London heat network bills jump 300 percent

Heating service charges at Rusper Court in south London have risen by 300 percent since 2019. The increase reflects soaring global oil prices and the specific billing structure of communal heat networks. These systems often bypass the national energy price cap that protects millions of other UK households.

Residents in large buildings on heat network plans pay bills via a service charge rather than directly to a utility provider. This distinction leaves them exposed to market volatility. In Rusper Court, located near Stockwell Station, the building uses a single communal oil boiler. The council passes these fuel costs directly to leaseholders.

Sebastien Cippe, a nurse and leaseholder in the building, reported his heating service charge increased from 1,211.32 pounds in 2019 to 3,867.49 pounds this year. He stated that he is losing sleep and requires counseling to manage the stress. Cippe said he works extra shifts to afford the service charge and dreads upcoming repair costs.

Leaseholders on these plans lack individual control over their heating. The system operates through a centralized boiler that distributes hot water to radiators throughout the building. Even if residents turn off their own heating, they must still pay the full service charge. Because the boiler runs on oil rather than mains gas or electricity, the residents are exempt from the energy price cap.

Cippe requested permission to install a private combi boiler in his flat, similar to units in the building that have done so. Lambeth Council denied the request. He noted that this decision shifts more costs onto residents who are refused individual systems.

The high costs have also hindered residents' ability to sell their homes. Steven Schroder, who lives alone in a one-bedroom flat, saw his bills rise from 998.54 pounds in 2019 to 2,224.17 pounds this year. From 2024 to 2025, he paid 3,249 pounds after being charged nearly 1,000 pounds for boiler repairs and maintenance. He described the charges as comparable to those of a much larger household.

Another resident in a three-bedroom flat reported her heating service charge increased from 1,486.42 pounds in 2019 to 3,310.87 pounds most recently. She complained about a lack of transparency in the billing. She stated that while other repairs show a breakdown of total estate costs and individual property costs, the heating and hot water line items only show the property cost. She said there is no visibility into the cost per unit of energy.

Liberal Democrat councillor Tamora Langley urged Lambeth Council to treat leaseholders fairly. She said residents are under extreme stress and have no control over their heating costs. The Social Market Foundation estimates up to 900,000 households are on communal heating. In 2024, Lambeth Council served 801 eviction notices to tenants over heat network debts, according to a freedom of information request.