More than 500,000 heat network customers will receive greater consumer protections across England, Scotland and Wales.
Ofgem will now have powers to act if a heat network operator puts up prices unfairly, and if an operator delivers a poor level of service, with compensation awarded to customers who suffer a service outage through the Energy Ombudsman.
Homes and businesses on heat networks will receive clearer, itemised billing – with previous cases of customers being issued with an unexplained monthly charge – and there will be greater support for vulnerable customers.
Some heat network customers saw energy prices rises of up to 450% during the energy bills crisis.
A spokesperson for the End Fuel Poverty Coalition, commented:
“Bringing heat networks under Ofgem regulation is an important and long-overdue step. These networks should be able to deliver low cost energy for some of the poorest households in the country, but for years, heat network customers have effectively been second-class energy consumers, facing huge price hikes, poor service and little meaningful protection.
“Today’s change should finally give heat network customers basic rights around fair pricing, clear billing and redress when things go wrong. But regulation alone won’t fix everything. Ofgem and Ministers must now make sure these powers are used robustly, vulnerable households are properly protected, and that heat networks genuinely deliver what they promise: affordable, reliable heat that helps tackle fuel poverty, not deepen it.”