Protect Londoners from ‘bad deal’ with heat networks

Britain’s energy regulator, Ofgem, must urgently consider implementing price protections for heat network customers, with continued energy price increases due to the conflict in the Middle East

Ofgem was appointed as the regulator for heat networks in January 2026.^[1]

The London Assembly Environment Committee has today published its report - Zoning: The Heat Networks Puzzle – calling for stronger price protections for Londoners on heat networks.

The Committee investigation found that due to planning rules in new developments, a significant number of Londoners on heat networks in these new builds are in social housing.

Heating homes currently accounts for around 18 per cent of the UK’s climate emissions.^[2]

London Plan policy has promoted heat networks, which feature significantly in the Mayor’s strategy for achieving net zero emissions of greenhouse gases by 2030. The Mayor’s preferred ‘pathway’ is based on 460,000 heat network connections by 2030,^[3] and so the Committee looked in detail at how to get things right.

The Committee heard that heat network customers have often struggled to understand what they are paying for, how prices are calculated, and whether charges are fair.

The Committee is now calling for:

• The Greater London Authority (GLA) to take the lead in ensuring price protection for Londoners and establish a set of Fair Pricing Principles for all heat networks in London.
• Where existing under-performing legacy heat networks in social housing are being upgraded, there should be price protection for leaseholders in terms of capital costs.
• The GLA should work with Ofgem and the Department of Energy Security & Net Zero (DESNZ) to develop a best practice guide, similar to an EPC rating that gives a short, clear introduction to heat networks, their efficiency levels, and explains heat network charges.

Leonie Cooper AM, Chair of the London Assembly Environment Committee while the investigation took place said:

“We are deeply concerned that some Londoners have experienced considerable harms as a result of higher heating prices.

“For too many in London, their experience of heat networks has not been satisfactory. They are getting a bad deal, and one from which they cannot escape.

“For some, this is a very steep personal price to pay for a lower carbon heating network.

“Tackling climate change is something we support, but we must ensure customers are protected from volatile price increases, particularly with the ongoing crisis in the Middle East.

“We are urging Ofgem, as the regulator for heat networks, to urgently consider implementing price protections for customers."

Follow us @LondonAssembly.

1. UK government Regulations: heat networks (metering and billing)
2. NAO Decarbonising home heating March 2024
3. Element energy Analysis of a net zero 2030 target for Greater London
4. London Assembly Research Unit, Data Analysis, Heat networks in London | London City Hall
5. Read the report in full attached
6. As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
7. Leonie Cooper AM, Chair the Environment Committee during the investigation, is available for interview.
8. Find out more about the work of the Environment Committee

For more information, please contact Daniel Zikmund in the Assembly Media Office on 07860647577 or [email protected]. For out of hours media enquiries please call 020 7983 4000 and ask for the Assembly duty press officer.