District Heating

Department for Business, Energy and Industrial Strategy written question – answered on 26th January 2023.

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Photo of Alison Thewliss Alison Thewliss Shadow SNP Spokesperson (Home Affairs)

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to regulate communal heat networks; and whether his Department plans to introduce price caps for consumers on communal heat networks.

Photo of Graham Stuart Graham Stuart Minister of State (Minister for Climate)

The Energy Bill, introduced to Parliament in June 2022, contains measures that will introduce consumer protection regulations for heat networks across the UK and will appoint Ofgem as the regulator in Great Britain, including communal networks.

Ofgem will have powers to introduce rules and/or guidance on fair and consistent pricing, take enforcement action against disproportionately high pricing, and the ability to set price comparison and benchmarking methodologies.

The Secretary of State will hold powers to introduce a price cap into the market, balancing out the benefits of a price cap with the risks inherent in a nascent market.

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