Half a million energy customers are a "step closer" to getting compensation and fairer bills. New rules put forward on behalf of Ofgem show legislation from 2025 could help protect heat networks as the Cost of Living crisis continues nationwide.
Under new rules, households connected to a heat network would receive greater protection such as compensation if they lose access to heating, as well as fairer pricing, and clearer and easier to understand billing. It will also improve protection for vulnerable customers including "the elderly or those living with health conditions".
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.
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"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 for enforcement and emerging issues with Ofgem, said: “We are 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.”
Heat Trust director Stephen Knight commented: “The experience of customers facing huge, uncapped, price rises during the energy crisis of the past few years has been especially difficult. Given that heat network customers cannot switch supplier, it is vital that regulations deliver tangible improvements in terms of price protection, reliability and service quality.
"There is still much work to be done to deliver regulations and if they are to take effect in 2025, then Government needs to provide further clarity on all intended rules - and the planned timescales and milestones for implementing them - as soon as possible."
