Hundreds of residents living in tower blocks across Walsall are reeling from a severe financial shock after their utility bills tripled and even quadrupled overnight, with many describing the move as a profound betrayal.
Soaring Costs and Resident Outrage
The drastic price increases, which came into effect on October 1, 2025, affect all 16 tower blocks managed by the Walsall Housing Group (WHG). The scale of the hike is stark. In Woodall House, Bloxwich, the price per kilowatt-hour (kWh) has leapt from 4p to 13.75p. For those in Hamilton House, also in Bloxwich, the situation is even worse, with prices surging from 4p to 17.67p per kWh.
This means a resident who previously paid an average of £120 per year will now face an annual bill of around £530 in Hamilton House and £412 in Woodall House.
The Heat Network System Explained
The root of the issue lies in a change made back in 2021, when WHG installed a new heat network system. This involved removing individual boilers from each flat and replacing them with a centralised system that services the entire block.
WHG stated that the new tariffs were set following an independent review of the system's true operating costs. A spokesperson explained, "For several years, we’ve deliberately kept charges much lower than the true cost by covering part of the cost ourselves. Unfortunately this is no longer sustainable."
No Escape from Rising Bills
The situation is particularly acute for residents because they are trapped with this single provider. Councillor Mark Statham, deputy leader and ward member for Bloxwich East, has strongly criticised WHG. He highlighted that the heat network has taken away residents’ ability to switch providers to find a better deal, a critical disadvantage during a severe cost of living crisis.
Councillor Statham also queried why the two Bloxwich blocks, which have "identical consumption", are charged different rates. He claims the "only reason" for the discrepancy is the level of consumption, suggesting that if people use less energy, they are charged more to make up the overall system costs.
Compounding the problem is the fact that Ofgem does not yet monitor this type of heat network system, meaning residents cannot benefit from the energy price cap that protects most UK households.
Councillor Statham said: "Residents feel betrayed by having a heat network imposed upon them, then putting them through inflation busting price increases on a ‘take it or leave it’ basis."
Consultation and WHG's Response
WHG stated that a consultation was held throughout the summer, where tenants were offered two payment options. Following this, residents voted to pay a unit rate only, without a standing charge.
Addressing the different rates between blocks, the WHG spokesperson added, "The difference between blocks is due to how much it costs to run each system... things like energy efficiency and equipment age make a difference – but we’ll continue reviewing this to make sure charges stay fair and consistent."
Despite this reassurance, for the residents facing a sudden and dramatic increase in their essential living costs, the financial pain is both immediate and deeply felt.
