Residents of 16 tower blocks managed by Walsall Housing Group (WHG) are expressing anger and frustration after their energy bills suddenly increased up to four times overnight. The new charges, which took effect on October 1, 2025, have left many tenants feeling “betrayed.”
The dramatic hikes stem from a heat network system installed in 2021, replacing individual boilers in flats with a centralized heating setup for each block. While intended to modernize heating services, the new system’s pricing has sparked widespread discontent.
In Woodall House, Bloxwich, energy prices have risen from 4p per kilowatt-hour (kWh) to 13.75p per kWh, while tenants in Hamilton House, also in Bloxwich, now pay 17.67p per kWh—despite similar levels of consumption between the two blocks.
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Tenants had recently been consulted about proposed pricing options, choosing to pay solely a unit rate rather than a combination of unit rate plus standing charge. However, this decision has led to average annual energy costs ballooning from around £120 to £412 in Woodall House and £530 in Hamilton House.
Local Councillor Mark Statham has criticized WHG for removing residents’ ability to switch energy providers, which would normally offer a degree of competition and price control. He highlights the puzzling disparity in rates between the two blocks despite nearly identical consumption patterns and suggests that the pricing model penalizes lower usage by increasing unit costs to recoup expenses.
Currently, Ofgem does not regulate heat network pricing, meaning no price caps protect residents from such steep increases.
Councillor Statham remarked: “Residents feel betrayed by having a heat network imposed upon them, then being subjected to inflation-busting price increases on a take-it-or-leave-it basis—especially during an acknowledged cost of living crisis with no ability to switch suppliers.”
A WHG spokesperson acknowledged the hardship the increases may cause but emphasized the necessity of aligning charges with actual costs. “For years, we deliberately kept charges below true costs by subsidizing part of the expense ourselves. Unfortunately, this is no longer sustainable. The new tariffs now reflect the full cost of the energy customers use.”
They added that cost differences between blocks are due to variations in running costs, influenced by factors such as energy efficiency and equipment age. WHG committed to ongoing reviews to ensure charges remain fair and consistent.