Housing estate residents see energy bills frozen

Residents of a housing estate have been told their energy bills will be frozen this year.

Homeowners at the Byker Wall Estate previously saw their bills top £200 per month for using a district heat network (DHN), which charges a fixed fee rather than one based on the amount of energy used.

After a campaign to cut their costs, Newcastle City Council issued more than £56,000 of refunds last year - an average of £646.49 per household.

The council, which owns the DHN, said 167 private homeowners would have their bills frozen in 2026-27, to offer them "stability and certainty".

Energy bills for DHN users were made up of two elements: an energy charge for heating the estate, and an infrastructure charge for maintaining the network.

"While infrastructure costs can vary year to year due to inflation and planned maintenance, the energy charge makes up the largest proportion of residents' bills and is most affected by national energy prices, particularly gas," a council spokesperson said.

"To provide stability and certainty for residents during ongoing cost‑of‑living pressures, energy bills have therefore been frozen for this year."

The fixed charge is only paid by homeowners on the estate and not by those renting from social housing provider Karbon Homes.

This year's prices will be kept at an annual £366.32 infrastructure charge and an energy charge of £18.92 per year per sqm, according to the Local Democracy Reporting Service.

While Ofgem does now regulate heat networks, they are not subject to the energy price cap.

Newcastle City Council said it did not make a profit from the heat network.

However, it said it was now undertaking a review of all its heat networks in light of new Ofgem requirements, which included introducing consumption-based bills wherever feasible and "clear, itemised, transparent billing".