Regulation of heat networks could fail consumers, cautions Heat Trust

Heat Trust
Stephen Knight, director of Heat Trust

Heat Trust has warned the government and Ofgem that the 900,000 heat network consumers in Great Britain will judge regulation to have failed if it does not deliver cheaper, fairer and more reliable heating systems that are fit for the future.

Responding to a joint consultation by Ofgem and the Department for Energy Security and Net Zero on their planned statutory protections, Heat Trust outlined the areas in which it intends to hold regulation to account on behalf of consumers.

A statement said that these areas include ensuring consumers do not pay an “unaffordable price premium” for being on a heat network, requiring transparency, monitoring and regulation of the root causes of high heat bills.

Ensuring heat suppliers are held to account for standards of fair, transparent and good-value customer service is also an area flagged by Heat Trust. This required informed, timely and targeted enforcement action where these aren’t met, as well as providing consumers with independent dispute resolution to the Energy Ombudsman when things go wrong, it said.

Stephen Knight, director of Heat Trust, said: “Since our launch in 2015, Heat Trust has consistently called for government intervention in ensuring that heat network consumers have equivalent rights and protections to traditional gas and electricity consumers.

“We have continuously advocated for statutory regulation of heat networks and believe this can’t come quickly enough.

“Consumers must be able to have confidence in heat networks, if these networks are to help decarbonise heat through the government’s target of serving 20% of homes by 2050.

“Many heat network consumers get a reliable and value-for-money heating system. But sadly too many suffer high prices, unreliable systems and poor customer service.

“The experience of consumers facing huge, uncapped, price rises during the energy crisis has been especially difficult. Because heat network consumers cannot switch supplier, it’s vital that regulation delivers tangible improvements in terms of price protection, reliability and service quality.

“Our voluntary consumer protection scheme continues to lead the way in heat networks best practice and we’re delighted that the proposed statutory protections recognise this by building on our own standards of customer service.

“As a voluntary scheme, we cannot regulate price or technical standards and so it’s crucial that regulation addresses the root causes of consumer detriment in these areas.

“As experts in heat network consumer protection, Heat Trust is committed to continuing its work with government and Ofgem to establish a more trusted and regulated sector – ensuring that heat network consumers are protected at every stage.”

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