Episode 2: Fair Pricing for Felix

Behind every new regulation is a real reason.

To help explain why these changes are being introduced, we’ve created a series of fictional residents whose stories reflect situations many people can relate to.

Through each story, we’ll show how the new regulations are designed to provide greater protection, fairer outcomes and better support for residents.

Let’s continue the story with Felix.

Felix has lived in his apartment for three years.

His heating works well, but every time his bill arrives, he asks himself the same question.

“How do I know this is actually a fair price?”

He can’t compare suppliers. He can’t shop around.

So without knowing how his charges are calculated, it can be difficult to feel confident he’s getting good value.

If you’ve ever wondered the same thing, you’re not alone.

That’s exactly why new fair pricing regulations are being introduced.

Felix’s Needs

Felix wants to know he’s paying a fair price.

Everyone should have confidence that they’re paying a reasonable price.

The new regulations are designed to make sure charges are fair.

Felix wants charges based on real costs.

Your charges should reflect the actual cost of providing your heating and hot water, rather than being set arbitrarily.

As you can’t change your heat supplier, the regulations ensure that charges reflect real costs by assessing them in a fairness test that evaluates costs against external benchmarks, similar networks and historical pricing.

Felix wants efficient heat networks.

An efficient heat network benefits everyone.

When systems are well maintained and running efficiently, they can reduce waste and help keep costs under control over the long term.

Felix wants transparency.

Understanding your bill shouldn’t be a guessing game.

The new regulations encourage clearer information about how charges are calculated, so you have a better understanding of what you’re paying for.

How we’re supporting you

The new regulations are designed to make heat network pricing fairer and more transparent. That’s something we’ve always believed in too.

When we calculate and review your charges, we aim to make sure they are:

- Fair – Your charges reflect the genuine costs of supplying heating and hot water to your building.
- Clear – We explain how your charges are made up and provide information in ways that are easy to access and understand.
- Appropriate – You only pay for your fair share of the legitimate costs of operating your heat network.
- Consistent – We apply the same approach fairly across similar developments, unless there’s a valid reason for differences.
- Sustainable – We help ensure your heat network can continue to operate safely and reliably, while keeping charges proportionate and justified.

What this means for you

For Felix, fair pricing isn’t just about paying less.

It’s about knowing that the price he pays is fair, based on real costs and backed by clear rules. It’s about having confidence that his heat network is being managed fairly and transparently.

That’s what the new regulations are designed to achieve and it’s the approach we’re committed to every day.

Want to know more about the regulations?

Read the Heat Network Compliance Companion Playbook.

It’s the heat supplier’s guide to:

• What’s changing
• What needs to happen to ensure Ofgem compliance
• How to evidence it
• Templates, checklists, timelines and practical examples

Read the Playbook

Residents and Regulations Series: Fair Pricing and Felix