UK: CMA says heat networks should be regulated

The UK’s Competition and Markets Authority (CMA) says heat networks should be regulated, echoing calls from industry.The CMA outlined concerns over corner cutting, transparency, competition and costs to consumers.

The CMA released a report which found that heat networks, which distribute thermal energy to multiple properties for the use of heating, cooling or hot water, often offer similar or lower prices than gas or electricity tariffs, but warned that some customers, particularly those living in privately owned or rented properties, pay more for their heat.

It also found that heat network customers are not generally getting the same levels of consumer protection as gas and electricity customers.

Energy regulator Ofgem currently regulates gas and electricity, but not heat. As such, customers on heat networks have little or no protection. While developers and heat network operators can set their own rules, they also face higher cost of capital versus other utility infrastructure owners and operators.

Full Content: Holy Rood

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