Tenants bring legal challenge over heat network charges

The Public Interest Law Centre (PILC) said it had filed claims against Lambeth on behalf of two secure tenants, challenging “oppressive heating and hot water service charges”.

It added that its clients were “long-standing campaigners against these unfair and unjust charges” and were seeking to raise £10,000 via a crowdfunding page.

Those concerned are on a communal hearing system in which a centralised boiler provides hot water piped to homes.

PILC said this system caused problems because residents cannot opt to install a gas boiler or heat pump and are unable to switch provider as they are required to buy their hot water and heating from the heat network.

It claimed this led to excessive bills as heating charges rose, and neither housing benefit nor universal credit cover these costs.

PILC’s two clients had tenancy agreements that do not include any rules governing increases and do not limit the amount by which charges can be increased.

According to PILC, residents were not provided with adequate information about the heat network before they signed their tenancy agreement, and were unaware they could be evicted for heating arrears. Lambeth had failed to provide information on how bills are calculated.

The grounds of challenge are that the term of the tenancy agreement that Lambeth has invoked to increase service charges is onerous and unfair and in breach of s.62 of the Consumer Rights Act 2015 or regulation 5(1) of the Unfair Terms in Consumer Contracts Regulations 1999, and that continuing demands for payment of accrued rent liabilities, together with other accompanying detriments arising from such liabilities, is contrary to the protection of property in Article 1 of the First Protocol of the European Convention on Human Rights. 

PILC said it was waiting for a court decision on whether permission for judicial review would be granted.

Lambeth has been contacted for comment.

Mark Smulian