Ofgem News

The UK’s largest installer and operator of last mile multi-utility networks, GTC, and the UK’s pioneering manufacturer and installer of award-winning, British-made, ground source heat pumps, The Kensa Group, have joined forces to deliver a low-cost renewable heating and cooling solution for tens of thousands of new build homes a year – introducing the Networked Ground Source Heat Pump solution. This solution offers a clean alternative to gas, which is planned to be banned in n...

“This week the UK Government published its consultation response about the regulation of heat networks, confirming its intention to introduce new legislation in 2025 to enshrine consumer protections on pricing and performance," said John Marsh, the Chief Operating Officer (COO) at GTC. He adds, "At GTC we welcome regulation and consumer protection, not only does it further highlight the pivotal role of heat networks in the UK’s energy transformation drive, but it protects homeowners...

Fresh data on the government’s failing Boiler Upgrade Scheme confirms what the industry fears about the cause of slow growth in the heat pump market. Figures released by the energy regulator Ofgem, show a consistent but low number of applications for the £5000 BUS subsidy, compared to what the government expected. heat pump installers Pioneering energy trade body, the Energy and Utilities Alliance (EUA) believes these figures confirm their view that there are too few trained heat...

In just 10 days’ time, Glasgow’s SEC will be abuzz with renewable and low-carbon energy experts from home and overseas at the annual All-Energy and co-located Dcarbonise exhibition and conference. The Rt Hon Humza Yousaf MSP, First Minister of Scotland, will be speaking in the opening plenary session on Wednesday 10 May, and four of his Ministers will also be taking part in relevant sessions during the two-day event. Decarbonization “We are delighted by this l...

Viessmann has introduced the Vitovolt 300 solar PV system to the UK to make it easier for British home owners to cover as much of their electricity needs as possible through renewable energy. The powerful and efficient, quality-assured photovoltaic solution comes with a 15-year product guarantee and incorporates a modular package of accessories that fit together seamlessly. The result is a Viessmann ecosystem for tailoring to the needs of individual households, which can include sustainable he...

Baxi will be supplying its 100% hydrogen boilers for the H100 Fife Project, a world-first hydrogen-to-homes demonstration delivered through a partnership between gas distribution company - SGN and Fife Council in cooperation with industry regulator - Ofgem. Baxi attended an event hosted by SGN on 8 March to mark the beginning of construction of the H100 Fife hydrogen homes demonstration facility. Due to open to the public this summer, the new facility will comprise two hydrogen show homes where...

Ofgem has awarded up to £58m to five pioneering projects in the 2020 Network Innovation Competition to help support the transition to a net zero emissions economy at the lowest cost to consumers. Winning gas innovation projects include a world first trial of a 100% ‘green hydrogen’ network for 300 households in Fife to use hydrogen to cook and heat their homes instead of gas. Electricity projects which have secured funding are aimed at boosting the grid’s flexibility to...

Ofgem has confirmed a five-year investment package for the electricity distribution network companies to help deliver cheaper, cleaner, more reliable local grids at no extra cost to consumers.  renewable energy sources A key requirement of the plan will be for networks to focus the investment on supporting the move away from a high dependence on imported fossil fuels, towards using more homegrown, cleaner, cheaper, and secure sources of energy.   The potential of renewable ener...

Energy regulator Ofgem has issued two provisional orders to Delta Gas and Power Ltd (Delta), for failure to meet the standards set for them as a supplier. Delta is a non-domestic energy supplier, serving 1,690 business customers in the UK. The two provisional orders have been sent out for: failure to pay into the Feed-in Tariff (FIT) scheme, a programme which supports investment in and uptake of renewable electricity generation, and failure to provide requested information for Ofgem’s...

Ofgem is launching a new package of reforms designed to bolster consumer protection and ensure energy suppliers are more resilient to market shocks.  The proposals include the introduction of capital adequacy requirements which will help reduce the risk and cost of supplier failures. Renewable Obligation receipts Ofgem will also be requiring suppliers to ringfence Renewable Obligation receipts and monitoring closely the use of credit balances. The proposals look to protect current and fu...

