Agenda item

By Councillor McKenzie - Westfield Court

“Council:

Notes:

·                Westfield Court is a mixed tenure block of 92 flats in which the Council is a minority owner.

·                The Council is the Property Factor for the entire block.

·                The estimated communal heating charge paid to the Council by owners and private tenants of Westfield Court has risen substantially* in 2024/25 compared to the rate charged in 2023/24. 

·                A substantial charge* was issued on 05/10/23 to “balance off Common Charges” from 2022/23.

·                Residents have not received any information on how the energy is procured by the Council, such as: the name of the energy supplier, the rate charged in Kilowatt hours and the standing charge.

·                Commercial gas and electricity used by heat networks was capped in 2023/24 under the UK government’s Energy Bills Discount Scheme (EBDS), but this price ceiling was abolished on 31 March 2024.

·                The poor condition of the communal heating system means that residents experience frequent loss of heating and hot water, particularly during winter months.

·                Reports of declining standards of maintenance of the building and its surrounding areas, and a decline in standards of communication with residents.

·                The Housing Revenue Account (HRA) Capital Programme 2021/22 states:

“A full building condition survey has been commissioned for Westfield Court; to inform the long-term asset management strategy of the block. The partial replacement of the heating system is due to complete in early 2021/22.”

·                It has been reported to Finance and Resources Committee on 3 March 2022 that the condition survey has been completed and an update on proposed works was provided to ward councillors on 09/06/22. However, no further details have been reported, no heating system replacement has occurred, and there has been no reference to Westfield Court in subsequent HRA capital programmes.

·                The Fees and Charges agreed in the Council’s budget for 2024/25 state, both for “Communal Heating - Westfield Court - Gas fired heating and hot water” and “Communal Heating - Westfield Court - Owner occupiers' boiler maintenance”:

“Freeze charges: ongoing issues with systems providing heat and determining the appropriate charging tariff for energy use”.

Believes:

·                That the Council should not automatically pass on increases in commercial energy prices to residents without due consideration of the implications.

·                That the Council, acting as Property Factor, has a duty to be open, transparent and fair in dealings with residents, and must provide information in a clear and easily accessible way.

 Requests, in relation to Westfield Court:

1)         That the increase in the communal heating charge for 2024/25 and the bill issued to “balance off Common Charges” from 2022/23 should be reviewed urgently. The review should include, but not be limited to:

a)         A clear breakdown of all service charges issued from 2021/22 until 2024/25.

b)         Details of how the energy is procured by the Council, including, but not limited to: the name of the energy supplier, the rate charged in Kilowatt hours and the standing charge.

c)         An explanation of why the agreed Fees and Charges are not being applied in this case.

2)         A briefing note should be issued to ward councillors and members of the Housing, Homelessness and Fair Work Committee by Friday 12 July, detailing the outcome of the review.

3)         Details of the review should be communicated to affected residents following agreement of a text with Housing leads and ward councillors.

4)         A full report to the next meeting of the Housing, Homelessness and Fair Work Committee, including, but not limited to:

a)         Details of the review requested in (1).

b)         Options for Committee to agree to reduce or remove the increase in the communal heating charge for 2024/25 and the bill issued to “balance off Common Charges” from 2022/23.

c)         The outcome of the condition survey.

d)         A response to the reported frequent loss of heating and hot water and actions being taken to address this.

e)         A response to a reported decline in standards of maintenance of the building and its surrounding areas, and decline in standards of communication with residents, and actions being taken to address these.

f)          Details of any other communal heating systems factored by the Council which have resulted in substantial increases in energy costs and/or displays similar defects.

*further details of bills issued will be shared with members in advance of the meeting.”