Decision details

(i)  That charges to tenants for landlord controlled heating are increased by 19.5% from 5 September 2011.

(ii)  To note that further increases in charges to tenants on top of increases due to rises in energy prices will be needed over the next 4 years

(iii)  To note that if the measures to reduce electricity consumption do not deliver the anticipated savings it will be necessary make further increases to ensure that the deficit on the heating account does not increase beyond the limits set in this report.

(iv)  To note that if the measures to reduce electricity consumption do not deliver the anticipated savings it will be necessary make further increases to ensure that the deficit on the heating account does not increase beyond the limits set in this report.

1. The financial outturn for 2010/11 shows that the deficit on the heating account has increased to £1,620,000, which is £883,000 higher than expected
2. It is necessary to address the level of deficit and have a plan to restore balances to agreed levels.  Given the scale of the deficit a phased approach over the next 5 years is proposed.  This involves steps to reduce electricity consumption as well as increases in charges to tenants.

The alternative options involve not taking steps to reduce electricity consumption and / or recovering the deficit over a shorter period. Both would lead to higher increases in charges to tenants.  These options have been rejected as it is considered that the increases would be excessive in the current economic climate.