The much-anticipated heat networks regulation, outlined in the Government’s Energy Security Bill to be managed by Ofgem, is expected to come into force next year. Andy Wilkinson, Managing Director at WilSon Energy, explains the aims of this new regulation, what benefits it will deliver to consumers and he believes it is an essential move for the industry.

What are heat networks?

Heat networks supply heat and hot water from a central source to consumers via a network of pipes and are known as either a communal or a district heat network.

Communal heat networks are the most common form of heat network in the UK, providing heat and hot water to multiple premises and customers within a single building. District heat networks supply heat to more than one building, often covering a large area and supplying several buildings.

Currently, there are over 14,000 heat networks in the UK, providing heating and hot water to approximately 480,000 consumers[1].

What are the main benefits of heat networks?

Heat networks are one of the most cost-effective ways of decarbonising heating in built-up areas and will play a crucial part in helping the UK reach its net-zero targets.

More importantly, as well as supporting regeneration, they offer a fair and competitive price to consumers that will help reduce the cost of living.

Why is the regulation heat network regulation needed?

To date, the sector has remained unregulated, with no sector-specific protections for heat network consumers. In 2018, the Competition and Markets Authority (CMA) carried out a sector study finding that while, on average, heat networks deliver a comparable service to individual heating systems, there was a sufficient minority of consumers who receive significantly worse outcomes, such as high prices and frequent outages.

In addition, data from the Climate Change Committee estimated that around 18% of UK heat could come from heat networks by 2050 to support cost-effective delivery of carbon targets (up from around 2% currently).

As a result of these findings, Ofgem and the Department for Energy Security and Net Zero, have been shaping a new regulatory framework based on consumer protection requirements and supporting decarbonisation aims that heat network operators and suppliers must comply with.

How will this regulation benefit consumers?

These measures will regulate the sector and Ofgem will help to ensure consumers get a fair, competitive and proficient service.

The regulation includes powers to introduce an authorisation regime so organisations supplying heat through a heat network or operating a heat network will be regulated. This means that, ultimately, operators will be accountable for the way they work.

Ofgem will also have the powers to investigate and intervene on networks where prices for consumers seem disproportionate compared with heat networks with similar characteristics, or if prices are significantly higher than those consumers would expect to pay if they were served by an alternative and comparable heating system.

In summary, the intention is that these conditions and regulation will provide fairer pricing and transparent information for consumers, a higher quality service and minimum technical standards for heating provision.

How will the regulation support Climate Change?

The largest share of CO₂ emissions from UK buildings comes from space heating and water heating, so driving energy efficiency in this area is an important part of the UK’s decarbonisation goals.

These new measures will support the decarbonisation of the sector and energy efficiency improvements by promoting technical standards and introducing carbon emissions limits on heat networks.

The growth and decarbonisation of the market will consequently make a vital contribution to government’s ambitious net zero ambition, and the role of heat networks is set to expand significantly.

What are the implications for non-compliance?

Some of the proposals under consideration include giving Ofgem powers to issue fines for poor levels of service. As regulator, Ofgem could also have the ability to order operators pay compensation in cases where there is a supply outage.

There are also proposed protections for vulnerable customers, such as elderly occupants or users with specific health conditions, by ensuring improved awareness among operators about individual users connected to the network.

Why is WilSon Energy in favour of Ofgem’s heat networks regulation?
As a leading supplier of fully integrated heating systems, and a heat network specialist, we are proud to set the industry standard by providing innovative and cost-effective solutions across the UK. We work with operators who are equally committed to delivering the most efficient heating solutions alongside the most robust data collection systems, that ensure we remain accountable for the service we deliver.

WilSon Energy has been providing billing and bureau services, together with, Pay As You Go (PAYG) Management services for heat networks and private multi-utility networks since 2009. We assist our clients by ensuring our services are delivered to meet the Heat Network (Metering & Billing) Regulations 2014 and in accordance with the Heat Trust.

We are compliant and make ourselves accountable by following best practice so our clients benefit from a fair and transparent service that benefits the wider community and environment.

