as we don't want tenants to overspend and potentially be out of pocket as a result.”
If agreed, the adjusted charges will come into effect on Monday 4 September 2023.
The full report will also be discussed at Policy and Resources Committee on Wednesday 12 July, ahead of Cabinet on Tuesday 18 July and can be found on our website.