Energy Bills Frozen for Byker Wall Estate Residents
Residents of the Byker Wall Estate have been informed that their energy bills will be frozen for the year 2026-27.
Previously, homeowners on the estate experienced energy bills exceeding £200 per month due to their use of a district heat network (DHN), which applies a fixed fee rather than charging based on actual energy consumption.
Following a campaign aimed at reducing these costs, Newcastle City Council issued refunds totaling over £56,000 last year, averaging £646.49 per household.
The council, which owns the DHN, announced that 167 private homeowners will have their bills frozen in 2026-27 to provide them with "stability and certainty."
Energy bills for DHN users consist of two components: an energy charge for heating the estate and an infrastructure charge for maintaining the network.
"While infrastructure costs can vary year to year due to inflation and planned maintenance, the energy charge makes up the largest proportion of residents' bills and is most affected by national energy prices, particularly gas," a council spokesperson said.
"To provide stability and certainty for residents during ongoing cost‑of‑living pressures, energy bills have therefore been frozen for this year."
Heat Network Changes
The fixed charge applies only to homeowners on the estate and not to tenants renting from the social housing provider Karbon Homes.
One year ago, the council introduced a revised fee structure for the DHN for Byker Wall homeowners, resulting in heating bills decreasing by up to 31%.
This year, the prices will remain at an annual £366.32 infrastructure charge and an energy charge of £18.92 per year per square metre, according to the Local Democracy Reporting Service.
Although Ofgem now regulates heat networks, these networks are not subject to the energy price cap.
Newcastle City Council stated that it does not generate profit from the heat network.
However, the council is currently conducting a review of all its heat networks in response to new Ofgem requirements, which include implementing consumption-based billing wherever feasible and ensuring "clear, itemised, transparent billing."
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