Decision details

To consider a report of the Director of Finance and Commercialisation seeking a decision by the Director of Adults, Housing and Communities on the percentage rate by which landlord-controlled heating charges will change from 1 October 2018.

(i)  To agree that charges to tenants for landlord controlled heating will not change as a result of this annual review;

(ii)  To agree that, for the residents of International Way, Erskine Court, Sturminster House and Shirley Towers, the unit charge will also remain unchanged. 

The financial outturn for 2017/18 shows that the surplus on the heating account has increased from £803,000 to £1,236,000 during the financial year. The surplus at 31^st March 2018 is £605,000 higher than forecast in August 2016 due to lower usage than predicted. However, it is possible that there are a number of estimated bills included in this usage that do not accurately reflect the cold weather between January and March.

The surplus has enabled the re-payment of the loan of £391,000 made by the HRA to the heating account in 2013/14

The surplus generated by International Way continues to reduce, and the new heat energy systems at Erskine Court, Sturminster House and Shirley Towers are being monitored closely to ensure full recovery of costs.

Alternative options are to increase charges in line with energy inflation, or to reduce charges by using the existing surplus. The former option will further increase the surplus on the account, which is contrary to policy, whereas the latter option, while reducing the surplus, will lead to increases being required in later years that would be greater than fuel inflation.