Law firm considers class action over heat networks
A law firm is looking into whether residents who pay excessive fuel bills because their flats are part of heat networks could have grounds for a legal challenge.
Heat networks, which often operate in large blocks of flats, are not protected by the energy price cap set by regulator Ofgem, meaning that customers have been left more vulnerable to the volatility in pricing over the past year.
Last April, consumer protection body Heat Trust found that some residents who are part of heat networks were facing price rises of 700%.
This led to London mayor Sadiq Khan calling on the government to protect the estimated 400,000 Londoners with uncapped bills, pointing out that the majority of this group were lower-income tenants.
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In October, the government said these residents would be protected from energy bill rises, although this was subject to a quiet U-turn a month later.
Now, lawyers at Leigh Day have begun research into how widespread excessive charges are, and whether the quality and efficiency of heat networks lead to excessive heat loss, leaving customers paying more for less.
According to Leigh Day, half a million people in the UK were receiving energy via heat networks in 2016, with the number expected to have grown since.
Associate solicitor Leo Gonzalez, who is leading what could become a group claim for Leigh Day, said there could be a legal case under both breach of contract and competition law.
In a statement on the firm’s website, Mr Gonzalez said: “It is concerning to read reports of enormous price increases hitting heat network consumers, often already overstretched by the cost of living crisis. I believe there are legal avenues that could be explored to offer some means of redress to these consumers who feel unprotected and powerless in this unregulated sector.”
The news follows the revelation that Islington Council is switching off communal heat networks covering thousands of homes for 11 hours a day to reduce energy bills.
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