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District Heating: Prices

Question for Department for Business, Energy and Industrial Strategy

UIN 141192, tabled on 16 March 2022

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 on

24 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.

Interests declared
The Member has declared that they have interests which may be relevant to the subject matter of this question.