Westminster City Council delays £200m heat network upgrade

Ofgem is due to become the official regulator for heat networks next year, with providers expected to offer more transparency on pricing and unplanned interruptions to heating and hot water.

Pimlico Unites, a group of residents opposed to the project, celebrated the pause, calling it a “major U-turn”.

A spokesperson for Pimlico Unites said: “Rushing into irreversible decisions affecting 3,300 homes before knowing the regulatory standards was reckless and irresponsible.

“This delay allows time for proper technical analysis and assessment of all viable options. Most importantly, it prevents the council from locking residents into systems that might not meet forthcoming standards or pricing rules designed to protect consumers.

“We’ll hold the council to meaningful engagement and proper consideration of all options. But today resident power has forced a council retreat.”

A petition penned by the group attracted signatures from 610 residents concerned about forthcoming regulatory changes and high bills for leaseholders.

The group is hoping that Westminster Council will reconsider an option to install electric combi boilers, which it claimed was overlooked.

PDHU originally used waste heat from Battersea Power Station, which it distributed through three miles of buried pipes. The network now uses three centrally located gas boilers, but residents have complained for years about frequent leaks and costly repairs.

A report from the council found that an average of 3,000 leaks and repair jobs were reported per year over the past two years. Meanwhile, between 30% to 40% of the PDHU’s energy is lost due to poor thermal efficiency.

Westminster Council has developed a shortlist of options:

• Pipework replacement, which would cost £183m and not reduce emissions
• A centralised river-source heat pump, which would cost £211m
• Install either gas boilers or electric boilers
• Mobile heat batteries

The council said it expects to return to the decision at the end of next year.

Liza Begum, cabinet member for housing services at Westminster Council, said: “This decision is about doing what is right for the local community.

“This is an essential project to address ongoing and worsening heating issues, and making the right decision is important to both the council and residents. Addressing the significant issues is also time critical.

“The PDHU is getting old, is inefficient and very costly to keep repairing. That’s why work continues at pace to ensure the community has a reliable, cost-effective, controllable, efficient-energy supply.

“By taking a prudent and pragmatic approach with the timing of any final decision, we can make sure we are meeting the needs of residents and businesses both now and in the future.”

In January, Inside Housing revealed that Westminster saw the biggest increase in heat network costs in the past four years, with charges from the borough’s energy supplier rising 608% since 2021.