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

To ask the Secretary of State for Business, Energy and Industrial Strategy, how many and what proportion of tenants on heat networks experience (a) per kWh tariffs and (b) standing charges for heat that are more than 1.5 times the capped price for gas.

It is challenging to directly compare gas and heat network bills. This is because heat network bills tend to include additional system costs such as system maintenance, whereas these additional costs are typically paid by gas consumers through other means.

Whilst there is currently no requirement for heat networks owners or operators to formally report details on their pricing practices, studies have been carried out which provide useful insight into heat network pricing from a sample of the market, namely the 2017 Heat Networks Consumer Survey (HNCS) and the 2018 CMA heat networks market study (CMA).

Government is committed to implementing the Heat Networks Market Framework, which will introduce price transparency requirements on heat network operators. The future heat networks regulator will also have powers to protect consumers from disproportionately high pricing and monopoly power.