To date, the market has been relatively unregulated, which has left many guidelines open to interpretation negatively impacting the customer. While we have always followed the framework set out by trusted associations such as Heat Trust, these new regulations will ensure a fair and level playing field for all.

What was the consultation period?

Feedback on the proposals being jointly conducted with Ofgem, were being sought until 27 October.

When will the regulations be introduced?

The new heat networks regulation is anticipated to come into force as early as early in 2024.

Following a period of being automatically authorised to operate, all heat networks will be required to notify to Ofgem to maintain their authorised status.

Government advice is that all heat networks prepare for regulation now by following existing good practice, such as that set out by the Heat Trust and the industry’s Code of Practice.

For more information on how we WilSon Energy can meet your energy needs, visit: https://wilsonenergy.co.uk/ or call us today on 01636 857 240.

[1] https://www.gov.uk/government/publications/energy-security-bill-factsheets/energy-security-bill-factsheet-heat-networks-regulation-and-zoning

Midlands-based WilSon Energy, a leading provider of fully integrated Heating, Metering, Pre-Payment and Billing & Bureau Services for residential homes and commercial developments, has undertaken the first phase of a smart meter installation at a former factory in Bradford.

In phase one, WilSon Energy has been appointed to install 150 smart meters on a private electricity network, as part of a complete renovation of the one-time Hallmark card factory, which is undergoing a major refurbishment into 380 residential units, to be known as The Printworks.

The developers delivering the scheme were experiencing issues with a lack of transparency around metering information, billing details and were not able to access charging and consumption data for electrical energy usage. Many tenants had previously complained about incorrect bills, queried energy usage and the management team were finding it difficult to manage billing.

As well as installing the private energy network and smart meters, the firm will support the landlord with a complete meter monitoring, billing and bureau service and a customer excellence team.

Andy Wilkinson, CEO at WilSon Energy, said: “WilSon Energy stepped in to offer support and find a solution to the challenges the property developers were facing in 2022. By putting in a private electricity network with dedicated smart meters, which provides access to an online portal with real time data, we can put landlords and tenants in control of their energy supplies and help with invoicing.

“Our dedicated billing and bureau team is on hand to support landlords and property managers with data to inform decision making, while the smart meter and Pay as You Go system offers tenants multiple ways to pay and top up credit through a committed customer service team and resident portal.”

A spokesperson from the property management company added: “With the previous system, deployed by a former contractor, we were not receiving management data, had issues with incorrect billing and lack of control over the energy supplier. Residents were understandably unhappy about receiving incorrect or sporadic bills. With support from WilSon Energy we are in a position to roll out the latest technology to residents which will provide a myriad of benefits, including accurate readings and a more cost-effective solution for utility bill management, ultimately helping our tenants to monitor and manage their energy usage.”

The first phase of installation is now complete, with the remaining dwellings in phase two to be fitted in mid 2023 when rest of renovations are due for completion.

For more information about WilSon Energy’s private energy networks and smart metering services, visit: https://wilsonenergy.co.uk/

 

Midlands-based WilSon Energy, a leading provider of fully integrated heating, metering, pre-payment, billing and bureau services for residential homes and commercial developments, has announced the expansion of its team with six new appointments.

The appointments follow a period of sustained growth for the Newark-based business, leading to a proactive recruitment drive to meet customer demand.

In addition to several new client wins, WilSon Energy has seen increased demand for its support with billing and bureau management services. Earlier this year, the firm also secured a large-scale Heating Interface Unit (HIU) service and maintenance contract for a major utility provider.

The six new recruits will be working across the whole business.

Joining the customer support team is Adam Waby, who returns to the business, focusing on supporting our field engineers and internal technical support, as well as Emma Tomlinson. Emma also previously worked at WilSon around five years ago in the billing and bureau department has now returned to the business with renewed enthusiasm after getting married and having two children.

