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Heat networks are failing consumers

On paper, a heat network seems like an excellent idea. Surely heating hundreds of homes from one central system should be more efficient than running hundreds of individual boilers? In theory, heat networks should cut energy use and make decarbonising heat much easier.

Sadly, as many of the million or so households connected to one will know all too well, the reality can be very different. Regular outages, soaring bills and flats that are punishingly hot in summer and dangerously cold in winter have become a feature of Britain’s network of heat networks. And residents connected to them have been brutally exposed to the price volatility that has characterised energy markets since the war in Ukraine began – unprotected as they are by the energy price cap which covers most households.

Recognising these problems, the Government recently got moving on a new system of regulation and oversight. As of January this year, Ofgem took over responsibility for regulating heat networks as well as other gas and electricity consumers.

But this regime has hit early problems and bigger issues are looming as further price rises creep up thanks to the conflict in Iran. While this may be framed as a niche problem, it is one that Andy Burnham’s new administration should take a keen interest in before it becomes a bigger scandal.

Another winter without basic protections

The first issue is that the guaranteed standards of performance promised by Ofgem are not yet in place. These performance standards grant consumers the right to compensation if heating or hot water is off for too long, and require alternative provision for vulnerable customers.

This has been a major problem on heat networks. I have spoken to people in their 80s who have spent weeks without heating in the middle of winter, and young professionals who have had to drop off at the local gym every morning for months before work to get a warm shower.

But nothing has happened. Heat Trust – a consumer group – is extending its voluntary standards regime to fill the gap, but this only covers part of the market. As it stands, consumers face another winter without protection.

Consumers are paying for wasted heat

The next problem is technical performance. In many cases, only 35% of the energy contained in the gas burned in the communal boiler is delivered to homes for heating and hot water, and in the worst cases efficiency drops as low as 15%. By contrast, a household boiler is about 85% efficient. This is a terrible state of affairs – both because it wastes energy and because consumers still have to pay for it.

New technical assurance standards were supposed to require building owners to bring existing networks up to a minimum level of performance, while ensuring new systems are built properly. Much of the problem is remarkably basic: pipes aren’t insulated and heat is wasted.

This has contributed to some devastatingly hot temperatures in blocks of flats this summer: the heat that leaks out doesn’t just disappear, it goes into communal areas and people’s homes. I know of flats where indoor temperatures stay artificially high all summer thanks to the heat network. In the summer just past, that was a very, very dangerous state of affairs to live through.

But building owners are fussing about how the upgrades will be paid for, and the lobby for builders is worried that tighter new standards will result in delays and red-tape.

“[W]e’ve had a lot of people in industry talking to officials and ministers, trying to claim that the scheme as proposed is too burdensome, is too difficult to deliver, can’t be done, and so on. And at the moment, it’s on hold,” says Stephen Knight, chief executive of the Heat Trust.

“And my concern is that the voice of consumers and the interest of consumers is going to get lost in this a little bit, and people will forget that the reason that we’re doing this is that the current heat networks are often so inefficient that they’re completely unaffordable for consumers. We can’t carry on just expecting consumers to be a magic money tree to pay for all this energy that’s being wasted.”

Who pays to fix the system?

The question about how the upgrades will be paid for is a legitimate concern. The Government does not have enough money on the table currently to cover what could be substantial work. Without additional funding, the cost could ultimately fall on leaseholders and social housing tenants through their service charges and rents. Part of the £450 million boiler upgrade programme could be rerouted to heat networks, producing a bigger carbon saving for less money.

Finally, there is a looming disaster on costs. Unlike households with conventional gas heating, heat network customers are not protected by the domestic energy price cap. Their building owner typically buys energy on commercial markets and passes the cost on. In the aftermath of the War in Ukraine, some tenants faced eviction because they could not pay bills which rocketed by more than 350% as gas prices spiked. The conflict in the Middle East may not have caused spikes quite this severe, but it has sent prices up. Without protection, some of the poorest households in the country will face the biggest energy bill increases.

Some form of price capping is essential to avoid this. “We’ve argued the answer is to regulate the price of energy supplied to heat network, so all heat networks can get a reasonable, fair price for their energy,” says Mr Knight. “The prices have to be smooth – based on an average price over the preceding three month period or similar, to avoid these horrible spikes. There is no reason why heat network customers should be totally unprotected when other homeowners are. It’s unfair.”

The Government has a lot of things to think about currently, and heat networks are easily forgotten. But there are millions of people out there in homes that are expensive to heat and often far too cold or far too hot. 

Postscript

A spokesperson for Ofgem said: “The introduction of heat networks regulation marks a significant milestone in strengthening consumer protections. Our focus is on getting the framework right so it delivers better outcomes across the whole sector. Where heat networks currently provide protections or compensation arrangements, including through voluntary schemes, we expect suppliers to continue to honour these.”

“The Guaranteed Standards of Performance (GSOPs) were always intended to be a phased element of the new heat network regulatory framework. We will consult on the next stage of these proposals later this year.”

Pete Apps is the author of Homesick: The End Of London, which covers the impact of housing policy changes on communities in the capital. It is out in paperback now and available here. He is speaking in Manchester with Isaac Rose from the Greater Manchester Tenants Union about housing crisis in both cities on October 13. Free tickets are available here. 

