Summary
Residents connected to council-run heat networks in the UK are facing higher heating costs because their bills are not covered by the national energy price cap. These networks, meant to reduce costs by buying fuel in bulk, have resulted in some residents paying significantly more for heating as compared to the capped rates. The government plans to have Ofgem regulate heat networks by 2026 to address these issues.
Key Facts
- About 500,000 homes in the UK are linked to approximately 13,000 heat networks.
- Heat networks buy gas in bulk on a commercial basis, which is not protected by the energy price cap.
- Since 2023-24, some heat network users have paid nearly 30% more than the energy price cap.
- The government plans to make Ofgem the regulator for heat networks in 2026.
- Dolly Thomas, a resident in London, faces a service charge of over £6,600, with more than half of it for heating and hot water.
- Heat networks divide the total gas used among properties, regardless of individual usage.
- Some older heat networks are inefficient, losing heat as it travels through poorly maintained pipes.
- Residents, such as Sharon Shanhani, report significant surges in bills due to these issues, with no usage meters in place to reflect actual consumption.