Sami Zaqiri has been recruited to the role of field service engineer. Having worked extensively has an HIU service engineer for several years, Sami has in-depth sector experience as well as general plumbing and heating knowledge. James Hawley has also joined the business as a field service engineer and similarly to Sami, has also worked in this area extensively, after a career in the military.

Shannon Haywood has joined the post pay billing and bureau team again bringing with her a wealth of customer service skills. Chris Rathore has taken up a sales role and is responsible for new billing and bureau and pre-payment contracts. In addition to this he works extensively with new utility connections, fiscal meters and energy procurement.

Finally, Steve Burn moves to head of mechanical and electrical project management.  For the last couple of years, he has worked successfully delivering a number of multi-utility projects in the residential sector.

Andy Wilkinson, CEO at WilSon Energy, said: “WilSon Energy has seen significant growth in the last 12 months with new contract wins in Heat Network and District Heating schemes across a wide portfolio of residential and commercial developments. We have also seen growth in our Energy Billing and Bureau solutions and these appointments are testament to that success and our proactive approach to meeting customer demand for our extensive range of services.

“We are pleased to bring these new staff members on board at an exciting time for the business and wish them a long and rewarding career with us.”

For more information about WilSon Energy and its integrated heating and billing solutions, visit: https://wilsonenergy.co.uk/billing-and-bureau-services/.

Newark-based WilSon Energy is proud to confirm its sponsorship of local double board darts team RHP Darts of Hazzard.

The agreement will see WilSon Energy sponsor the team’s shirts and a range of equipment for the next double board darts season, which started last month. The new shirts will also promote the team’s familiar catchphrase, “Nobody likes to see that”, which is often expressed when a dart doesn’t go the team’s way.

Having originated in France, the traditional game of darts, often played in pubs, has morphed into various UK regional forms over the years. While many have died out over time, one form that has survived, is actively used in the Newark-Upon-Trent pub league, where the game is played on a doubles dart board of the Lincoln format.

In contrast to a traditional board, a double dart board has no different coloured segments or trebles and the bullseye doesn’t have the twenty-five-point surround.

The RHP Darts of Hazzard, whose home turf is the RHP Sports and Social Club, are regular competitors in the Newark and District Double Darts League, taking on other regional teams in a series of seasonal fixtures.

Andy Wilkinson, CEO at WilSon Energy, said: “We’re really pleased to be supporting the RHP Darts of Hazzard with this latest sponsorship deal.

“As our local team, we’re fully behind them and are looking forward to cheering them on into this double board darts season and beyond.

A spokesperson for RHP Darts of Hazzard, said: “It’s great to have WilSon Energy’s backing as we start our summer season campaign.

“We’re proud of our kit and this local support is so helpful as we aim to move up the league table. Watch this space!”

You can follow the team’s progress on Facebook https://www.facebook.com/newarkdarts

WilSon Energy acknowledges the Heat Trust, the consumer champion for heat networks, in it’s call for all operators to join its scheme to get regulation ready. Heat Trust, launched in November 2015 is an independent, non-profit consumer champion for heat networks that holds the industry to account for the benefit of everyone involved.

Andy Wilkinson, CEO of WilSon Energy, commented. “Although only part of the overall heat network scheme relates to billing & bureau services that we carry out on behalf of our clients, this is delivered in accordance with all current industry regulations, so we also strongly recommend to them that they participate in the Heat Trust’s voluntary scheme for the benefit of their own clients. We have created a handy guide that gives advice on how we can help clients meet these standards throughout the process”.

Mebs Laljee, Business Development Manager of WilSon Energy adds, “Our billing & bureau services department is growing rapidly. We have recently introduced some significant changes in our operations, this follows major investment by the company in its billing platform and customer portal. We have secured another two heat network billing contracts this week, where clients have not renewed their existing contracts and have switched over from two other competitors”.

To all property managers or property owners that have identified a requirement for Metering and Billing, please get in touch for free impartial advice on how WilSon Energy’s technology and end to end billing solution can help and ensure that you are regulatory compliant before the end of September 2022 deadline.