An On the wire story
More than 500,000 households connected to heat networks could face a sharp rise in heating and hot water costs this winter, after Heat Trust warned that customers are exposed to un-capped commercial energy contracts that have already doubled in price.
The consumer body is urging the government to intervene quickly with temporary price support, arguing that people living on communal heating systems should not be left to absorb increases that are largely beyond their control.
Heat networks deliver warmth and hot water to multiple homes and buildings from a shared central source, and ministers regard them as an important part of the UK’s future energy mix.
Government estimates have suggested they could supply almost a fifth of Britain’s heat by 2050, and in January 2026 Ofgem became the sector’s regulator, with new protections intended to curb unfair charges, improve billing and strengthen support for vulnerable customers.
But despite those changes, heat network customers still do not have protection equivalent to the domestic energy price cap.
According to Heat Trust and the Association for Decentralised Energy, the problem is that network operators usually buy gas or electricity through commercial contracts, so wholesale and non-domestic price rises can flow straight through to household bills.
Stephen Knight, the trust’s chief executive, warned that families could see heating and hot water bills double unless ministers act, saying there is no practical way for customers to shield themselves from the increase.
The groups say a typical 12-month commercial gas contract already costs roughly twice as much as it did a year ago, and they warn that further volatility in gas markets could push tariffs from around 10p to 15p per kilowatt hour to as high as 20p to 30p.
On that basis, the organisations estimate that an average household could see annual bills rise from about £840 to £1,680, before fixed charges, with older networks and social housing estates particularly exposed because of higher gas use and heat losses.
They are calling for a temporary price support mechanism modelled on the Energy Bills Discount Scheme, which previously offered extra help to heat networks serving domestic customers during the energy crisis.
Their argument is that support should limit winter rises to something much closer to what households with individual gas boilers face under the price cap, rather than allowing a growing class of consumers to fall through the gap between domestic and commercial energy regulation.
References
Main reference Installer Online [1]
• This On the wire article was created using Noahwire AI and reviewed by CIBSE Journal’s editorial team
