Heat Networks: Price Caps
The question
To ask the Secretary of State for Energy Security and Net Zero, whether his Department is considering regulating the non-domestic gas and electricity tariffs charged to heat network operators, in order to reduce costs passed on to their domestic consumers.
Answered by Martin McCluskey
The Department has provided the heat network regulator, Ofgem, with broad powers relating to heat network price regulation. These include powers to investigate and intervene where heat network prices charged to consumers are disproportionate or unfair.
Ofgem has published authorisation conditions and issued guidance on the application of their fair pricing rules.
Heat network suppliers and operators have until January 2027 to register with Ofgem and supply data, including information about pricing. Ofgem will use this to further inform their approach to pricing rules and guidance.
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