Heat Trust, the heat networks consumer champion, has warned that Ofgem’s latest proposals for ‘fair pricing’ protections risk failing the 500,000 British households reliant on communal and district heating. 

Responding to Ofgem’s consultation, Heat Trust said that current plans don't go far enough to tackle the unregulated energy costs facing heat networks and leave heat network consumers without the same level of protection enjoyed by gas and electricity customers.

Stephen Knight, Heat Trust's Chief Executive, said:

“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 to Ofgem's consultation on 'fair pricing' protections for heat networks raises several concerns, including: 

• A lack of firm proposals to tackle volatile and excessive commercial energy costs faced by heat suppliers, which are often passed directly onto consumers.

• The need for cost allocation rules from the outset to prevent operators from passing inappropriate charges to consumers, including maintenance costs that landlords should cover.

• High standing charges and heat prices that are often opaque, unpredictable, and in some cases unaffordable.

• A missed opportunity to implement full transparency through a public register of heat network prices – a measure strongly supported by consumer groups but opposed by some suppliers.

Heat Trust also called for a greater voice for consumers in the regulatory design process, to provide a counterweight to the multitude of suppliers being engaged in consultations.

“We’ve heard from residents on heat networks paying up to 77p per kWh for heat – ten times the cost of heating a home with a gas boiler,” added Knight.

“We urge government to go further than these proposals, engage more closely with consumers and their representatives and deliver the strong, enforceable protections that heat network users urgently need.”

Heat Trust continues to operate Britain’s only independent consumer-protection scheme for heat networks. As a step towards compliance with forthcoming statutory regulation, due to be phased in from January 2026, it's calling on more heat suppliers to register with its Scheme - a call endorsed by government and Ofgem.

Heat Trust’s full response to Ofgem's pricing consultation can be found here.

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