Tenants in two Walsall tower blocks are facing devastating energy bill increases that have seen their costs quadruple overnight, prompting outrage from local councillors and accusations of residents being given an impossible choice.
'Shot or hanged' consultation
Deputy council leader Mark Statham launched a scathing attack on Walsall Housing Group (WHG) during a recent council meeting, describing a consultation process that left residents with no good options. "There was a consultation," Councillor Statham stated, "residents were given two options, one was to be hanged and one was to be shot. They didn't like either of them but they were told they had to vote for one."
The controversial consultation took place throughout the summer of 2025 and concerned new charges for hot water following the installation of a new heating system in 2021. The heat network replaced individual boilers in each flat with a centralised system serving both Woodall House and Hamilton House in Bloxwich.
Staggering price increases
The new charges implemented on October 1, 2025, have proven catastrophic for household budgets. Tenants in Woodall House saw their energy prices jump from 4p/kWh to 13.75p/kWh, while those in Hamilton House faced an even steeper increase to 17.67p/kWh.
Councillor Statham highlighted the dramatic impact on residents' finances, noting that what previously cost £120 annually now amounts to £530. He questioned the justification for such dramatic increases, pointing out that commercial gas costs approximately 5.5p/kWh on the open market.
"The input fuel commodity price should be between 80 or 90 per cent of the system running cost," Statham argued. "But here we've got a system commodity price input which is less than 30 per cent of the unit price charge."
No escape from monopoly pricing
Residents find themselves trapped with no alternative suppliers, creating what the councillor described as a "take it or leave it" situation. The energy ombudsman has no legal oversight of the heat network system, meaning WHG can effectively charge whatever they want according to Statham.
The councillor also raised concerns about the discrepancy between the two identical blocks, questioning why Hamilton House residents face significantly higher costs than their neighbours in Woodall House for the same system.
WHG defended their position, explaining that the previous 4p/kWh rate was "incredibly low" and had been subsidised by rent payments for several years. A spokesperson stated: "The charge that is set at the moment for those tenants is solely to recover the costs of the energy used to heat those homes. There are no additional costs for capital recovery or the administration of WHG."
The housing association acknowledged they now operate as a monopoly energy supplier due to regulatory changes affecting all housing associations with heat networks. They've committed to continuing support for tenants, including helping them access benefits and budgeting services, while sharing detailed cost breakdowns with Councillor Statham.