Would you like to write for Red Brick? Email rose.grayston@gmail.com to pitch your piece (c.600-900 words)

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More council homes, lower bills, stronger communities: Cambridge’s approach to building better

When people talk about sustainable housing, they generally focus on the physical structures. During my career as an architect, and now as part of Cambridge City Council’s Labour administration following the May 2026 elections, I have developed a broader vision of what counts as sustainable, looking beyond the building itself to ask how it works within the wider social setting, as a home and not just a house, and as part of a neighbourhood that meets people’s wider needs.

This means taking account of both the built and social environment, providing more than just basic housing, and understanding how a house contributes to the surrounding streetscape. When we build, we are not just assembling structures but weaving new threads into the existing community, and we need to make sure that everyone has the facilities and spaces they need to live sustainable, good lives.

So while my focus in Cambridge is on the quality of our council housing, our planning always takes account of that wider perspective, so that we build homes people want to live in, in attractive neighbourhoods with the amenities they need and good transport links.

We have built many council homes in Cambridge in the last eight years. Initially we had support from a £70 million funding package from our devolution deal with the Cambridgeshire and Peterborough Combined Authority, through which we committed to building 500 new council homes. In those early days, the Council’s focus was almost exclusively on quantity as we worked to hit our target. While we built to standards that were slightly better than national building regulations, the volume of delivery was our primary driver. We completed our 500th council home a year ahead of schedule, and have now built more than 850 new council homes.

We have evolved our approach in recent years. We still want to build at pace, but we also want to build to the highest possible quality. Investing in the fabric of the building was a strategic choice. Although it can increase upfront costs, it directly helps our tenants by bringing down utility bills and improving the comfort of their homes. This is only growing in importance as we experience the consequences of the climate emergency.

As the executive councillor for planning, I was proud to help bring forward our sustainable construction Supplementary Planning Document (SPD). Alongside this, we introduced a sustainable housing guide for our council house programme that aimed for certified Passivhaus standards. This was a highly significant moment, making it clear that we were aiming to build the most energy-efficient homes possible in Cambridge.

Yet, as any local authority knows, we have to constantly balance environmental ambitions with financial reality. We discovered that strict Passivhaus certification was incredibly expensive and financially demanding. Furthermore, Passivhaus design is heavily reliant on orienting and positioning buildings in particular ways. That’s not always possible when you are working with complex, irregular, or difficult urban “infill” sites – the sort we rely on to deliver the density of homes our city  desperately needs.  Recent schemes including Arbury Road and Kings Hedges in North Cambridge relied on the Cam Standard to make them viable.

We have not let this curtail our ambitions. In 2024 we created the “Cam Standard.” This bespoke standard acts as a robust baseline that maintains our commitment to energy efficiency and climate-change resilience, while offering the practical flexibility required for complex urban sites. It is a realistic, scalable stepping stone that ensures all our developments prioritise lowering energy use, with the explicit goal that all proposed council homes will target Net Zero Carbon by 2030.

And now we have the next stage to look forward to. as Cambridge is one of three councils to have secured long-term funding as a strategic partner under the government’s Social and Affordable Housing Programme (SAHP). This funding gives us the certainty we need to plan over a longer horizon and develop the pipeline for building another 1,400 high-quality council homes across our city, with the aim of ensuring 60% of those are available at social rent.

This funding is especially vital given the massive development pressures facing Cambridge. The government is planning major expansions, with a Development Corporation set to oversee significant growth. Our position as a Labour council is clear: we must protect the integrity of council house building and ensure there are genuinely affordable homes for our residents. Through our joint venture with The Hill Group, the Cambridge Investment Partnership (CIP), we aim for 50% of the homes built on our schemes across the city to be council homes. We will be engaging robustly with the incoming Development Corporation to ensure they recognise how vital this 50% target is in a city with such highly priced market homes.

Looking forward, all our new-build sites are fully electric and gas-free, and we want to provide on-site energy generation through PV. At the same time we’re looking at energy storage systems. While current lithium batteries raise environmental and safety concerns, the emergence of sodium batteries offers an exciting, sustainable alternative. Our ultimate goal is to provide “zero-utility-bill” council housing.

They are also designed as “Lifetime Homes” where a young couple can move in and expect to remain for their entire lives. All homes have private outside spaces and are wheelchair accessible, featuring wider doorways and, downstairs toilets. 5% of homes are also built with further adaptations for wheelchair users in mind.

Through our house building programme we have also built five new community centres, seven new parks and play areas, two pre-schools, one library and new shops. We have provided a further £12.2 million of funding to support local schools, parks, sports centres and the NHS.

By building high-quality, adaptable, and community-focused homes, I like to think that we also show private developers what is truly possible. In doing so, we are honouring the deep legacy of our movement. As the great Aneurin Bevan famously observed of post-war housing needs: “While we shall be judged for a year or two by the numbers of houses we built, we shall be judged in ten years by the type of houses we build.”

In Cambridge, as a regular top 10 council house builder, we have delivered on the numbers. Now, through the Cam Standard and our strategic partnership, we are ensuring that the houses we leave behind will stand as a proud legacy of sustainable, inclusive, and fair municipal design for generations to come.

Would you like to write for Red Brick? Email rose.grayston@gmail.com to pitch your piece (c.600-900 words)