Citizens Advice response to Ofgem’s consultation on authorisation and regulatory oversight of heat networks
This consultation - alongside the joint DESNZ/Ofgem consumer protection consultation - are key steps as Ofgem prepares to take on responsibility for the heat network sector. Lack of data on heat networks makes it critical for Ofgem to build a regulatory framework and monitoring capacity quickly. Estimates of heat network consumers range from 505,000 to almost 1 million - and there have only been 2 quantitative consumer surveys of the sector in the last decade. The lack of available data means Ofgem should balance risk in favour of consumers.
Overall, we broadly agree with Ofgem’s proposals. However, we encourage the regulator to make bold decisions to protect consumers in the areas of: managing the risks of consumers falling through the gaps created by subcontracting, and regular monitoring of key metrics of consumer harm.