Heat Trust has warned that Ofgem's recent proposals may not adequately protect the 500,000 households that rely on communal and district heating in the UK. The current plans fail to address unregulated energy costs that heat network consumers face, leaving them vulnerable compared to gas and electricity customers. Significant issues include excessive commercial energy costs, unclear maintenance cost allocation, high standing charges, and a lack of transparency in pricing. Heat Trust emphasizes the need for urgent government action to enhance consumer protection and confidence in heat networks, vital for a low carbon future.
Forthcoming regulation of heat networks is great news for consumers, but Ofgem's proposals around price regulation do not yet deliver the level of fairness or price protection that heat network customers deserve. Many households are still paying twice as much for heat as those using gas boilers - and that simply isn't sustainable.
We need urgent action from government to rein in unregulated costs and reduce unacceptable levels of heat loss from poorly performing systems.
Unless these issues are addressed, we risk undermining public confidence in heat networks at a time when they need to be a key part of our low carbon future.
Heat Trust's response raises several key concerns, including a lack of firm proposals to tackle volatile and excessive commercial energy costs faced by heat suppliers.
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