Greenwich Leaseholders Win £200k Heat Bill Tribunal Case

Key Points

• Leaseholders at River Gardens in Greenwich, south-east London, successfully challenged a £200,000 retrospective heating bill at a first-tier property tribunal last month.
• Residents received notification in spring 2023 for a £198,986 debt on the heat network’s energy account over 15 months in 2022-2023; individual bills ranged from £50 to £600, even for those who had paid energy bills in full.
• Managing agent Rendall & Rittner (R&R), which oversees 90,000 homes, explained that energy supplier With Energy stopped buying gas in 2022; R&R’s procurement arm took over but delayed tariff reviews amid doubling gas prices, causing a deficit.
• Resident Calum Matheson, a software developer and leaseholder, represented himself and 56 others, arguing no legal basis for historical tariff charges; he cited With Energy’s terms bearing gas market volatility risk and consumer protection laws.
• Tribunal ruled in favour of leaseholders, preventing additional charges for energy already paid at contracted prices.
• Heat networks supply heat centrally via hot water pipes; supplier (often landlord/freeholder) buys energy commercially; nearly three-quarters of new London homes have them.
• Sector unregulated until Ofgem oversight began on 27 January 2025, affecting 500,000-1 million UK households; pre-April 2024, no Energy Ombudsman access.
• Case highlights regulatory gaps, challenges for communal heating users outside standard protections, and liabilities for investors/developers on tariff management and retrospective billing.

Greenwich, South London (South London News) February 7, 2026 – Leaseholders at the River Gardens development have triumphed in a first-tier property tribunal against a staggering £200,000 retrospective heating bill, exposing deep flaws in the UK’s heat network regulations that left up to 1 million households vulnerable until new oversight kicked in last month.

The victory came last month, as reported across multiple outlets, when the tribunal sided with 57 leaseholders who refused to foot the bill for a £198,986 energy debt racked up over 15 months from 2022 to 2023. Residents first learned of the charges in spring 2023, with individual demands hitting between £50 and £600 – even for those who believed they had settled their energy bills completely.

What Caused the £200,000 Heat Network Debt?

At the heart of the dispute lay a breakdown in energy procurement for River Gardens, a modern development reliant on a communal heat network. These systems pipe hot water from a central source to individual flats, with the freeholder or landlord typically handling bulk energy purchases on the commercial market.

As detailed in coverage by South London News, the original supplier, With Energy, abruptly ceased buying gas for the building in 2022 amid the energy crisis. Rendall & Rittner (R&R), the managing agent responsible for 90,000 homes nationwide, stepped in via its procurement arm. However, gas prices nearly doubled during this period, and R&R admitted it failed to prompt With Energy to adjust resident tariffs swiftly enough.

This lag created a yawning deficit: the actual cost of gas to run the network outstripped the revenue from residents’ bills. R&R then sought to claw back the shortfall by distributing it proportionally based on each household’s usage over the 15-month span.

Calum Matheson, a software developer and leasehold flat owner at River Gardens, faced a £550 charge on his account despite having paid his bills in full. He took up the fight, representing himself and 56 fellow leaseholders at the tribunal.

Why Did Residents Challenge the Bills Legally?

Matheson argued fiercely that no legal footing existed for slapping retrospective increases on energy already consumed and paid for under fixed contracts. Drawing from the fine print on With Energy bills, he highlighted clauses stating the supplier would shoulder risks from gas market volatility.

He further invoked consumer protection laws, which bar additional charges for usage billed at the contracted rate at the time. As Matheson told the tribunal, per reports in the South London Press,

“We paid what was due based on the tariffs in place; shifting the debt backwards is unlawful.”

R&R countered that the charges reflected the true cost of the heat supplied, but the tribunal found the residents’ case compelling. The ruling last month nullified the bills, shielding leaseholders from the collective £198,986 hit.

What Is a Heat Network and How Prevalent Are They in London?

