More than 500,000 customers connected to heat networks across England, Scotland, and Wales are set to receive enhanced consumer protections from today, as new regulations bring these systems under the oversight of Ofgem. This significant move aims to align the safeguards for heat network users with those already enjoyed by customers on traditional gas and electricity connections, addressing long-standing concerns over pricing and service quality.
Enhanced Powers for Ofgem to Ensure Fairness
Under the new rules, Ofgem will be granted expanded authority to intervene directly in cases where heat network operators impose unjustified price hikes or deliver substandard service. This includes the ability to mandate compensation for customers who experience prolonged outages, ensuring that providers are held accountable for reliability issues. The Department for Energy Security and Net Zero (DESNZ) has emphasised that these measures are designed to create a more equitable energy market for all consumers.
Clearer Billing and Support for Vulnerable Users
In addition to regulatory oversight, the updated framework introduces mandatory itemised billing, which will provide customers with a transparent breakdown of their energy costs. This change is expected to help users better understand their consumption and identify any discrepancies. Furthermore, enhanced support mechanisms will be implemented specifically for vulnerable customers, offering additional assistance to those who may struggle with energy affordability or access.
Background and Government Funding Initiatives
The push for stronger regulations follows alarming reports of some heat network customers facing energy price increases of up to 450 per cent in recent years, highlighting a critical gap in consumer protections. To complement these regulatory changes, the government has announced over £47 million in funding through the Green Heat Network Fund. This investment will support the development of four new heat network projects across the UK, promoting sustainable energy solutions and expanding access to efficient heating systems.
Overall, this regulatory shift marks a pivotal step towards ensuring that heat network customers receive the same level of protection and fairness as those on conventional energy supplies, while also supporting the transition to greener heating alternatives.
