Heat networks
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Benefits of price cap for heat networks ‘outweighed by risks to consumers’
The government has doubled down on its previous assertion that introducing a price cap for the heat networks market would do more harm than good. The proposal that price regulation, such as a price cap or profit regulation, should not be introduced in the near term was supported by more than half (55%) of respondents to a consultation on heat networks regulation run by Department for Energy Security and Net Zero (Desnz). Consequently, the government’s response to the consultation concludes that “the benefits of a price cap are outweighed by the risks to consumers, given the nascent and diverse state of the market”.
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