A range of new protections for households and businesses that get their heating and hot water through a heat network has come into force.
From today, Ofgem will become the regulator for heat networks across Great Britain with new rules on billing, fair pricing, complaint handling and supporting consumers in vulnerable circumstances.
New operating standards will also been introduced to improve efficiency and deliver a better experience for customers.
As part of regulation, heat network customers already have access to dedicated advice and support through Advice Direct Scotland and the Extra Help Unit at Citizens Advice Scotland, funded through Consumer Scotland.
UK Government Minster 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.”
Consumer Scotland Chief Executive Sam Ghibaldan said:
“This is a significant milestone which will deliver improvements for consumers, but we recognise regulation is designed to be transformational over time, and that this is just the start of the journey.
“As the statutory advocate for consumers on heat networks in Scotland we will seek improvements by identifying and escalating issues of concern with government, industry and the regulator.”
Chief Executive of Advice Direct Scotland Andrew Bartlett said:
"As Scotland’s national consumer advice charity for heat networks, our priority is to ensure Scots customers are treated with transparency and respect.
“This is a landmark moment which promises to protect consumers with fair pricing, better complaint handling and improved all round experience. Reach out to us for support if you are having issues with a heat network – we are always here to help.”
Head of the Extra Help Unit at Citizens Advice Scotland Natasha Gilmour said:
“The introduction of Ofgem’s regulation of heat networks is simply essential. We’ve seen numerous examples of people who use heat networks experiencing real detriment, caused by the lack of consumer protection in the heat network sector until now.
"We look forward to working closely with stakeholders as the regulatory landscape evolves, whilst achieving the best possible outcomes on behalf of people in vulnerable circumstances.”
Heat networks supply heat from a central source to homes and businesses. They can serve large areas, like towns or cities, or smaller developments such as blocks of flats or housing estates.
Around 30,000 homes and businesses in Scotland currently rely on heat networks for heating and hot water, a figure expected to grow significantly as part of national efforts to decarbonise heat and reduce energy bills.
Background
UK Government announcement on heat network regulation
Consumer Scotland – the statutory advocate for heat network consumers in Scotland – set out the challenges facing heat network customers in an evidence review published last week.
Consumers who need advice and information can contact Advice Direct Scotland via energyadvice.scot or by calling 0808 196 8660.
People in vulnerable circumstances can then be referred to the Extra Help Unit at Citizens Advice Scotland.
Unresolved disputes can be reviewed by Energy Ombudsman’s free and impartial dispute resolution service.