Energy regulator Ofgem has published findings in the third of its series of ‘deep dives’ into how energy suppliers are helping customers in winter and beyond.  service standards Ofgem is committed to driving service standards up for consumers, and, the latest review, which looks specifically at how suppliers treat ‘Customers in a Vulnerable Situation’ has considered information submitted by 17 of the biggest domestic energy suppliers, detailing how the companies ar...

The energy regulator, Ofgem, has been challenged by a leading energy trade body to examine the real-world consequence of shifting homes from gas onto heat pumps. The Chief Executive Officer (CEO) of Energy and Utilities Alliance (EUA), Mike Foster, has written to the regulator - Jonathan Brearley, calling for a village-sized trial of decarbonizing homes using heat pumps. The trial will mirror that currently being considered for homes to be converted to hydrogen, another option being considered...

Ofgem requires suppliers to improve help for customers in payment difficulties, following review. The review found three suppliers were found to have severe weaknesses in how they support customers in payment difficulties, as part of Ofgem review; five suppliers were found as having some issues in the support they provide, and all of those identified have been asked to submit information to Ofgem, to set out how they will improve; and other key findings include companies being unable to identif...

Ofgem has announced its selection of Diamond Transmission Partners as the preferred bidder to own and operate the £1.2bn high voltage transmission connection link serving Hornsea 2 offshore wind farm. Diamond Transmission Partners, a consortium comprising Mitsubishi Corporation and HICL Infrastructure plc, was selected by Ofgem following a competitive Offshore Transmission Owners (OFTOs) bidding process to own and operate the asset for the next 24 years.   165-turbine Hornsea 2 wind...

Ofgem has appointed Octopus Energy to take on supplying UKEIH’s 3000 domestic customers. This follows a competitive process run by Ofgem to get the best deal possible for customers.  Funds that current and former domestic customers of the supplier have paid into their accounts will be protected, where they are in credit. Domestic customers will also be protected by the energy price cap with their new supplier.   Choosing another energy supplier  For existing UKEIH custome...

Ofgem has set out a landmark five-year vision to transform local energy grids to support the transition to a cleaner, affordable, home-grown low-carbon energy system, as part of its draft plans for the next electricity distribution price control (known as RIIO-ED2). Consumers will not see any additional costs as result of this investment as efficiency savings and reduced investor returns deliver the cash needed. Reliable electricity network Over the next five years, consumers will see: A m...

When the Domestic Renewable Heat Incentive (DRHI) scheme was launched in 2014, it was the first domestic scheme of its kind to support renewable heat generation for households. The scheme has grown since 2014, reaching 50,000 installations accredited during 2016, and the milestone of 100,000 accredited installations in February 2022. Now that the DRHI scheme has closed to new applicants Ofgem reflects on what this innovative scheme has achieved and as decarbonizing heat plays a key role in the...

People have been asking this question a lot more lately, and Ecotricity can completely understand why. It seems counterintuitive that the cost of clean green energy should be going up just because of the cost of polluting brown energy. Ecotricity's founder Dale Vince has addressed this in his recent podcast, here are two of the main reasons why they are in the place. Covering the cost of policy failure Ecotricity has recently been hit with additional costs of nearly &pou...

The UK Government has announced it has appointed Ofgem as the Heat Networks Regulator for Great Britain, in order to ensure consumers receive a fair price and reliable supply of heat, as the country makes the transition to net zero. The appointment was announced as part of the Government’s plan to further expand Great Britain’s network of low-carbon heating. Heat networks Jonathan Brearley, Chief Executive of Ofgem, said, “We welcome the Government’s announcement that...

Ofgem has launched a global initiative, together with the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), and the World Bank, to accelerate the energy transition to provide clean, secure, and affordable supplies to everyone. The world quickly needs to find cleaner ways to generate electricity, heat and cool homes, and power transport and industry to support global climate goals. Developing energy systems Energy regulators have a significant role to play i...

