Greater consumer protections introduced for heat network customers across Great Britain for the first time, supporting half a million consumers.
- New protections for homes and businesses on heat networks in England, Scotland, and Wales introduced for first time
- Ofgem appointed regulator and will be able to act on unfair price hikes and poor service
- Clearer, itemised billing and greater support for vulnerable customers
- More than £47 million for four new heat networks across the country
More than 500,000 heat network customers will be shielded from unfair energy price spikes as greater consumer protections are introduced for the first time across Great Britain.
The previously unregulated industry will come under new rules to finally bring heat network customers across England, Scotland and Wales closer in line with people living on traditional gas and electricity connections, with Ofgem installed as regulator.
Ofgem will have powers to act if a heat network operator puts up prices unfairly, and if an operator delivers a poor level of service, with compensation awarded to customers who suffer a service outage through the Energy Ombudsman.
Homes and businesses on heat networks will receive clearer, itemised billing - with previous cases of customers being issued with an unexplained monthly charge - and there will be greater support for vulnerable customers.
Some heat network customers have seen energy prices rises of up to 450% following the increase in gas prices.
Other protections to be introduced include:
- Suppliers required to meet standards of conduct on how they treat consumers, covering customer service, engagement and being transparent and clear when sharing information.
- Consumers will in future be provided with a heat supply agreement, similar to a contract, providing clear terms and conditions and advance notification of any changes to these.
- Vulnerable customers (elderly or those living with health conditions) added to a priority services register so if something goes wrong, they are top of the list to be reconnected.
- Vulnerable customers will also have new protections shielding them from the forced installation of pre-payment meters.
- More transparency about how a customer's heat network operates and who to contact if they have a complaint or maintenance issue
Minister for Energy Consumers Martin McCluskey said:
For too long customers on heat networks have been unprotected, being hit with unfair price rises and having to manage with hugely inconvenient service outages.
It's simply not good enough - and that is why from today, we're giving Ofgem new powers to act and hold heat network suppliers operating a poor-quality service to account.
Support is already available through the Energy Ombudsman, and I would encourage anyone with an ongoing issue with their heat network to
