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New Rules Shield 500,000 from Heat Price Hikes
27 Jan
Summary
- Over 500,000 customers are now protected by Ofgem.
- New regulations bring heat networks in line with gas/electricity.
- Compensation is available for heat network outages.
Starting January 27, 2026, more than 500,000 customers on heat networks across England, Scotland, and Wales will benefit from Ofgem regulation. This ensures they receive protections similar to those on conventional gas and electricity supplies. The new framework empowers Ofgem to intervene if heat network operators impose unfair price increases or deliver substandard service.
Customers will now experience improved billing transparency, itemized statements, and enhanced support for vulnerable households. Financial compensation will be available for customers experiencing service outages. This regulation addresses concerns about significant price hikes, with some customers having faced increases of up to 450% following gas price surges.
This development is supported by over £47 million in funding for Green Heat Network projects, including developments in London and Salford, which aim to utilize sustainable heat sources like river water and wastewater. Experts emphasize that robust application of these new powers is crucial for ensuring affordable and reliable heat, particularly for low-income households.