Bluegreen Energy Services Limited has announced they are ceasing to trade. Bluegreen Energy supplies around 5,900 domestic customers and a small number of non-domestic customers.   Under Ofgem’s safety net, customers’ energy supply will continue and funds that domestic customers have paid into their accounts will be protected, where they are in credit. Domestic customers will also be protected by the energy price cap when being switched to a new supplier. Things to do Custome...

Ofgem has appointed Shell Energy to take on supplying Green Supplier Limited’s (‘Green’) approximately 255,000 domestic customers, and a small number of non-domestic customers. This follows a competitive process run by Ofgem to get the best deal possible for customers. Outstanding credit balances, including money owed to both existing and former domestic customers of Green Supplier Limited, will also be honored. Domestic customers will also be protected by...

Ofgem has appointed Octopus Energy to take on supplying Avro Energy’s approximately 580,000 domestic customers. This follows a competitive process run by Ofgem to get the best deal possible for customers. Outstanding credit balances, including money owed to both existing and former domestic customers of Avro Energy, will also be honored. Domestic customers will also be protected by the energy price cap with their new supplier. continuous energy supplies For existing&...

Ofgem has appointed EDF to take on supplying Utility Point’s approximately 220,000 domestic customers. This follows a competitive process run by Ofgem to get the best deal possible for customers. EDF is offering customers a competitive tariff. Outstanding credit balances, including money owed to both existing and former customers of Utility Point, will also be honored. For existing Utility Point customers, energy supplies will continue as normal as they switch over to EDF on 18 Septe...

EDF has stepped in to help customers left without a supplier after Utility Point ceased trading on 14 September 2021. EDF will take on approximately 220,000 Utility Point domestic customers. EDF has agreed to protect any money a customer may be owed and existing customers’ credit on their accounts will be transferred to their new account with EDF. Energy supply Customers will be matched to standard variable prices to provide a guaranteed rate through winter and protection against the ex...

Ofgem has launched an investigation into Community Energy Scheme UK’s sales and customer service practices. Ofgem’s investigation is in relation to sales practices, and solar panel installations, for social housing tenants in Stoke-on-Trent. Investigation details  The investigation will examine whether the company breached consumer protection rules, including potential breaches of the Consumer Protection from Unfair Trading Regulations 2008 and the Consumer Contracts (Informa...

Ofgem is issuing Symbio Energy with a provisional order, which compels it to pay around £450,000 in full for a government environmental scheme. The Feed In Tariff (FIT) scheme (1), which is administered by Ofgem, provides payments to owners of small-scale renewable energy generators, and is funded through compulsory levies on suppliers (2). Any supplier that fails to pay its payment by the deadline of 11 August 2021 is in breach of the rules of its supply license (3). Symbio fails to ma...

The energy price cap will increase from October 1, 2021 for the 15 million customers Ofgem protects. Those on default tariffs paying by direct debit will see an increase of £139 from £1,138 to £1277. Prepayment customers will see an increase of £153 from £1,156 to £1309. This increase is driven by a rise of over 50% in energy costs over the last six months with gas prices hitting a record high, as the world emerges from the COVID-19 induced lockdown. Surging...

Microbusinesses have a vital role in the United Kingdom (UK) economy and the energy retail market, accounting for 96% of all UK businesses (5.7 million), 33% of UK employment and a significant proportion of energy expenditure (£3.4 billion in 2020). They are usually enterprises employing up to 10 people. When buying energy, most microbusinesses rely entirely on electricity as a source of power and 62% think of energy as a significant cost to their business. Almost all use a broker to get...

Ofgem, the energy regulator, has set out final proposals to help millions of micro business customers get a better energy deal. Energy brokers help busy micro businesses to compare the market and find a better deal on their energy. But Ofgem found a minority of brokers engage in poor practices with opaque fees for brokerage services. In one case, 50% of the total contract cost (around £24,000) comprised broker commission fees that the consumer was not made aware of pre-contract.  Su...