Almost 1 Million Heat‑Network Families Headed for an Energy Crisis

Heat‑Net Shock: The Real Cost of Cozy Heat

Picture this: you turn your thermostat up, expecting a \normal bill, but your bank account gets a hit by 700 %. That’s the reality for some families who live in heat networks—electric parcels that share a single source with several other homes. Social Market Foundation warns that many more are headed for the same shock wave unless the government takes a speedy pull‑up.

How Many Are in the Heat‑Net Club?

About 1 in 25 households in the country ride these shared energy currents.
In social housing this jumps to roughly 1 in 12.
Official 2014 data pegged the number at 480,000 homes, but a fresh analysis using newer experimentation sees that figure climb to an eye‑opening 900,000.

Three Painful Problems, One Price‑Driven Future

High upkeep – Poor energy efficiency leaves operators sweating and homeowners carrying the bill.
No meter, no fairness – With no meter in place, households are charged the same based on building use, not how much they actually fire up.
Regulation loopholes – Ofgem doesn’t step in because heat‑net costs are shackled under “housing service charges,” which makes them invisible to consumer protections.

Energy Crisis Amplification

Since the pandemic hit, those on heat networks have missed out on the Government’s Energy Price Guarantee (EPG)—the £2,500 cap for households. While typical households got a shield, heat‑net users still fell into the business‑sale category, exposing them to staggering price swings.

Until recently, many were modestly shielded because net operators locked in energy rates for a year or two. Now those contracts are unboxing, and households face bills that could double or even jump 500‑700 %.

The Fix‑It Plan (Heat‑Net Ready)

Will Damazer, the report author, lays out a roadmap that promises fairer, greener outcomes:

Upgrade the bill‑support scheme – Tied to domestic energy costs, with a built‑in service‑charge cap.
Speed up metering – Drop exemptions, crank up grant funding, and rattle the community into checking their actual use.
Regulate the nets – Order Ofgem to start oversight by April 2024, with incentives for better efficiency.
Retrench the outdated – Force operators to do feasibility studies and give households funding to move from malfunctioning nets to heat pumps.

“Heat networks are indisputably a key to reaching net zero,” says Damazer, “but they’re not living up to their potential. The ones most vulnerable are stuck with higher prices, lax regulation, and less control. Rapidly moving to metered systems is a vital first step to cut bills and cut carbon.”