Ministers urged to help 500,000 families left out of energy price cap

11 March 2023 , 17:04

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Heat networks are not regulated by Ofgem (Image: Getty Images/iStockphoto)

Government must step in to help half a million families who have been left out of the energy price cap and are paying £1,000 more to heat their homes.

Heat networks, which pump hot water to multiple homes from a central boiler, are not covered by the government’s price cap.

Households are not able to opt out or switch to a different supplier - meaning that they have no choice but to pay these high prices.

And as many as half of London homes served by heat networks are flats and social housing in urban areas, meaning many of the capital’s most vulnerable are stuck paying over the odds.

Alan Whitehead, Labour ’s Shadow Energy Minister, said: “Before heat network customers even turn on their shower or their heating, they are at a severe disadvantage, paying a premium for a system they have no choice but to be part of.

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“The Government have been warned time and again about the lack of regulation for heat network customers and have refused to do anything about it.”

Jeremy Hunt has been urged to do more to help struggling families with energy bills in Wednesday's budget (AP)

Analysis by Labour shows that heat network customers are being charged £515 million more annually than households supplied by gas – more than £1,000 per household.

And it’s feared many suppliers, who are not regulated by Ofgem, will hike prices even further from April 1st.

Labour has called on the Government to bring the stalled Energy Bill back to the House of Commons.

“The Tories know that the Energy Bill would be an ideal place to do this and yet the Bill seems to have disappeared under their watch, leaving consumers without protection at the time they most need it,” Mr Whitehead added.

A Government spokesperson said: “We know this is a difficult time for families, which is why the Government has covered around half of the typical household’s energy bill this winter.

“Heat network customers are receiving support through our Energy Bill Relief Scheme and the law requires heat network suppliers to pass on savings to residents in a just and reasonable way.

“Heat network customers will continue to receive a discount on their energy bills until 31 March 2024 through our Energy Bill Discount Scheme.”

Mikey Smith