HALF a million households who are supplied by heat networks could see their bills double if the conflict in the Middle East drives up energy prices.
Heat networks provide heating, cooling and hot water to more than one property in a building or to more than one building from a central source.
They are often used to supply families who live in blocks of flats or multiple buildings.
But homes that are supplied in this way are not protected when energy prices spike as they are not covered by industry regulator Ofgem’s energy price cap.
The cap restricts the maximum amount that suppliers can charge for every unit of gas and electricity to use.
Households who are supplied by heating networks are also unable to change suppliers when prices spike.
Read more on energy bills
Meanwhile, the costs households pay vary significantly as some heat networks are signed up to commercial gas contracts, which are more expensive.
Gas and oil prices have soared since the conflict in the Middle East began, which has restricted transportation through the Strait of Hormuz, one of the world’s busiest shipping lanes.
Strikes on key gas fields have also severely restricted supply.
But while most households are protected from immediate bill rises due to the increase in the price of oil and gas, those who are part of heat networks are not.
Heat networks buy their energy from brokers in yearly instalments and their contracts can be renewed at any point in the year.
Households who are supplied by heat networks usually pay between 10-15p for kWh of mains gas but during the last energy crisis some households saw their bills exceed 50p per kWh, according to Heat Trust.
The London Assembly Environment Committee is calling on the Government to urgently introduce price protections for heat network customers.
Many heat network customers saw their bills soar during the last energy price spike in 2021-22, when they were left exposed.
Leonie Cooper, chair of the London Assembly Environment Committee, said: “The ongoing conflict in the Middle East risks rising costs for gas and oil.
“Even prior to recent price rises, gas prices for customers in the United Kingdom were expected to be 50 per cent higher in March 2026 than in the winter of 2021-22.
“It is only fair that Londoners on heat networks are given the equivalent support with their heating bills that other domestic gas and electricity consumers receive.”
This could be done by providing support that is equal to the Ofgem price cap, which will fall to £1,641 a year from April.
Heat networks only started to be regulated in January, when a spike in gas prices caused some households’ bills to rise by up to 450%.
Under the plans the industry will come under new rules that will bring heat network customers in England, Scotland and Wales closer in line with people with traditional gas and electricity connections.
Ofgem will be able to act if a heat network operator puts up prices unfairly.
Meanwhile, customers will get compensation from the Energy Ombudsman if they suffer an outage.
But the regulation is in the early stages, leaving customers more vulnerable.
Ofgem has written to heat network providers to remind them to treat their customers fairly during the ongoing situation.
A spokesperson said: “We know people are worried about the impact of the conflict on bills.
“We are working with the heat network industry to understand how heat network consumers may be affected.”
Any heat network customers who are worried about their bills should contact their supplier early.
The supplier must offer support including payment plans or help if you are struggling.
