Britain's energy regulator, Ofgem, must urgently consider
implementing price protections for heat network customers, with
continued energy price increases due to the conflict in the
Middle East
Ofgem was appointed as the regulator for heat networks in January
2026.[1]
The London Assembly Environment Committee has
today published its report - Zoning: The
Heat Networks Puzzle – calling for stronger price
protections for Londoners on heat networks.
The Committee investigation found that due to
planning rules in new developments, a significant number of
Londoners on heat networks in these new builds are in social
housing.
Heating homes currently accounts for around 18 per cent of the
UK's climate emissions.[2]
London Plan policy has promoted heat networks, which feature
significantly in the Mayor's strategy for achieving net zero
emissions of greenhouse gases by 2030. The Mayor's preferred
‘pathway' is based on 460,000 heat network connections by
2030,[3] and so the
Committee looked in detail at how to get things right.
The Committee heard that heat network customers have often
struggled to understand what they are paying for, how prices are
calculated, and whether charges are fair.
The Committee is now calling for:
- The Greater London Authority (GLA) to take the lead in
ensuring price protection for Londoners and establish a set of
Fair Pricing Principles for all heat networks in London.
- Where existing under-performing legacy heat networks in
social housing are being upgraded, there should be price
protection for leaseholders in terms of capital costs.
- The GLA should work with Ofgem and the Department of Energy
Security & Net Zero (DESNZ) to develop a best practice guide,
similar to an EPC rating that gives a short, clear introduction
to heat networks, their efficiency levels, and explains heat
network charges.
AM, Chair
of the London Assembly Environment Committee while the
investigation took place said:
“We are deeply concerned that some Londoners have experienced
considerable harms as a result of higher heating
prices.
“For too many in London, their experience of heat networks
has not been satisfactory. They are getting a bad deal, and one
from which they cannot escape.
“For some, this is a very steep personal price to pay for a
lower carbon heating network.
“Tackling climate change is something we support, but we must
ensure customers are protected from volatile price increases,
particularly with the ongoing crisis in the Middle
East.
“We are urging Ofgem, as the regulator for heat networks, to
urgently consider implementing price protections for
customers.”
Notes for editors:
- UK government Regulations: heat networks
(metering and billing)
- NAO Decarbonising home
heating March 2024
- Element energy Analysis of a net zero
2030 target for Greater London
- London Assembly Research Unit, Data Analysis, Heat networks in London | London
City Hall
- Read the report in full attached
- As well as investigating issues that matter to Londoners, the
London Assembly acts as a check and a balance on the Mayor.
