Homes for Islington (HFI) has been presenting bills to the borough’s 11,300 leaseholders for electrical refurbishment work which the housing authority knows they are not liable to pay.
Under the Electricity Act, the UK’s seven power distribution companies are all liable for the maintenance and refurbishment of all electrical kit through to the householders’ consumer unit.
This includes all the “laterals”, “risers” and “Ryedale” distribution boards.
But the giant French-owned group EDF, formed out of the takeover of Sweb, Seeboard and London Energy, has refused to accept liability for this work.
In contrast to the six other “distos” in the UK which have complied with the Act, it is insisting that local authorities and landlords, including the London Borough of Islington (LBI), should pay.
LBI has forecast spending almost £40m on electrical refurbishment work across its housing estate numbering 35,000 properties.
The consumers’ watchdog for the power sector, Energywatch, has written to EDF asking that it complies with the electricity legislation. But the power group is insisting that it is within its rights.
It also has told Energywatch that it is unable to respond to the matter at the present time because the matter is sub judice, meaning it the subject of legal action. Two |London local authorities, one of which is Westminster, have commenced legal proceedings against EDF.
LBI was billing the borough’s 11,300 leaseholders for electrical refurbishment work even though it was aware of the challenge being mounted to the charge.
The authority’s head of electrical engineering, Mr Dennis Paddyfoot, was one of the first individuals to question EDF’s position. He forwarded a report to Mr Eamonn McGoldrick, chief executive of HFI, last year.
HFI has been including charges for electrical refurbishment work on its Section 20 notices of intended major works. The Islington Leaseholders Action Group (Ilag) has insisted that no bill is presented to leaseholders pending a clarification of responsibility for electrical work.
Mr Nigel Freeman, who heads up Homes Ownership Services at HFI, complied after maintaining that there was a legal precedent which supported the charge.
London Councils, the organisation which represents London’s 33 local authorities, has taken up the issue.
Contact: mikepaulread@tiscali.co.uk / leaseholders.org.uk
Written by Alfred Ramsay
