Commons Sense

House of Commons · Ministers' Questions

Heat Networks

Tuesday 19 September 2023 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 3 Not answered 0

Key points

  • Government are providing 32 million through the heat network efficiency scheme to upgrade existing heat networks and reduce energy costs.
  • The scheme aims to benefit consumers in more than 10,000 houses by upgrading old equipment and reducing energy use.
  • Government plan to appoint Ofgem as a heat network regulator through the Energy Bill to ensure customers receive fair pricing and high-quality service.

Topics (select to filter)

Questions & Answers

Q1 Janet Daby Lab Lewisham East
Energy
Context

The question arises from concerns about the high costs and lack of regulation in some district heat network schemes.

Question

What assessment has been made with Cabinet colleagues of the potential merits of introducing a mandatory price cap on heat networks?

Answer from Amanda Solloway

The Government are providing millions in support for remedial work through the heat networks efficiency scheme. We are supporting customers with their bills via the energy bills discount scheme. Through the Energy Bill we will appoint Ofgem as a heat network regulator, so that customers benefit from fairer prices.

Partly answered

Not addressed: Specific assessment of merits of mandatory price cap

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Q2 Meg Hillier Labour (Co-op) Hackney South and Shoreditch
Housing Energy
Context

Many residents are concerned about the costs associated with changing their heat networks under proposed Government rules.

Question

Given many blocks have also had cladding and other pressures on leaseholders, are the Government looking carefully to ensure that customers are not being overlayered with many more charges to remediate networks?

Answer from Amanda Solloway

Through the heat network efficiency scheme, the Government are providing £32 million to upgrade existing heat networks and reduce energy costs. The scheme will upgrade old equipment and help consumers in more than 10,000 houses to reduce their energy use. We will shortly announce the first awards from the fund.

Partly answered

Not addressed: Specific measures preventing additional charges for customers

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Q3 Elliot Colburn
Energy Local Government
Context

Resident concerns in New Mill Quarter about problems and lack of tariff options in a heat network scheme.

Question

Does my hon. Friend agree that residents have been let down by the mismanagement identified in an independent report on its poor running by Lib Dem-run Sutton Council? Will she commit to working with me to ensure that heat network customers, who have nowhere else to go for their energy, are protected by new measures in the Energy Bill?

Answer from Amanda Solloway

I know how hard my hon. Friend works for his constituents and I thank him for bringing this scheme to my attention. We want all heat network customers to receive a high-quality service and fair pricing, which is why we are appointing Ofgem as a regulator through the Energy Bill and currently consulting on how it will operate. Of course I will meet my hon. Friend.

Answered
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Q4 Janet Daby Lab Lewisham East
Energy
Context

Residents are locked into district heat network schemes with costs up to 13 times higher than the rest of the UK due to lack of energy price caps.

Question

Many of my residents are locked into district heat network schemes. They have been paying up to 13 times more than the rest of the UK because they are not protected by the energy price cap. Do the Government not think it is time to implement a mandatory price cap straight away?

Answer from Amanda Solloway

At this moment in time we do not think that a uniform price cap would benefit consumers, given the huge diversity in size and scale of providers in the market. However, through the Energy Bill, the Secretary of State will have powers to introduce a price cap, should one be beneficial in future.

Partly answered

Not addressed: Commitment to implement mandatory price cap immediately

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