District Heating: Price Caps

(asked on 1st December 2022) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department has plans to reform the Default Tariff Act to extend Ofgem's regulatory powers to ensure that price caps apply to commercial contracts bought by communal heating systems.


Answered by
Graham Stuart Portrait
Graham Stuart
This question was answered on 22nd December 2022

There are currently no plans to reform the existing Default Tariff Act for heat networks. The Government has included powers within the Energy Bill, introduced to Parliament in July this year, which would enable price caps to be set in the heat networks sector. However, the Government has said it will proceed cautiously in setting price caps to avoid undermining investment in the sector and putting at risk the supply of heat to customers.

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