How we calculate the utility charges that you pay in your service charge

Understanding your utility service charges

At Muircroft, some utilities are provided through communal systems rather than through individual bills.

This means Muircroft pays the supplier directly and recovers the cost through your service charge. The utilities covered are gas (heating and / or hot water), electricity, water and wastewater.

Why do I pay service charges for utilities?

Utility services such as heating and / or hot water, communal electricity, water and wastewater are provided for the benefit of tenants. The cost of providing these services is recovered through the service charge.

We do not simply divide the latest supplier bill between residents. Instead, we calculate an estimated annual cost and share it fairly between homes using an agreed method.

How do we calculate the charges?

Every year we:

✅ Review actual utility costs and usage

✅ Estimate costs for the year ahead

✅ Include supplier standing charges

✅ Allow for seasonal changes in energy use

✅ Compare last year's estimate with actual costs

✅ Adjust for any over or under recovery

✅ Apply a modest allowance for inflation

✅ Share costs fairly between homes using an agreed method

This helps ensure service charges reflect the actual cost of providing services over time.

 

Gas - Heating and Hot Water 

Our heating and hot water boiler use gas.  This is supplied via our contract procured via NGP.

Heating is provided through communal systems at:

  • Muir House
  • Priest Croft Phase 1

At Priest Croft Phase 2, individual gas boilers provide heating within homes.

Muir House

At Muir House:

  • 75% of heating costs relate to heating inside individual homes.
  • 25% of heating costs relate to heating communal areas such as lounges and corridors.

How costs are shared

  • Private heating (75%) The cost is shared according to the size (floor area) of each flat. Larger flats therefore contribute a larger share than smaller flats.
  • Communal heating (25%) The cost is shared equally between all flats.

Priest Croft Phase 1

At Priest Croft Phase 1:

  • 63% of heating costs relate to heating inside homes.
  • 37% relates to communal areas.

How costs are shared

  • Private heating (63%) The cost is shared between Phase 1 flats according to the size (floor area) of each flat.
  • Communal heating (37%) The cost is shared equally between applicable flats.

Tenants living in Priest Croft Phase 2 have their own individual gas boilers.  This means:

  • No private heating service charge is payable through the communal heating system.
  • Tenants only contribute towards communal heating costs where applicable.

Housing Benefit and Heating Charges

The heating charge shown on your statement may be split into two parts.

Private Heating

This is heating provided within your own home.

  • Shown separately on your statement.
  • Not normally eligible for Housing Benefit.

Communal Heating

This is heating provided to communal lounges, corridors and other shared areas.

  • Shared between homes in accordance with the charging method.
  • Normally included within Housing Benefit eligible service charges, subject to individual circumstances.

Water and Wastewater Charges

Water and wastewater are supplied by Southern Water. There is no option to change supplier.

Each year we:

  1. Estimate total usage.
  2. Apply the current water and wastewater rates.
  3. Add any standing charges.
  4. Compare previous estimates with actual costs.
  5. Allow for inflation.
  6. Share the total cost equally between homes.

Electricity Charges

Communal electricity is supplied via our contract procured via NGP. This is the electricity used in the common parts of your scheme e.g. corridors, lifts, communal lounges.

Each year we:

  1. Estimate annual electricity costs.
  2. Include standing charges.
  3. Compare estimates with actual costs.
  4. Allow for inflation.
  5. Share the cost equally between homes.

How We Check Utility Bills

We regularly check supplier invoices and meter readings to make sure bills are accurate. This includes checking:

  • Meter readings
  • Energy rates charged
  • VAT charges
  • Any supplier errors or discrepancies

Where necessary, we challenge suppliers and seek corrections.

Why Do Charges Change?

Service charges are calculated in advance because future utility costs are not known at the time charges are set. Once actual costs become available, we compare them with the original estimate. Any difference is taken into account when future service charges are calculated.

This helps ensure that service charges remain fair and reflect the actual cost of providing services.

Need More Information?

If you have any questions about your utility service charges, please contact your Housing Support Officer, who will be happy to explain how your charges have been calculated.

At a Glance

  • Water & Wastewater - Shared equally between homes
  • Communal Electricity - Shared equally between homes
  • Muir House Private Heating - Shared according to floor area
  • Muir House Communal Heating - Shared equally between homes
  • Priest Croft Phase 1 Private Heating - Shared according to floor area
  • Priest Croft Phase 2 Private Heating - No communal private heating charge
  • Priest Croft Communal Heating - Shared equally between applicable homes