Source · Select Committees · Business and Trade Committee
Recommendation 5
5
Acknowledged
Paragraph: 45
We congratulate the Department on its work on heat networks, including the consultation on heat...
Recommendation
We congratulate the Department on its work on heat networks, including the consultation on heat network zoning. We support the rollout of heat networks across the country, the retrofitting of high-density housing, and the installation of heat networks in new build developments. However, we recognise the real concerns of consumers who are often given no choice but to receive their energy supply from one designated supplier. Whilst the introduction of the Heat Network (Metering and Billing) Regulations has helped, we call on Ministers to urgently give Ofgem the mandate and resources to expand and enforce consumer protections in the heat network market, recognising the often monopoly status of some providers in certain areas of the country.
Government response summary AI-generated
The Government acknowledges concerns around heat networks and mentions its support for the market, data publication and forthcoming regulatory framework, but does not specifically commit to giving Ofgem the mandate and resources to expand and enforce consumer protections.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
45
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
this Parliament and will do so at the earliest possible opportunity. In December, we published the Government response to the Heat Networks Market Framework consultation which sets out our proposals for regulation. We announced that we will appoint Ofgem as the heat networks regulator for Great Britain. In this role, heat network consumers receive a fair price, reliable supply of heat and transparency of information. Under the regulatory framework, the BEIS Secretary of State will be given powers to introduce a price cap to the market in the future to protect consumers. Regulation will also give Ofgem powers to investigate and intervene on networks where prices for consumers appear to be disproportionate compared with systems with similar characteristics, or if prices are significantly higher than those consumers would expect to pay if they were served by an alternative and comparable heating system. Finally, Ofgem will be given powers to set rules requiring heat networks to publicly disclose sufficient information for the consumer to understand how much they are paying, including but not limited to, their fixed charges, tariffs, and unit rates, and provide clear explanations about how prices are set and how heat network consumers are billed.
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