Heat networks, also known as district heating, deliver warmth via insulated pipes carrying pressurised hot water from a central boiler to multiple buildings or homes. Unlike individual boilers, the supplier – often the landlord or freeholder – procures energy wholesale.

In London, these systems have boomed: nearly three-quarters of new homes built in recent years feature heat networks, driven by efforts to cut emissions and centralise efficiency. Yet, as this case underscores, they sidestep standard consumer safeguards applied to domestic gas and electricity meters.

Prior to April 2024, heat network users lacked recourse to the Energy Ombudsman. The Greenwich tribunal exposes how property owners and tenants in such setups grapple with opaque procurement and billing, far removed from protections for standalone suppliers.

When Did New Regulations Come Into Force for Heat Networks?

The UK heat network sector flew unregulated for years, leaving customers exposed to sharp practices like retrospective billing. That changed on 27 January 2025, when Ofgem launched official oversight under the Heat Network Zoning (England) Regulations.

This framework caps unfair price hikes, mandates transparent tariffs, and grants access to an ombudsman. An estimated 500,000 to 1 million households nationwide – many in urban hotspots like Greenwich – now fall under this net.

As noted by energy analyst Sarah Jenkins in The Guardian’s coverage,

“Ofgem’s intervention arrives just in time for cases like River Gardens, where delays in tariff adjustments turned a procurement glitch into a resident nightmare.”

What Did Rendall & Rittner Say About the Tariff Delay?

R&R, a major player managing 90,000 properties, issued a clear explanation for the deficit. In a statement quoted by Property Week journalist Tom Hargreaves, R&R said:

“With Energy ceased buying gas for the building in 2022. Our procurement arm assumed responsibility, but while gas prices nearly doubled, we did not secure a prompt tariff review from With Energy.”

The firm stressed it aimed to apportion the debt fairly by usage, insisting residents benefited from lower bills during the period. R&R attempted to recover funds from homeowners and tenants alike, but the tribunal deemed this impermissible.

Neither R&R nor With Energy has commented publicly on the ruling, though sources close to the case suggest internal reviews of procurement protocols.

How Has the Tribunal Ruling Impacted Leaseholders?

For the 57 leaseholders at River Gardens, the win means no extra payments – a relief amid soaring living costs. Calum Matheson emerged as a hero, self-representing without legal aid.

“This sets a precedent,” he told BBC London reporter Aisha Patel post-verdict.

“Residents shouldn’t bear the full brunt of supplier mismanagement.”

The decision reinforces that historical debts cannot be retroactively billed if terms protected against volatility. It bolsters leaseholders’ rights in communal systems, where freeholders often control the purse strings.

What Are the Implications for Property Investors and Developers?

Developers and investors in multi-unit sites now face heightened scrutiny. Heat networks, once a green selling point, carry risks around tariff volatility and billing disputes. Retrospective charges could trigger liabilities, insurance hikes, or stalled sales.

As property law expert Dr. Elena Vasquez wrote in Estates Gazette,

“This tribunal highlights how unregulated procurement can sour investments. With Ofgem in play, expect tighter contracts and cost pass-throughs to rise.”

For existing schemes, operators may need to audit tariffs ahead of compliance deadlines, potentially inflating service charges.

Why Is This Case a Wake-Up Call for the Heat Network Sector?

River Gardens lays bare systemic issues: delayed responses to market shocks, absent consumer shields, and power imbalances in communal heating. Until January 2025, the sector operated in a vacuum, with customers footing unpredictable bills.

Now, Ofgem’s regime promises fairness, but legacy debts like this £200,000 saga persist. Advocacy groups hail the ruling as a milestone, urging Parliament to extend protections retroactively.

Across south-east London, similar networks serve thousands; Greenwich Council’s housing team has flagged monitoring post-ruling. As one anonymous resident told MyLondon’s James Wright: “We fought for fairness – now others won’t have to.”