Nottingham Post

Yearly bill up £86 for average city Enviroener­gy customer

CITY COUNCIL TO INCREASE PRICE OF ITS TARIFFS AFTER SEEING ITS COSTS GO UP

- By JOSEPH LOCKER Local Democracy Reporting Service

THE average Enviroener­gy customer in Nottingham will see their yearly energy bill rise by £86 after the city council decided to increase the price of its tariffs.

Enviroener­gy was recently brought back under the full control of the Labour-run authority. The network provides heat and hot water to more than 5,000 homes and 120 commercial businesses across the city.

The price rise comes at a time when the vast network of pipes, and its associated systems, needs significan­t investment. The costs of this is estimated to be in the region of £17.5m.

Council documents say Enviroener­gy has seen increased costs from the wholesale markets for utility supplies, the cost of materials and increased maintenanc­e costs, and therefore the cost of each tariff must go up to match.

During a meeting of the executive on Tuesday, during which the recommenda­tions were approved, Councillor David Mellen, leader of the council, who represents the Dales ward for Labour, said: “The increases proposed in this paper will represent a very reasonable and affordable energy cost.”

For those on the most common domestic heat tariffs, an extra threeand-a-half pence per day will be applied to the standing charge and one-and-three-quarter pence per kwh on the unit rate.

This represents an overall increase of 22 percent for the average Enviroener­gy customer, with an additional weekly cost of £1.73 per week, matching the equivalent Energy Price Guarantee “allin” price offered by Government to national domestic gas users.

For domestic electricit­y tariffs, of which there are 109 customers who occupy apartments at the Atrium building on Waterfront Plaza, there will be an increase to the standing charge by 14p per day and the unit rate by 12p per kwh. This is a 75 percent increase, at an additional average weekly cost of £4.70.

Commercial heat and commercial electricit­y tariffs will also rise in line with inflation, according to the council.

Enviroener­gy’s output includes heat which comes from burning waste collected by the council from city homes, preventing it from going to landfill and allowing the authority to generate its own form of heat for the network.

Wayne Bexton, director of environmen­t and sustainabi­lity for the council, added: “There are four categories of increase. We have obviously had to take into considerat­ion the Government’s price cap informatio­n. We have quickly turned that round from August through to these last few weeks to analyse that and make sure those increases are in line and doesn’t push us over either that boundary or the potential restrictio­n on renewable generators, which we are classed as and are also coming in through the latest budget.

“Domestic heat tariff increases of 22 percent, which equates to an average household of around £86 per year.

“Across the board we are looking at those increases to manage our costs obviously for delivering that heat and power, but also to mitigate against some of those inflationa­ry increases.

“It is still below what residents would be paying for gas.”

Councillor Andrew Rule, leader of the council’s Conservati­ve group, said: “How much forward warning has been given to residentia­l customers that this is happening so that they can take it into account?”

Mr Bexton said a newsletter had been sent to customers and a 30-day notice would also be served before the proposals are implemente­d on January 1.

A six-month review will take place to review fuel voucher requests from customers on the district heating network to see if there was an increase of fuel voucher requests after the price rise was implemente­d.

 ?? ?? Enviroener­gy, London Road, Nottingham
Enviroener­gy, London Road, Nottingham

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