More than half a million customers could get access to compensation and fairer energy bills under new regulations to improve their consumer rights, according to the Department for Energy Security and Net Zero (DESNZ).
Ministers have taken the latest step to introduce much needed regulation to the heat network market, publishing the government’s response to a consultation on consumer protections for homes and businesses connected to heat networks this week.
Heat networks are a way of heating multiple buildings from a central source. They can save costs and use green energy, a statement said. Customers on heat networks registered with the Heat Trust can currently receive support when taking up issues with suppliers, it cited.
Under new regulations to be introduced from next year, DESNZ said that families and businesses connected to a heat network would receive greater protection such as compensation if they lose access to heating, fairer pricing, and clearer and easier to understand billing. This will give customers similar consumer rights to those living on traditional gas and electricity connections, it added. Increased protections for vulnerable customers, such as the elderly or those living with health conditions, will also be introduced.
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.”
More than 500,000 households and businesses are connected to heat networks across Great Britain, the statement said.
The proposals received strong support from industry bodies, consumer groups, and heat network customers that responded to the consultation in August 2023, it was noted.
Once the new rules come into effect they will be regulated by Ofgem, who will be authorised to step in when needed, where homes and businesses have problems with disproportionate pricing, poor customer service and poor reliability.