HUNDREDS of residents in Inverclyde forced to put up with repeated breakdowns from biomass boilers and huge rises in bills will finally benefit from greater protection in the new year.
In his new role as minister for energy consumers, local MP Martin McCluskey says regulations taking effect in January will end a system of oversight which he describes as ‘a bit of a Wild West’.
People living in Greenock’s Broomhill have been plagued for years by problems with a controversial biomass district heating system in the area, operated by River Clyde Homes, as well as significant price hikes of up to 115 per cent.
The new regulations, which come into effect in January under energy regulator Ofgem, will see rules brought in around performance and pricing.
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Mr McCluskey’s department is also looking at introducing technical standards which all district heating systems must comply with.
The MP said: “I am well aware of the problems with biomass boilers from my time as a councillor.
“Until now, consumers on heating networks have not had the same protections as those connected to traditional gas and electricity networks.
“There have been concerns around significant rises in energy bills and the continuity of supply. Until now it has not been properly regulated.
Martin McCluskey says regulation of district heating systems should bring about improvements for customers in places like Broomhill. (Image: George Munro)
“It has been a problem echoed across the country, and has been a bit of a ‘Wild West’ with regard to regulation.
“I am now the minister in charge of heating systems and in January that will change when Ofgem takes over as regulator.”
Earlier this year Advice Direct Scotland was appointed as the official consumer advice provider, offering support to heating network customers around billing, affordablility and energy efficiency.
Up to 500 homes were connected to River Clyde Homes’ biomass district heating system in Broomhill, while community systems operate in a number of high rise blocks in Inverclyde.
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But the Broomhill system has been plagued by breakdowns since then, typically when there is a high demand for heating – with some residents left on occasion without heating or hot water for days and a time and forced to use portable heaters.
Broomhill residents’ anger at the reliability of the system was heightened nearly two years ago when RCH announced bills would rise by up to 115 per cent and introduced standing charges.
Mr McCluskey added: “Ofgem will have significant powers around investigations.
“One of the first things they will do will be to examine pricing and put rules in place, because up till now there has been no regulation around pricing, with operators able to increase charges and introduce standards charges as they like.”
Martin McCluskey promises change in Broomhill (Image: George Munro)
There have also been issues with residents being able to credit their accounts.
A River Clyde Homes spokesperson said: “We welcome the regulation of heat networks by Ofgem.
“Following successful consultation, we have adopted a new Heat Networks and Service Standards Policy which aligns directly with Ofgem’s recommendations.
“Further, we are modernising our metering equipment to deliver clearer usage and billing transparency for customers. A new supplier will manage this change across the majority of our heat networks.”
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