Residents of the Byker Wall estate in Newcastle have been granted a freeze on their energy bills for the upcoming year, providing relief after some saw monthly costs exceed £200. The fixed fee for the estate's district heat network (DHN), which had sparked complaints, will remain unchanged at an annual infrastructure charge of £366.32 and an energy charge of £18.92 per square meter per year.
Last year, Newcastle City Council issued over £56,000 in refunds to homeowners—averaging £646.49 per household—after a successful campaign to reduce costs. The council, which operates the DHN, stated that the freeze applies to 167 private homeowners and aims to offer "stability and certainty" during persistent cost-of-living pressures.
The DHN bills consist of two parts: an energy charge for heating and an infrastructure charge for maintenance. The energy charge, which is most affected by national gas prices, makes up the bulk of residents' bills. Notably, the fixed charge applies only to homeowners, not to tenants of social housing provider Karbon Homes.
While Ofgem now regulates heat networks, they remain exempt from the energy price cap. The council has launched a review of all its heat networks to comply with new Ofgem requirements, including a shift toward consumption-based billing and more transparent itemized statements. The council emphasized it does not profit from the heat network.