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The level of protection afforded to district heating customers is “proportionate” according to energy secretary Amber Rudd, despite the sector not being regulated by Ofgem.
In a letter to the Energy and Climate Change Committee following a meeting on 10 November to discuss the Department for Energy and Climate Change’s annual report and accounts, Rudd said the government felt the current measures for protecting district heat customers were proportionate to the “current consumer challenges in the sector”.
The committee questioned what Decc was doing to protect customers receiving heat from sources Ofgem cannot regulate, such as district heating systems, in the session.
Concerns have previously been raised by Ofgem’s chief executive Dermot Nolan at another committee session in October.
Rudd confirmed in the letter that the lack of possible regulation by Ofgem leaves some customers “at risk” and that the standard consumer protection and competition law that protects them is now being supplemented by voluntary industry-led measures such as the Heat Trust.
The Heat Trust, officially launched last month, is an independent protection scheme intended to improve performance, reliability and customer service for heat customers.
Big six suppliers Eon, SSE Heat Networks and Metropolitan King’s Cross are amongst the Trust’s first members.
The Energy Ombudsman will provide an independent complaints handling service to ensure “fair treatment of customers”.
Rudd also said metered customers will get clear, transparent information about their heat usage and billing costs due to new regulations introduced on the metering and billing of heat as part of the UK’s implementation of the Energy Efficiency Directive.
Rudd said: “The government is supporting the wider deployment of heat networks as an important part of our transition to a secure and affordable low carbon future.
“We recognise that as the sector expands, we must ensure that effective consumer protections and service standards are in place.
“Government will continue to assess and monitor the impact of this package of measures as they are implemented, to ensure they meet heat customer needs effectively.”
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