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People on heat networks can claim compensation for poor service from next year, government confirms
The government has provided more details on its plans to give more consumer protections for people on heat networks.
Responding to a consultation on consumer protections for homes and businesses connected to heat networks, the Department for Energy Security and Net Zero said that customers will have access to compensation if they lose access to heating, fairer pricing, and clearer and easier-to-understand billing.
The new regulations will mean that from next year, more than 0.5 million people will be able to get access to the same rights as those living on traditional gas and electric connections.
There will also be increased protections for vulnerable customers, such as older people and those living with health conditions, the government said.
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Heat networks take heat found underground or use excess heat generated through manufacturing or waste management, and supply heating and hot water to homes and businesses through a connected network.
This allows them to avoid fossil fuel-burning gas and oil boilers. However, some networks have suffered repeated outages, while residents can face huge bills.
Once the new rules come into effect they will be regulated by Ofgem, which will be authorised to step in when needed, where homes and businesses have problems with disproportionate pricing, poor customer service and poor reliability.
The Energy Ombudsman will support consumers with complaints they have with their heat network operator, and Citizens Advice and Consumer Scotland will be the statutory advocacy organisations providing advice and support for consumers on heat networks.
Lord Callanan, minister for energy efficiency and green finance, said: “Heat networks are expected to support millions of households in the years ahead, as families look to cleaner ways to heat their homes.
“That is why it is vital we ensure customers connected to these heating systems enjoy the same protections as other households in our energy market.
“Today’s announcement will help deliver fairer prices, compensation and more transparent bills, ensuring more families can enjoy the benefits of heat networks.”
Cathryn Scott, director of enforcement and emerging issues at Ofgem, said that the organisation is working with government to design and deliver a regulatory regime “that will be able to deliver improvements for heat network customers”.
“The framework will include consumer protections in the areas of vulnerability, billing and pricing and a route for escalating matters to the ombudsman,” she said.
Stephen Knight, director of Heat Trust, said: “As the national consumer champion for heat networks, Heat Trust has long campaigned for the regulation of the sector and we therefore welcome this important milestone.”
However, he added that the new regulations “must achieve tangible improvements in customer experiences in terms of pricing, reliability and customer service if consumers are to gain confidence in district and communal heating systems”.
In January, Inside Housing reported on the Lambeth Council tenants threatened with eviction due to being unable to pay their heat network energy bills. Bills had increased by more than 350% year on year.
In February, Will Damazer, associate director at Social Finance, called for urgent action to address issues around heat networks.
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