Over five million households in the UK are facing the prospect of significant increases in their energy bills as a result of a major network roll-out. The government is aiming to expand the number of heat networks across the country, with the Climate Change Committee estimating that 5.5 million homes could be supplied by a heat network by 2050.

Heat networks, also known as district heating, supply heat from a central source to consumers via a network of underground pipes carrying hot water. However, homes supplied by communal heating systems do not benefit from the same protections offered to those with a conventional gas and electricity supply. Currently, heat network operators and heat suppliers are unregulated, leading to substantial price fluctuations as they are not bound by a price cap.

Stephen Knight, head of the non-profit consumer champion The Heat Trust, has expressed concerns about the potential impact of the heat network expansion. He warned that without introducing a price cap, many households could face higher bills, particularly if there is another energy crisis that pushes gas prices up in the commercial sector.

At present, an estimated 480,000 households are connected to a heat network, with many of these residents being on low incomes and living in council-owned tower blocks. The energy crisis has led to persistently high prices, with some households reportedly paying up to 50p per kWh for gas at one point. This is significantly higher than the 7.8p per kWh cap introduced by the government for those on heat networks through the Energy Bills Discount Scheme in April 2023.

The situation has raised concerns about the vulnerability of households on heat networks, especially in the absence of a price cap. With the potential for further price hikes and the lack of regulatory safeguards, many households could find themselves facing financial strain due to their energy bills.