What is a heat network?

Campaigners such as Heat Trust, Citizens Advice, Fuel Poverty Action and Which? have highlighted concerns about how heat networks operate and the negative impacts on consumers. Heat network users aren't currently protected by Ofgem, like gas and electricity consumers, so users often experience high prices, inaccurate bills, mis-selling and poor customer service.

Heat Trust told us that due to a lack of regulatory standards and industry expertise, some heat networks built in the UK have been poorly designed, installed and/or operated and suffer from very high heat losses and poor reliability issues. These issues can translate into high heat prices, overheating corridors and/or frequent supply outages.

Most heat network customers have no right to redress for customer service failings and there's little information available to assess the value of what you’re paying compared to traditional gas and electricity supplies.

When you move into a new home, you should be told that your heating will be supplied by a heat network. Unfortunately, this isn't always the case. Once you're in, bills can be confusing and important information, such as maintenance charges and price rises, might not be clear. Customers can see huge variations in the way they're billed, and don’t usually get offered alternative payment options. That's why Ofgem has been appointed to regulate the heat networks industry.

You're often locked into a long-term contract 

One concern is that you can't switch your heating supplier and are usually locked into a long-term contract. That means you can't access cheaper tariffs (although you should be able to for your electricity supply – see our Cheap Energy Club to compare tariffs). But, if you're on a metered heat network, you can try to reduce your energy consumption to save a few quid. Try out some of our Energy saving tips, or if you're really struggling, see how you can Heat the human, not the home.

You may have to pay high maintenance charges

Being locked into a contract means you're also at the mercy of suppliers' service and maintenance charges - similar to daily standing charges on a gas or electricity bill. Plus you may have to contribute substantial amounts towards replacements or improvements in the heating system.

Heat networks aren’t required to offer any help to vulnerable customers – but that's changing

Unlike in the gas and electricity market, heat networks aren’t required to offer any help to vulnerable customers (unless it's part of the Heat Trust scheme). However, this is set to change when regulation comes into force in 2025. The government wants all heat network suppliers to maintain a Priority Services Register (PSR) and offer vulnerable customers appropriate support, similar to that already offered by gas and electricity suppliers.