Residents of seven high rises across Low Fell and Gateshead town centre will face higher energy bills.
The news comes after their supplier, Gateshead Council, approved tariff hikes.
Occupants of Barford, Stretford, Ripley, Willbery, Acomb, Bedale, Barford and Stretford Courts will see their heating bill jump from an average annual cost of £415 to £457. Residents of Regent Court will see their average heating bills hiked from £466 to £599 per annum.
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Council electricity customers in Barford and Stretford Court will see their electricity bills increase by an average of £198 annually.
A total of 620 occupants of the above high rises are signed up to the local authority's 'High Rise Energy Infrastructure for Gateshead Housing Tenants' (HEAT) for their heating. HEAT is an energy scheme owned and operated by Gateshead Council.
In Barford and Stretford Courts, 108 occupants also get their electricity from the scheme.
Coun John McElroy, cabinet member for environment and transport said: "Although the rises in tariffs do some seem high, and they are high, and it's something we regret, introducing the scheme means tenants and users of the schemes are in a better position than they would be on general tariffs."
A council report into the rises claims there are still financial benefits to the HEAT scheme. The report states: "Regent Court customers are at the Energy Price Guarantee but do not pay any standing charges. Power tariffs for Barford and Stretford include a 5% discount below the market.
"Harlow Green heat tariffs are set 10% below the Energy Price Guarantee, and customers benefit from a more controllable, efficient heating system, than previous storage heaters."
The energy hikes come as the Government's Energy Price Guarantee is forecast to increase by an estimated 20% in April. The council, though not legally compelled to adhere to the guarantee, decided to increase its energy prices in line with or slightly below the Government's cap to "limit the price increases faced by our residents".
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