Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government whether they are having discussions with Ofgem about (1) shifting its regulatory focus from gas to heat, and (2) considering cost recovery for heat networks through its upcoming price control framework.
Ofgem took on responsibility for regulating heat networks in January, and Ministers have been engaging regularly with Ofgem on how their role will develop.
Under current Ofgem rules, heat networks have a requirement to set fair and transparent prices. Whilst Ofgem have consulted on bench marking proposals in relation to these rules, they do not set the prices heat networks charge and heat networks are not governed by the energy price cap or regulated under Ofgem's network price control framework.