New payment protection for thousands of heat network customers

Thousands of heat network customers will benefit from new fair price protection plans launched today

The new protection plans will ensure that all customers are paying a fair price and getting a good service for their heating.

The measures proposed include:

• Establishing Ofgem as the heat network regulator, giving customers access to similar protections as other energy customers
• Requiring heat networks to report on price and quality of service standards, meaning consumers will get a fair price and good service
• Giving all heat network consumers greater transparency and information about their heat, ensuring they have options for redress if things go wrong
• Giving developers and investors the tools to establish new heat networks and expand existing ones
• Ensuring all heat networks become low carbon by 2050

Heat networks are a far more efficient and cost-effective way to provide heat for homes and businesses rather than the standard gas boiler but currently, only 5% of the energy used for heating buildings comes from low-carbon sources.

Secretary of State for Business and Energy Andrea Leadsom said:

Heat networks will be a crucial part of our commitment to eliminate the UK’s contribution to climate change by 2050. I’m delighted we’re funding more heat networks all over the country and ensuring better consumer protections for those who use them.”

The Committee on Climate Change estimates that around 18% of UK heat will need to come from heat networks by 2050 if the UK is to meet its net-zero targets.

Ms Leadsom also announced £40 million of investment in 7 heat networks in Leeds, Bristol, Liverpool and London with the intention to supply more than 30,000 homes with clean heating.