District Heating

District heating is a system that provides heat to multiple buildings or homes from a central source. It is designed to efficiently deliver heat from a centralised plant or facility, which can be powered by various sources such as natural gas, biomass, or waste heat from industrial processes. The heat is then distributed through a network of insulated pipes to individual homes or buildings connected to the system. 

In social housing, they are often used in supported and sheltered housing with shared facilities, as well as in blocks of flats. River Clyde Homes mainly uses Biomass in our district heating systems as they form an important part of our plan to reduce carbon and minimise heating bills for customers.

The benefits of District Heating Networks

District heating networks often offer a more reliable heat supply, as they are less susceptible to individual equipment failures compared to individual heating systems such as gas boilers. 

District heating has many benefits, including reducing greenhouse gas emissions, supporting the local economy, reducing costs for customers, and improving energy efficiency. It is a low-carbon solution that can provide a reliable and secure heat supply while reducing the risk of fuel poverty and improving air quality.

The benefits of Biomass Heating 

Biomass is a renewable energy source, generated from burning wood, plants and other organic matter, such as manure or household waste. It releases carbon dioxide when burned, but less than fossil fuels. Biomass heating systems burn wood pellets, chips, or logs and is the largest form of renewable heating throughout Europe.

OFGEM Regulation - January 2026

From January 2026, Ofgem will begin regulating heat networks. This is an important step towards stronger protections and better outcomes for consumers. These new regulations will establish the fundamental standards that every heat network customer deserves and create a fair, reliable system that works for everyone.

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River Clyde Homes is fully complying with the formal regulation of district heat networks by Ofgem which will ensure that our operational standards meet the highest national benchmarks for fairness, transparency, and consumer protection.

The energy landscape in 2026 remains challenging. While most UK households are protected by the Ofgem Energy Price Cap (set at £1,758 per year for a typical household as of January 2026), district heating users are in a different position because their energy is purchased on commercial contracts. 

River Clyde Homes currently subsidises district heating costs, ensuring costs remain significantly lower than the standard price cap.

For a tenant, a landlord-subsidised district heating scheme often results in a lower "standing charge" and more predictable monthly outgoings than a standard variable tariff under the price cap. This is particularly vital for RCH Customers on heating networks, who would otherwise be exposed to the volatile commercial energy market.

As stated, it is important to note that as of January 2026, new regulations are coming into force. Ofgem is gaining powers to investigate "disproportionate or unfair" pricing in heat networks.

Information can be found by using the webchat function at energyadvice.scot, or call 0808 196 8660.