District and communal heating schemes supply heat and hot water, generated in a central location, to a number of residences. This may take the form of a boiler serving a number of residences within an individual building - such as a tower block, or several buildings connected to a larger network.

At present, district heating is not regulated in Scotland, so consumers do not benefit from the same level of consumer protections as those who rely on gas or electricity to heat their homes. While the district heating market is currently small, it is expected that is will expand significantly in coming years.

A new report published by CAS’s Consumer Futures Unit (CFU) on the issue, ‘Different Rules for Different Fuels’, revealed wide support – from both suppliers and other stakeholders – for greater consumer protection measures, including regulation.

It suggested that the Scottish Government could introduce statutory consumer protection measures through a licence for the supply of district heat. These include measures around billing, metering, standards of service, access to redress and pricing.

The report recommends that the Scottish Government consider:

CFU energy spokesman, Craig Salter, said: “The findings of this report have been illuminating, and while it shows us that there are many examples of good practice from existing district heating suppliers, there is a clear need for greater and more consistent consumer protection for those using district heating.

“District heating has the potential to play an important and positive role in eliminating fuel poverty, but in order for this to happen, consistent consumer protections must be in place.

“We hope that the findings of this project, and the recommendations that have come out of it, will help to ensure that an expansion in the use of district heating in Scotland has the interests of those using it at its heart, and will help to allow it to play a meaningful and pro-active role in alleviating fuel poverty.”