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Heat Trust is the customer champion for those living and working on heat networks.  To fund our activity we levy two fees on Registered Participants: the Scheme Annual Fee and the Site Registration Fee.  As a not-for-profit organisation, both these fees are set based on an assessment of the cost of our ongoing operations for the forthcoming year.

We are mindful of the importance our operations have for ensuring customers benefit from heat networks that are fit for the future.  We are also aware that our operations impose a cost on Registered Participants, a cost which is ultimately borne by those same customers.  We are therefore committed to ensuring we continue to provide high levels of customer assurance whilst also delivering efficiencies in our operations that reduce the costs of regulation for all.

Given this, and following development of our business plan for forthcoming year, we are now in a position to confirm our fees for the twelve-months from 1^st April 2021[1].

Scheme Annual Fee

From 1^st April 2021 the Scheme Annual Fee for all existing Registered Participants will reduce by 4% from £4.80 to £4.61 per connection, exclusive of VAT. 

This reduction masks a material increase in our planned level of activity for the coming year, and underlines the degree to which we have implemented, and continue to seek, efficiencies in the way in which we deliver that activity.

Site Registration Fee

From 1^st April 2021 the site Registration Fee for all new sites registered with us will increase by 17% from £85.31 to £100.00 per site, exclusive of VAT.

This increase follows an assessment of the average time it takes to complete each new site registration, and more accurately reflects the costs incurred.

2021/22 will be a very important year for both the wider heat network sector and the customers who rely on it.  We remain committed to increasing our impact for customers, raising standards, and ensuring a minimum level of protection - whilst also improving the efficiency of how we deliver that.  These changes reflect that commitment.

If you have any questions regarding these changes and how they may impact you or your organisation, please do not hesitate to contact us”.

 

[1] As per Scheme Byelaw 3.1.1

Heat Trust ensures that suppliers adhere to the minimum customer protection standards set out in our Scheme. One way that assurance is provided is through an independent audit of whether suppliers are meeting these standards, something that takes place at least once for each site in every five year period. The COVID-19 pandemic has prevented this from happening for a number of sites in 2020 however.  At a recent meeting, the Heat Trust Board agreed to extend the five year deadline by one year for the sites affected.

The sites affected are: (E.ON) Greenwich Millennium Village; Romford Reflections; Waddon; Fulham Wharf; Myatts Field North; Canning Town 3; Cannon Wharf; Centenary Quay; New South Quarter; Blackwall Reach; Loampit Value; Bath Riverside; Maple Quay; St Andrews; Queensland Road; Scotswood; Barham Park; Greenwich Reach; Alie Street; Newbury Racecourse; Dalston Square; Trafalgar Place; Catford Green; West Hendon; Lincoln Plaza; Barrier Park; Enderby Wharf; and (SSE) Greenwich Square / East Greenwich; Woolwich Royal; Riverlight Heat.

The audits for each of these sites have now been replanned, and all will be completed by July 2021.

In May 2020, several ADE members signed an Agreement to ensure that heat network customers were protected and supported during the Covid-19 pandemic.  Heat Trust, as the independent, not for profit, customer champion for those who live and work on heat networks agreed to provide independent monitoring of signatories’ compliance with this Agreement. 

Our first report covering the period July to September 2020 has now been published. This report, and the accompanying qualitative statements from signatories highlight both reasons for optimism and examples of good practice, but also areas of concern the ADE must now move to address. Specifically:

• Reported levels of customer debt fell over the period; and  
• Evidence of innovative and proactive customer engagement; yet
• Ongoing customer disconnections;
• Patchy levels of support; and
• Incomplete or late submissions prevented full scrutiny.

These areas are expanded on in our response, published here.

Heat Trust has responded to the Department of Business, Energy and Industrial Strategy (BEIS) consultation on building a market framework for heat networks. Heat Trust welcomed the consultation and supports the decision to appoint a sector regulator. Statutory regulation is a key step to ensuring customer protection for all heat network customers.

The key proposals in the consultation centre on licensing and an authorisation regime:

• The proposed legislative changes will give heat network developers equivalent statutory rights and undertakings to other utilities, such as gas and electricity. A licensing arrangement will be established for those parties that wish to secure these additional powers.
• The proposed authorisation regime for consumer protection would give Ofgem oversight and enforcement powers across quality of service, provision of information and pricing arrangements for all domestic heat network consumers. This would be funded through fees scaled according to the regulated party’s size.

Transparency, pricing and quality of service standards are key elements of the protection regime customers need. Other important aspects include access to independent redress and enforcement powers - with which heat networks can be held accountable to.

Heat Trust already sets minimum standards in many of these areas and can help suppliers prepare for the transition to regulation. We also look forward to building on our learnings and experience with government to help inform new regulation.

Heat Trust’s full response to the consultation can be found here.

Heat Trust, the consumer champion for heat networks, has appointed a new Director.

David Watson takes up his new role on 1 June, replacing previous Director Bindi Patel.

David comes to Heat Trust from Centrica, where he was Director of Group Strategy. Prior to this role, he was Head of Market Design and New Energy for British Gas, with responsibilities including leading low carbon policy development within the GB and EU retail market. He said:

"I am delighted to be joining Heat Trust at what is a very important time for both the organisation and the wider sector. Membership is growing and customer service standards continue to rise across the sector. 

Up to five million homes could be reliant on the heat network infrastructure by 2050.  Consumer interests need to be absolutely at the heart of this growth and I look forward to building on the fantastic work that has been achieved over the past five years.”

Ms Patel has been at Heat Trust since it was launched in 2015. During this time, she has overseen Heat Trust’s coverage expand to more than 10% of the market with 80 heat networks registered serving over 50,000 homes and micro-businesses. Heat Trust’s work has been recognised by the Government and has become a recognised industry standard. She said:

“I am proud of the work we have achieved in championing consumer protection in a sector that will grow ever-important as the UK works towards net-zero carbon targets. Over the last five years Heat Trust has worked to deliver benefits for customers through the standards it sets, which suppliers strive to meet for the good of the industry. I am delighted to have contributed to that and look forward to seeing Heat Trust grow further.” 

Casey Cole, chairperson of Heat Trust, welcomed David to the team and wished Ms Patel well in her future role. He said:

“We are delighted by the success of Heat Trust, and we would like to thank Bindi for her leadership and dedication to the scheme’s success over the past five years. We wish her every success in her new position. David has a proven track record that will see Heat Trust go from strength to strength and we look forward to moving forward under his leadership.”

ENDS