OVER 500,000 households will be shielded from unfair energy bill price hikes after Brits were hit with price increases of up to 450%.
Ofgem is introducing heat network regulation for the first time after customers experienced a significant hike in prices.
As of tomorrow, Tuesday, January 27, the regulations will come into force.
The previously unregulated industry involves firms heating multiple buildings from a central heating source, such as taking excess heat generated from a data centre or factory to connected properties through pipes.
New rules will bring heat network customers in England, Scotland and Wales more closely in line with those living on traditional gas and electricity connections.
Ofgem will have powers to act if a heat network operator puts up prices unfairly or delivers poor service, with compensation available to customers who suffer an outage.
Homes and businesses on heat networks will also see clearer, itemised billing and there will be greater support for vulnerable customers, the Department for Energy Security and Net Zero (DESNZ) said.
Some heat network customers have seen energy price rises of up to 450% following the increase in gas prices.
Minister for energy consumers Martin McCluskey said: “For too long customers on heat networks have been unprotected, being hit with unfair price rises and having to manage with hugely inconvenient service outages.
“It’s simply not good enough – and that is why from today, we’re giving Ofgem new powers to act and hold heat network suppliers operating a poor-quality service to account.
“Support is already available through the Energy Ombudsman, and I would encourage anyone with an ongoing issue with their heat network to get in touch with them and take advantage of these new consumer rights.”
The Government also announced more than £47million of funding through the Green Heat Network Fund to support the development of four heat network projects in Waterloo and Hounslow in London, Sunderland, and Media City in Salford.
The project in Waterloo will take heat from the River Thames to supply connected buildings, while the Media City project will take heat from wastewater source heat pumps.
Helena Charlton, director of heat networks at Ofgem, said the change means customers will begin to benefit from stronger protections on billing, complaints and support for those in vulnerable situations.
“Heat networks can deliver efficient, cost-effective heating – but there are instances where this is not the case. This framework will set important standards for consumers to rely on, backed up by our oversight.”
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: “Bringing heat networks under Ofgem regulation is an important and long-overdue step.
What energy bill help is available?
THERE’S a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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