District heating

MQT on 2016-03-16
Session date: 
March 16, 2016
Question By: 
Jenny Jones
City Hall Greens
Asked Of: 
The Mayor


The DECC report 'An Assessment of the Costs, Performance, and Characteristics of UK Heat Networks' published last year carried out a review of the prices charged to customer by a representative sample of heat networks. The average heat price was found to be 6.43p/kWh but with a wide range of 4.64 to 9.88 p/kWh, which was still on average less than a typical average gas central heating system.  Given your involvement in the roll out of district heat networks, does this price range accord with your expectations of district heat network suppliers in London and how much they charge customers?



Answer for District heating

Answer for District heating

Answered By: 
The Mayor

There are many factors affecting the price of heat supplied from district heating schemes and this is seen in the range of prices published in the DECC report. The report price range is similar to the prices seen at the feasibility-stage in my work helping others develop larger-scale heat network projects. It should also be noted that district heating heat results in lower carbon dioxide emissions compared with that from gas central heating systems.