The London Assembly Environment Committee is
calling on the Government to urgently introduce price protections
for heat network customers, with the conflict in the Middle East
and the closure of the Strait of Hormuz to shipping, bringing
into sharper focus the vulnerability of heat network customers to
rising costs.
The Committee has been investigating the
expansion of heat networks in London and the Government's
proposals for new heat network ‘zones'.
AM, Chair
of the London Assembly Environment Committee,
said:
“Throughout our investigation, we heard of the extreme increases
in bills that many heat network customers suffered during the
last energy price spike in 2021-22, when customers were left
completely exposed.
“While decarbonised heat networks potentially improve energy
security through the use of waste heat and renewable energy, most
are currently still hugely affected by price shocks while
electricity prices are still linked to gas.
“The ongoing conflict in the Middle East risks rising costs for
gas and oil. Even prior to recent price rises, gas prices for
customers in the United Kingdom were expected to be 50 per cent
higher in March 2026 than in the winter of 2021-22.
“It is only fair that Londoners on heat networks are given the
equivalent support with their heating bills that other domestic
gas and electricity consumers receive, which is why we are
calling on the Government for Ofgem to urgently introduce price
protections for heat networks.
“The Government should pause any further expansion of heat
network zoning until these price protections are in place.”
Notes to editors:
- Find out more about the work of the Environment
Committee.
- Read the letter in full attached.
- London has around a quarter of a million residential
customers on heat networks Heat Networks in London,
February 2026 p17
