Today is a major step forward for heat network customers — but the work doesn’t stop here
Today Ofgem launches new regulations for heat networks in Great Britain. This marks a huge milestone for the estimated 1 million people already living on heat networks, with the government committing to an ambitious increase in heat networks as part of their Warm Homes Plan . The new rules introduce consumer protections that people have long taken for granted in the gas and electricity sector:
- Customer service standards to make sure people are treated fairly
- Billing transparency so people can clearly understand what they’re paying for
- Debt support for those who struggle with their energy costs.
Citizens Advice welcomes Ofgem and DESNZ’s work to introduce similar protections for heat network consumers. It’s something we’ve been calling for since 2017, and as the new statutory consumer advocate for these consumers, we’ve used our insights to shape their development over the last year. Over time, these protections will make lives better for heat network consumers.
Supporting consumers during the transition
But the consumer experience won’t be transformed overnight. There are thousands of heat networks across the country, which vary in size, age and efficiency. We won’t fully understand the state of the sector until all suppliers register with Ofgem, which they’re required to do by January 2027. More protections, including guaranteed standards of performance for heat networks, will be consulted on later this year.
During this time, we’re here to support people. Our advisers will be helping people across England and Wales with a range of issues like billing, debt, and customer service. Consumers can call 0808 223 1133 (Monday to Friday, 9am to 5pm) or visit our website for our updated advice. In Scotland, ADS provides similar support. We will continue to share insights on how new rules are impacting consumers.
Billing issues can cause serious problems
Developing the new framework has been a collaborative effort — involving the regulator, government, industry and consumer bodies — and continued collaboration and transparency will be critical to success in the coming year. In that spirit, today we are publishing a new billing best practice guide for the heat network industry.
Billing issues are the single most common type of problem our advisors have helped people with. Since we launched the service last April, more than half (57%) of the cases we’ve dealt with have been related to billing, compared to a third (33%) for gas and electricity customers.
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The new protections will help heat network consumers in the long run. But there are ways that heat network suppliers could go even further to ensure best practice. While the new rules cover the frequency and content of bills for metered customers, we’ve included practical ways that suppliers could also improve standards for unmetered customers.
Intervening where there is harm
Ofgem has made clear that it will focus its compliance work where harm is highest and involves vulnerability. This is the right approach, and Ofgem should be ready to intervene where they identify harm. We’ll use our unique data and insights to understand heat network consumers’ lives in 2026.
Our data suggests 3 areas of high harm where Ofgem should focus:
- Disconnection
- Back-billing
- Reliability
We’ve seen a number of cases where consumers who are unable to afford their bills have been disconnected due to debt — something which has been virtually eliminated in gas and electricity — and while new rules are aimed to reduce this risk they may need to be strengthened.
Fixing the protection gaps facing bundled consumers
Around a third of heat network users have their heating and hot water bills ‘bundled’ with their rent or service charge. Bundling can make it harder for people to understand their costs, and it also risks undermining key elements of Ofgem’s new framework. For example, the new 12-month back-billing limit won’t apply for bundled consumers, meaning landlords can pursue charges up to 18 months old — or longer if their supplier bills them late. Progress on unbundling is essential to ensure that back-billing protections apply to all consumers. Resolving this requires urgent coordination between the energy (DESNZ) and housing (MHCLG) departments alongside the regulator, or a third of consumers will be stuck with fewer protections.
Making heat networks reliable
The reliability and efficiency of existing heat networks is a huge concern: more than 1 in 10 (12%) of the cases our advisers dealt with since April have involved heat networks that are off supply, or having issues with the reliability of their supply. That’s more than 10 times (1%) the rate we’re seeing for mains gas and electricity. The Heat Network Technical Assurance Scheme (HNTAS) will introduce much needed standards for new and existing heat networks. This is welcome news, but the costs of upgrading existing networks is likely to require significant funding, the majority of which will likely be borne by consumers. Finding a way to manage these costs fairly will be a major challenge for the government over the coming year.
Ofgem’s new rules are a landmark moment for heat network consumers, but they are just the beginning of the journey. We’ll continue to share real-time insights from our frontline services to ensure the regulator knows exactly where the system is working and where it’s falling short.
