The government has introduced new plans to provide fairer energy prices for hundreds of thousands of customers using heat networks.
Under these proposals, homes and businesses connected to heat networks will have similar consumer protections as those on traditional gas and electricity contracts. This includes the potential for a future price cap on energy bills, consistent standards for heat service and supply, and clear billing.
From 2025, Ofgem will intervene in cases of disproportionate pricing, poor customer service, and reliability issues, with the ability to enforce fines and compensation for supply outages. Furthermore, heat network operators will be required to maintain a register of vulnerable customers. Minister for Energy Efficiency and Green Finance, Lord Callanan, emphasised the government’s investment in heat networks to reduce emissions, provide low-cost heating, and enhance energy security.
These systems utilise renewable and recycled heat sources, reducing carbon emissions and offering affordable energy to thousands of people. The aim is for heat networks to supply 20% of the country’s heating by 2050, with input from consumer groups and industry to shape the regulatory framework for consumer protection. Enhanced standards and developer rights in the heat network sector will fuel investment. As a result, the government has dedicated £22 million in funding to establish the UK’s inaugural heat network system.
Further information can be found on the Government website here:
https://www.gov.uk/government/news/hundreds-of-thousands-of-heat-network-customers-to-benefit-from-fairer-energy-prices
