Heat networks create local monopolies, as with electricity and gas distribution, but are not currently regulated in the same way.
The Independent Heat Customer Protection Scheme establishes standards of protection and a service for settling disputes between customers and heat providers. This was identified in the Department of Energy and Climate Change (Decc) heat strategy as a “practical step” to help develop the market.
District heating currently serves 2 per cent of customers. According to Decc models, this could grow to 14-20 per cent in 2030.
Tim Rotheray, director of the Combined Heat and Power Association, which coordinated the scheme, said: “It is vital that consumers, government and investors know that district heating will deliver a fair deal to users. These proposals aim to ensure this happens.”