Campaigners to get refund after energy bill row

Daniel Holland
Local Democracy Reporting Service
NCJ Media General view of the Byker Wall in Newcastle. Trees sit in the foreground, with buildings and a large block of flats in the background.NCJ Media
The council confirmed residents living on the Byker Estate would receive a refund on their energy bills

Homeowners living on a city housing estate are each being given hundreds of pounds worth of refunds, after pleading for an end to their heating bill hikes.

Residents of Newcastle's Byker Estate complained last year about fixed monthly bills of more than £200 a month to use the estate's district heat network.

The Newcastle City Council-managed network provides unlimited heating and hot water generated from a centralised station on Walker Road, but Byker Estate homeowners have been charged a flat rate rather than only paying for how much energy they use.

Roberta Davidson, who lives on the estate, said she never thought "in a million years" the council would announce a U-turn.

It means residents will see rebates worth an average of £646.49 per household issued.

Ms Davidson, 67, of Low Ford, appealed to councillors to take action last year after seeing her monthly heating bill almost double from £108 to £213, while tenants of the development's social housing did not see the same increase.

She says she received notification of a £634 refund on Friday.

Stephen McKay/Geograph A section of the Byker Wall where it crosses Raby Way. The building is made of red bricks with white render and has green balconies. A tree stands in front of part of the building.
Stephen McKay/Geograph
Byker Estate residents have previously seen their energy bills double

"Never in a million years did I think it would happen, we thought it would never come," she added.

"I'm pleased that the council has listened and done something about it. Everybody is so happy. The main thing is that the council has listened to us and taken action."

Overall, 160 domestic and non-domestic properties are being refunded a total of £56,336.

A spokesperson for the Labour-led council said the offer was being made due to "lower-than-expected gas prices", which meant residents were charged too much in their fixed bills.

The council confirmed credit worth between £276.94 and £821.40 was being refunded to affected residents' heating accounts, in some cases paying back as much as 36% of the original bills from 2024/25.

Local Green Party councillor Nick Hartley called the refunds a "victory for collective action".

He said: "By backing residents and raising this with the powers that be, we've made a successful case to bring down unfair bills and achieve significant reimbursements for residents."

A council spokesperson said they estimated how much it would cost to provide heating and hot water to each home connected to the network each year, and provide an estimate from that.

"This is the first year the reconciliation process has been introduced as historically, due to significant emergency works that have been needed and high gas prices, the costs to operate the network have always been more than the amount received from residents."

The local authority said where applicable, the refunded credit would be used to reduce existing arrears, lower future payments, or be refunded directly upon request.

A spokesperson confirmed the council did not make a profit from the Byker District Heating Network.

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