District Heating: Prices

(asked on 16th March 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, what recent estimate he has made of the likely level of forthcoming price rises for heat network customers; and if he will make a statement.


Answered by
Greg Hands Portrait
Greg Hands
This question was answered on 24th March 2022

Price increases for heat network customers vary depending on the type and owner of the network. Larger district heat networks are able to use their market size to purchase energy at scale and secure cheaper prices.

Whilst the Government does not yet have robust estimates of price increases for heat network consumers, those supplied by district heat networks are seeing price increases broadly in line with increases being seen by customers under the Retail Price Cap. The Government is seeing larger price increases for heat network customers on smaller communal networks where there are greater difficulties in purchasing at scale. These types of networks serve approximately 80,000 domestic consumers (18% of all domestic heat network consumers). The Government remains committed to legislating within this parliament to regulate the heat networks sector.

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