Over 500,000 heat network customers come under Ofgem protection this week

From January 27, Ofgem will regulate heat networks covering more than 500,000 customers in England, Scotland and Wales, and the government announced over £47 million to support four heat network projects.

More than 500,000 homes and businesses served by heat networks will come under Ofgem regulation from January 27. Heat networks supply multiple buildings from a central source, for example excess heat from a data centre or heat taken from the River Thames. The industry was previously outside Ofgem's remit in England, Scotland and Wales. The change is intended to align protections for heat network customers with those using gas and electricity. Key details: - Ofgem’s oversight begins on 27 January and will apply to heat network customers in England, Scotland and Wales. - The regulator will have powers to act on unfair price rises and poor service, and customers may be eligible for compensation for outages. - Customers are set to receive clearer, itemised bills and increased support for vulnerable households, according to the Department for Energy Security and Net Zero. - Some heat network users have faced price rises reported as high as 450% after increases in gas prices. - The government announced more than £47 million from the Green Heat Network Fund for four projects in Waterloo, Hounslow, Sunderland and Media City in Salford, including schemes using river and wastewater heat sources. Summary: The new rules place heat network consumers under Ofgem oversight and introduce standards on billing, complaints and support for vulnerable customers. Stakeholders including Citizens Advice and the End Fuel Poverty Coalition welcomed the move but said regulation alone will not resolve all problems. How robustly the new powers will be used and the practical effects for households are undetermined at this time.