CIH welcomes the commencement of heat network regulation

April 1 marks the beginning of Ofgem’s role as regulator for the heat network sector, with the start of the Consumer Advocacy and Consumer Redress parts of the regulatory framework.

Responding to the news, Matthew Scott, senior policy officer at CIH, said:

“Warm, safe homes are the cornerstone of our health and wellbeing, both now and in the future. Clean, affordable, and efficient heat networks will play a vital role in this future, and we expect around one fifth of all heating and hot water services to be provided by them in 2050.

“However, until now, they have never been subject to regulation in the same way as the rest of the energy retail market. This has left people at risk of disproportionate pricing and meant they have limited opportunities for redress when things go wrong.

“The commencement of heat network regulation is therefore a landmark moment that CIH welcomes. Approximately one in 12 social housing residents receive their heating and hot water from a heat network, and it is consequently important that housing providers with heat networks familiarise themselves with the draft proposals and the different dates they will become active.

“We will continue to work with government and Ofgem, as well as our members and partner organisations across the housing sector, to ensure the regulatory regime is implemented fairly and effectively.”

Housing providers with heat networks should register with the Energy Ombudsman as soon as possible if they have not done so already, which is required due to the Consumer Redress aspect of the regulation beginning on April 1:

See more

• Ofgem’s page on heat network consumer protections: https://www.ofgem.gov.uk/energy-policy-and-regulation/policy-and-regulatory-programmes/heat-networks
• DESNZ and Ofgem’s proposals on implementing heat network consumer protection: https://www.gov.uk/government/consultations/heat-networks-regulation-implementing-consumer-protections