Asked by: Margaret Mullane (Labour - Dagenham and Rainham)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what powers Ofgem has to intervene where heat network prices are considered excessive.
Answered by Martin McCluskey - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
As the regulator of heat networks, Ofgem have broad powers relating to price regulation. These include powers to investigate and intervene where heat network prices charged to consumers are disproportionate or unfair.
Under Ofgem’s authorisation regime, heat network operators and suppliers are required to charge consumers fairly and guidance has been published on the application of their fair pricing rules.
Heat networks have until January 2027 to register with Ofgem and supply data, including information about pricing. Ofgem will use this to further inform their approach to pricing rules and guidance.
Asked by: Margaret Mullane (Labour - Dagenham and Rainham)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what protections are in place for consumers on heat networks wishing to challenge charges before the completion of the Ofgem authorisation process in January 2027.
Answered by Martin McCluskey - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
Since the introduction of the heat network regulator, Ofgem rules require operators and suppliers to charge consumers fairly and guidance has been published on the application of their fair pricing rules.
Heat networks have until January 2027 to register with Ofgem and supply data, including information about pricing. Ofgem will use this to further inform their approach to pricing rules and guidance.
We have also introduced statutory consumer advice and advocacy services for heat network consumers since April 2025, including on price. For unresolved disputes, heat network consumers can refer their case to the Energy Ombudsman who can provide statutory redress as part of their Alternative Dispute Resolution scheme.
Asked by: Margaret Mullane (Labour - Dagenham and Rainham)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what his Department's planned timetable is for the full implementation of the heat network regulatory framework.
Answered by Martin McCluskey - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
Government has introduced statutory redress through the energy ombudsman and statutory advice and advocacy through Citizens Advice and Consumer Scotland for heat network consumers from April 2025. The Department has subsequently introduced Ofgem as the heat network regulator from January 2026. Heat network suppliers and operators have until January 2027 to register with Ofgem and supply data. Ofgem will use this to further develop the regulatory regime including informing their approach to pricing rules and guidance.
The Department have also consulted on mandating minimum technical standards for heat networks, to deliver better outcomes for consumers. A government response will be published in due course.