Community Heating Blog

BEIS Open letter to heat network operators

Written by Kirsty Lambert | 15-Apr-2019 10:44:48

A brief guide to the Department for Business Energy Industrial Strategy (BEIS) open letter to heat network operators. 

 

Beis open letter SlideShare from Switch2 Energy Limited

 

Heat network key milestones: 

Since 2014, focus on heat network industry has gained momentum: 
 
2014:
  • Which? Turning up the heat 
  • Heat network (metering and billing) regulations 
2015: 
  • CIBSE/ ADE Code of Practice CP1 launched
  •  Introduction to the Heat Trust

2016
  • UK Government funds £320 million to support district heating schemes

2017

  • BEIS market report

2018

  • CMA Market study findings released

2019

  • SAP 10 updates and Building L Regulations affecting heat networks
  • Proposed pending heat network regulation
 The latest announcement is the open letter from Claire Perry, Minister of State for Energy and Clean Growth
The letter recognises the importance of heat networks
"Decarbonising our heating supply is one of the biggest challenges we face as a nation." 

Why are heat networks important? 

 
Environment: One central boiler plant is more efficient than individual boilers
Economic: Community heating can cut the costs to housing management and the resident 
Social: Addresses fuel poverty by reduced energy bills. Affordable warmth also reduces cold and condensation related illnesses.

Putting the customer first 
The letter highlights how more must be done to make sure customers are treated fairly. 
It identifies the Heat Trust as a driver for good industry practice. 
 
"One of the organisations working hard to establish good industry practice is the Heat Trust. The Heat Trust is an independent organisation seeking to drive up standards of performance of heat networks and improve the customer experience through a voluntary industry scheme." 
 
The letter encourages existing heat networks to adopt the Heat Trust standards. Providing a service comparable to gas and electricity companies: 

  • Support for vulnerable customers
  • Responding to faults and emergencies
  • Guaranteed service for payments for interruptions in supply 
  • Transparency in metering and billing
  • Complaints handling, including access to the Energy Ombudsman

Key takeaways
The letter outlines how using the Heat Trust scheme rules as a benchmark, the industry can take a unified approach to customer service standards
It will help the industry 'get in shape' before Regulation comes into play 
It will provide better control to the customer, with access to an ombudsman for dispute resolution 
Thus driving customer confidence in the market.