A recent update from Heat Trust caught our attention, particularly their announcement welcoming the Energy Ombudsman and emphasising the value of Heat Trust membership ahead of Ofgem gaining full regulatory powers in 2027.
This raised an important question: is it worthwhile to join Heat Trust - whilst also joining the Energy Ombudsman, before formal registration with Ofgem becomes mandatory?
Some concerns include whether this might duplicate future regulatory requirements, introduce additional (albeit modest) costs, or create confusion around compliance both for consumers and internally within organisations.
Heat Trust claims that it was the only way to ensure that consumers are protected ahead of Ofgem regulation, which is true from an independent oversight perspective. However, the extent of powers and oversight provided by the Heat Trust does not match what Ofgem will have. A simple example of this is pricing, which is very relevant to many consumers and the role of Ofgem in future but is outside the remit of Heat Trust.
Whilst Heat Trust was an excellent step towards the role of regulation, now that it is becoming imminent the focus of organisations should be on ensuring future compliance, as the details arise. It might be the case that Heat Trust does offer support for heat network suppliers to transition towards the future role of Ofgem and if it does, it is absolutely work signing up to.
As a heat network supplier, if you feel that focussing on Ofgem and wider regulatory compliance is achievable and Heat Trust might not assist in what you are looking to implement anyway, it does not make sense now for less than two years. One of the benefits of Heat Trust in the past was accessing the Energy Ombudsman, as an independent organisation for dispute resolution and the settling of complaints, which is available now anyway to all heat network suppliers and consumers.
What is now most important with the new role of the Energy Ombudsman, is that heat network suppliers have appropriate Heat Supply Agreements with their consumers, which the Energy Ombudsman can make decisions based on, not market norms or expectations which would otherwise be the case.
If you need support in signing up to the Energy Ombudsman, including whether you need to, or how you can understand and comply with future heat network regulations, please Get in Touch and our team will be happy to help and support you.
