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« BackNews: Study Launched Into Heat Networks To Ensure Households Get Good Deals

Study Launched Into Heat Networks To Ensure Households Get Good Deals

The Competition and Markets Authority (CMA) has launched a study into domestic heat networks, which heat multiple properties from a single central source, to make sure that households get a good deal.

At the moment, around half a million homes in the UK are powered through approximately 17,000 networks and it’s expected that the number of customers using these networks will grow significantly to about 20 per cent of all households come the year 2030.

The CMA will look into whether or not customers are aware of the costs of these networks before and after moving into a house, the prices, reliability and service quality of them, and whether or not they’re natural monopolies as well as the impact of different incentives for customers, operators and builders.

Chief executive of the CMA Andrea Coscelli said: “We have concerns that this sector may not be working as well as it could be for the half a million homes heated by these systems now and the millions that may be connected in the future. That is why we’re taking a closer look at this market to ensure that heat network customers get a good deal on their energy now and in the future.”

Heat networks first came to the fore in places like Denmark, Sweden, Poland and Germany, which during the 40s began looking into how heat could be centrally produced, distributed by pipes transporting hot water into properties through radiators. You may also hear these networks referred to as district heating.

Sweden in particular made it a serious priority after the oil crisis in the 70s, as it was keen to reduce its reliance on fossil fuels.

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