People living in a new block of flats say their “inefficient” green energy system is leaving them with bills far higher than they should be.
The 200 flats at Victoria Point in Ashford are on a shared heating network, with each individual house connected to one central boiler.
But residents say the building is constantly boiling hot and they would never have moved in if they had known how much they would be paying for heating – including covering the payments their neighbors missed.
The billing agent for Victoria Point Ginger Energy admits that for every three units of gas paid for, two disappear into the atmosphere due to the inefficiency of the heat networks.
One resident, Adrian Esse, told KentOnline: “The heat is literally pouring out of the pipes and there’s nothing we can do about it.”
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It comes as the government bans gas boilers in new-builds from 2025, meaning it will be a mandatory requirement that low-carbon heating systems be installed instead.
But those living in Victoria Point – where a two-bed currently sells for £365,000 – say more needs to be done to regulate their energy bills as they feel their monthly charges are “inherently wrong”.
This includes a £1.76 per flat ‘bad debt’ recovery fee covering missed payments by other residents.
They also have to pay for debt management, billing fees and ongoing charges, which add up to £15.77 per flat each month – before their usage even adds up.
Mr Esse, who moved into the block in January 2021, brought together a group of neighbors who are unhappy with the discrepancies in their bills and are calling for improvements to the heating network.
The 44-year-old told KentOnline: “They are saying that because we are a community we should pay for it as a collective, which I think is inherently wrong.
“If people don’t pay, we all pay.
“If I had known any of this was going to happen sooner, I would never have moved in.
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Mr Esse says his first bill – which came after he had been living there for six months – was about £400 and then the charges started “going up and up”.
“I’m told that for every unit we use, they use three, which means two units of heat are lost to the atmosphere, but we’re still being paid for those,” he said.
“This is because there is not enough insulation in the building. The upper floors are much warmer as you go up.”
Resident Yasmin, 56, says her winter bills are about £180 a month, which she says is too high for a small, energy-efficient flat.
“With the energy crisis, I expected the bills to go up, but they went up a lot more than we expected. They tripled in size,” she said.
He also opposes having to pay more to cover other residents’ debts.
She added: “It’s the government that said all new builds have to have heat networks so they should be monitoring that.
“There should be an ombudsman to monitor this and make sure it’s fair for tenants.”
District heating is considered one of the most cost-effective ways of reducing carbon emissions from heating.
Despite the building being only three years old, it has now received a £21,600 government grant to help find ways to make the network more efficient.
Mike David Markham, 21, and Dylan Roberts, 18, moved from their family homes to their studio apartment in Victoria Point six months ago.
After a month of living there, they noticed that even though they were “barely using” their heating, they received a bill in January for £92.26.
Mr Markham said: “We live in a studio flat so it’s one room. It has two radiators and that’s it.
“I feel like they’re making fools of us.
“When I came to inspect the apartment, there was no mention of the heating network.
“Our heating is off, but it’s still cooking.
“I’m fully prepared to pay for the heat I use, but if Joe Bloggs two floors up didn’t pay for the heat, why am I paying for him? That’s not right.
“We’re six months into a one-year lease. If it lasts, it will drive us away.’
Damion Francis, who lives with puppy Rogue, says his bills “shot up” six months ago and that Ginger Energy told him he was “paying for other unpaid bills that weren’t mine.”
The 32-year-old said: “It doesn’t say that’s the case when you move here.”
He pays about £30 a month because the corridors are “so hot” that it heats up his flat so he doesn’t have to turn on the heating.
Mr Francis says there are also a number of maintenance issues with the building awaiting repair, including faulty intercoms, exterior lights, garage doors and a lack of CCTV cameras.
“I don’t feel we are getting good value for money,” he added.
The government says grid heat is “a vital part of how the UK reaches its net zero targets, as it is one of the most cost-effective ways to decarbonise heating in built-up areas”.
Currently, however, heat networks, including the one at Victoria Point, are only 35% to 45% efficient, meaning that 55% to 65% of energy is lost before it even reaches individual apartments. The average efficiency of a domestic gas boiler is about 84%.
As the technology is still in its infancy, there are currently no sectoral protections for heat network consumers in England.
But that responsibility is due to fall to Ofgem in 2025.
Under the new regulations, families and businesses connected to the heating network would receive greater protection, such as compensation in case of loss of access to heating, fairer prices and clearer and more understandable billing. This will give customers similar consumer rights as people living on traditional gas and electricity connections.
A spokesman for Centrick, which manages Victoria Point, said it had no involvement or influence in the design or construction of the heating system.
They added: “We recognize and understand the challenges that heat networks bring to residents and are actively working to improve the efficiency of the network – including successfully securing £21,600 in grant funding for an optimization study to review the effectiveness of the heat network and identify opportunities for improvement.
“We are also working with the residents to continuously improve efficiency in the building, including submitting proposals for, for example, more efficient communal lighting.
“We are aware and communicating well with residents about the occasional intercom failure, with plans put forward to replace the platform when funds are available and without undue pressure on the service charge.”
Ginger Energy says that although there are problems in Victoria Point, the way their bills are calculated is typical of homes with heat networks.
A spokesman said: “The network runs on gas and to avoid disconnections as part of the development, gas suppliers must be paid on time and in full to ensure continuity of service.
“Therefore, while debts are actively collected from non-paying residents, a small subsidy is collected from all residents to ensure sufficient funds are available.
“This is a standard, legitimate practice in all apartment buildings, which enables timely payment of gas invoices.
“It’s important to understand that the tariff compares to how debts are collected, the tariff is reduced for everyone.”