Zoning: The Heat Networks Puzzle

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.

The London Assembly Environment Committee has 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.

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, 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.