Urgent need for heat network price protections

The London Assembly Environment Committee is calling on the Government to urgently introduce price protections for heat network customers, with the conflict in the Middle East and the closure of the Strait of Hormuz to shipping, bringing into sharper focus the vulnerability of heat network customers to rising costs.

The Committee has been investigating the expansion of heat networks in London and the Government’s proposals for new heat network ‘zones’.

Leonie Cooper AM, Chair of the London Assembly Environment Committee, said:

“Throughout our investigation, we heard of the extreme increases in bills that many heat network customers suffered during the last energy price spike in 2021-22, when customers were left completely exposed.

“While decarbonised heat networks potentially improve energy security through the use of waste heat and renewable energy, most are currently still hugely affected by price shocks while electricity prices are still linked to gas. 

“The ongoing conflict in the Middle East risks rising costs for gas and oil. Even prior to recent price rises, gas prices for customers in the United Kingdom were expected to be 50 per cent higher in March 2026 than in the winter of 2021-22.

“It is only fair that Londoners on heat networks are given the equivalent support with their heating bills that other domestic gas and electricity consumers receive, which is why we are calling on the Government to urgently introduce price protections for heat networks.

“The Government should pause any further expansion of heat network zoning until these price protections are in place.”

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