Heat networks group claim
We are investigating a group claim on behalf of heat network customers who are paying very high prices for their heating and/or hot water. These prices which seem excessive, could be explained by the poor quality of some heat networks, uncapped bills and other factors.
Please note
It is not possible to register your interest in this investigation anymore.
Please note that this investigation has concluded. You can no longer register your interest in the Heat Network group claim.
What is a heat network?
Put simply, if you obtain heating and/or hot water from a central source which supplies multiple properties, you are probably a heat network user. These networks typically supply numerous flats in one or more neighbouring buildings, or numerous houses in an estate, eliminating the need for individual boilers in each property.
Heat networks are normally managed by private companies, housing associations or local authorities.
What are the problems with heat networks?
In 2018 the Competition and Markets Authority (CMA) found that some heat networks offer poor value for money to their customers and that unit prices and average bills vary significantly between networks.
This year huge price rises have hit heat network customers, often already overstretched by the cost-of-living crisis. Stephen Knight from the Heat Trust, an organisation which campaigns to protect consumers in this sector, has reported rises of 300%-700%. Whilst the current energy crisis partly explains this, the level of some rises is suspicious.
Problems with the quality and transparency of heat networks, are also worrying. For example, the Heat Trust has reported that heat losses are leading to very high heat prices for some customers. The CMA has indicated that a large proportion of customers’ bills are not calculated in a transparent way given the lack of reference to actual or estimated household use.
Heat networks are still unregulated, despite the CMA recommending in 2018 the introduction of protection which currently is only available to consumers in the gas and electricity sectors. Heat network customers are typically not allowed to change their provider – i.e. they can’t shop around for the cheapest/most convenient price in the market. All these factors make the very high prices charged by some heat networks, even more suspicious.
In this context, Paul Bolding reported a price rise of 344% in June 2022, in this BBC article where he understandably expressed his frustration at the lack of regulation to protect people from "unscrupulous operators".
What is Leigh Day doing about these problems?
We believe some heat networks may be breaching the contracts they sign with their customers and may be breaching rules aimed at protecting consumers. We are therefore investigating a potential group claim on behalf of customers affected by these problems. The purpose of this claim would be to recover the excessive heating charges that individuals have had to pay.
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