These are the Terms of Reference approved by the Board, in line with the Articles of Association of the Company (herein “The Energy Ombudsman”).

Interpretation

1.1 The definitions, below, apply to both this Annex and the Terms of Reference in relation to complaints brought to the Energy Ombudsman against Participating Companies:

“Authorised” in relation to any person, business, or regulated activity, means:

(a) authorised by a heat network authorisation granted under regulation 16 of the Regulations;

(b) authorised by a temporary authorisation granted under regulation 17 of the Regulations; or

(c) where appropriate, to be treated as authorised by a heat network authorisation under regulation 27 of the Regulations.

“Award” means the compensation awarded to the Complainant. The Award shall be limited to £10,000 (inclusive of VAT, if any) per complaint for Domestic consumers. The Award shall be limited to £20,000 for Micro Business Consumers.

“Customer” means a heat network consumer in relation to heating, cooling or hot water supplied by means of a relevant heat network, including a person who takes a supply of heating, cooling or hot water from one relevant heat network for the purpose of supplying another for any service falling within the jurisdiction of the Ombudsman and The Energy Ombudsman.

“Domestic consumer” means a heat network consumer who takes a supply of heating, cooling or hot water at a Domestic Premises

“Micro Business” will be defined as a business that meets either of the following two criteria: (1) it consumes less than 247,000 kWh of heat per year; or (2) it has less than 10 full-time employees and an annual turnover of less than £2 million;

“Heat Network Authorised Supplier” means any person who is Authorised to carry out the regulated activity of supplying heating, cooling or hot water to heat network consumers by means of a relevant heat network;

“Heat Trust” means an independent, non-profit consumer champion for heat networks;

“Heat Trust Member” means a Heat Network Authorised Supplier who is a member of Heat Trust;

Heat Trust Scheme Rules” means the standards set out by Heat Trust that apply to all Heat Trust Members;

“Participating Company” means a Heat Network Authorised Supplier admitted into The Energy Ombudsman in accordance with the Terms of Reference, the Membership Rules for Participating Companies and the present Annex and, as the context so requires, each and/or any of its subsidiary undertakings from time to time which has put its relevant services under the jurisdiction of the Ombudsman and The Energy Ombudsman;

“Regulation” means the Heat Network (Market Framework) Regulations 2025;

2. Eligibility to become a Participating Company in The Energy Ombudsman

2.1 Companies that are obliged to become Participating Companies in The Energy Ombudsman are Authorised companies that carry on the regulated activity of supplying heating, cooling or hot water to heat network consumers by means of a relevant heat network.

3. Services

3.1 The services provided by Participating Companies of The Energy Ombudsman which will be covered by, and fall within the jurisdiction of, the Ombudsman and the Energy Ombudsman are;

(a) the services associated with the metering and billing of customers for heating, cooling or hot water

(b) the provision of heat energy products and services; and

(c) services relating to certain duties set out in the Energy Bill Relief Scheme Pass-Through Requirement (Heat Suppliers) (England and Wales and Scotland) Regulations 2022, namely that the heat supplier:

notified the consumer that it has benefited from the EBRS;
notified the consumer of how it will pass through the benefit from the EBRS;
passed on the scheme benefit within the timeframe required by the Regulations;
otherwise complied with the requirements to pass through the EBRS benefit

(d) services relating to certain duties set out in the Energy Bills Discount Scheme Pass-Through Requirement (Heat Suppliers) Regulations 2023, namely that the heat supplier:

Notified the consumer that it has benefited from the EBDS;
notified the consumer of how or when it will pass on the benefit of the higher heat network EBDS discount rate;
passed on the EBDS scheme benefit within the timeframe required by the Regulations;
otherwise complied with the requirements to pass through the EBDS benefit.

4. Complainants

4.1 Further to, and in addition to, the provisions of paragraphs 3 and 6 of the Terms of Reference, the Ombudsman and The Energy Ombudsman shall only have jurisdiction in relation to a complaint against a Participating Company if the person making the complaint;

(a) was, at the time the subject matter of the complaint arose, a customer with an effective contract or deemed contract with a Participating Company; or

(b) is acting on behalf, and with the consent, of any person falling within the scope of paragraph 4.1 (a) above.

5. Limits on the Ombudsman’s powers

5.1 The Ombudsman shall not accept a complaint about a matter;

(a) which concerns or relates to pipework, conduit, cabling or wiring which is not the responsibility of a Participating Company of the Energy Ombudsman;

(b) where a heat network dispute concerns a tenant or leaseholder of a social landlord, is part of a wider housing issue, and is against the landlord;

(c) of which the complainant had noticed before the date when the relevant Participating Company was Authorised and became a Participating Company of The Energy Ombudsman unless the Participating Company consents otherwise or the Participating Company was a Heat Trust Member prior to the date of Authorisation and the matter relates to the Heat Trust Scheme Rules or the complaint relates to EBRS or EBDS;

Terms of reference - Heat Network Suppliers