Agreement signed to protect heat networks customers

Major suppliers have signed up to an agreement not to cut off heat networks customers during the coronavirus pandemic.

The ten members of the Heat Networks Industry Council, which include EDF Energy, Eon and SSE Heat Networks Ltd, announced the agreement today (1 May).

The council’s other members are Energetik, Pinnacle Power, Switch2, Vattenfall, Veolia and Vital Energi.

The agreement comes ahead of moves by the government to implement a recommendation by the Competition and Markets Authority to extend regulatory protection of energy customers to the tens of thousands of customers who rely on heat networks.

Measures in the agreement include ensuring all customers remain supplied with energy, heating and hot water through challenging times and supporting customers in financial distress.

Suppliers may consider reassessing or reducing debt repayment and bill payments for domestic customers in financial distress.

Other steps could be suspending credit meter disconnections and referring customers who are struggling to pay to third party debt advisers such as Citizens Advice.

The agreement also includes commitments to identify and prioritise customers at risk, supporting prepayment meter customers to stay on supply and providing information, advice and guidance to customers on what help is available.

The agreement states that heat network operators recognise that the impact of the Covid-19 pandemic will plunge households into vulnerable circumstances.

It also says that vulnerable customers with health conditions may need to maintain a constant supply of heating and hot water.

And given that any disruption to supply of heating and hot water will have a “significant impact”, consumers should be reassured that repairs to outages will be prioritised.

The council’s members have agreed to promote online and/or telephone smart prepayment top-up channels, where available.

Where this is not available, based on individual circumstances, extended credit could be sent out on a pre-loaded top up card.

Responding to the agreement, Citizens Advice chief executive Dame Gillian Guy, said “The coronavirus pandemic has highlighted the need for all energy consumers to be treated fairly when it comes to essential services. Heat network customers don’t have the same legal protections as electricity and gas customers, so it’s good to see the industry, through its trade bodies, stepping in to help at a time of crisis.

“We’ve worked very constructively with the heat network industry to formulate this agreement. In the longer term, we’d like it to form the basis of a permanent regulation framework which brings protections for heat network customers in line with other energy consumers.”