District and communal heating suppliers must do more to address reliability issues and heat losses according to Heat Trust, which today published annual monitoring data on the sector.

The 104 heat networks registered with Heat Trust recorded 808 unplanned interruptions to supply caused by issues with the generation or distribution of heat around the networks, implying that the average customer would have experienced around six such interruptions in the year, this represents a significant increase on the 2020 figures, but is similar to the 2018 and 2019 figures.

In the light of the current crisis in gas prices, Heat Trust also highlighted that more needs to be done to address heat network heat losses, which are currently leading to very high heat prices for some customers.

Today’s report reveals that more heat providers are signing up to Heat Trust’s customer protection standards ahead of planned statutory regulation due in around 2024. Heat Trust is working closely with government and Ofgem to help develop these future regulations and the government has urged all heat networks to sign up to the scheme to ensure they are regulation-ready.

Heat Trust is the consumer protection champion for the heat network sector and aims to put customers at the heart of the rapidly expanding heat network market. It sets consistent customer service standards for the sector, equivalent to the legal standards set by Ofgem for domestic gas and electricity suppliers. The Scheme Rules ensure that customers who experience the worst supply interruptions receive compensation.

Up to five million homes could be reliant on the heat network infrastructure by 2050, a ten-fold increase from the estimated 500,000 homes currently on heat networks in the UK.

In its sixth annual report covering the year 2021, it found that:

• In 2021 Heat Trust provided protection to customers living in around 61,000 homes, up from 52,000 the previous year.
• There were 808 unplanned interruptions to supply caused by issues with the generation or distribution of heat around the networks, implying that the average customer would have experienced around six such interruptions in the year;
• Supply suspensions for debt have risen to their highest level since 2018; and
• The number of complaints taken to the Energy Ombudsman that were within their remit (Terms of Reference) increased from 80 in 2020 to 124 in 2021.

The government has called on all heat network providers to register with Heat Trust in advance of forthcoming statutory regulation to provide assurance to their customers and to ensure they are ready for regulation. More councils and housing associations are now registering their heat networks with the scheme.

Heat Trust Director Stephen Knight said: “Heat networks have a vital role to play in the decarbonisation of heating systems in the UK, as they can enable surplus and waste heat to be used to keep homes warm.  They can also be used to reduce the capital costs associated with decarbonisation of heating, by enabling the sharing of expensive low carbon infrastructure.

“However, to be widely accepted by customers, the industry needs to do more to address consumer detriment issues with existing heat networks, to build public confidence in this important technology.

“Our data shows that heat network customers continue to experience far too many supply interruptions, and we also know that high heat losses can lead to customers paying too much for heat.  These two issues must be addressed if the sector is to provide the ultra-reliable, affordable heating that customers need.

“When heat networks are registered with Heat Trust, consumers get a better experience. That needs to be at the heart of the sector’s growth plans.

“Regulation is only a few years away, so it is essential that heat network providers get prepared and have guaranteed service standards in place.

“Heat Trust is continuing to work with the Department of Business, Energy and Industrial Strategy and Ofgem on plans for regulation, and we will play an important role in making sure the sector is ready for this.”

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