District Heating System and Local Energy Networks

tacpot12

The lack of regulation was a big problem, but at least it is being partially addressed. A cap on pricing would be the final peice of the jigsaw to provide some protection to district heating system users. 

SarahB16

TroubledTarts said:

I don't believe these system have the protection  required to not jack up prices and costs.

I have read on other forums of extortionate standing charges and high kwh prices.

Can you find out what the current prices are and if the property has an individual meter to monitor your usage.

I agree and all very good points to bear in mind for someone considering it.

It was a conversation with an acquaintance of mine who seems to think local energy networks are wonderful so just wanted to try to understand a little bit more about how local energy networks work.  

danco

The great thing about local energy networks is that a properly maintained one (and they might not be maintained properly) is likely to use less energy than individual heating.

The bad thing is that they are priced as commercial usage, not domestic, so not subject to any price cap, and it depends on how good a broker the management use in making the energy contract. Not, though, that VAT should be taken at the 5% domestic rate, not the 20% commercial rate.

And the suppliers are not entitled to charge more than their costs (roughly speaking, I think they may be able to make some charges), they certainly can't make an arbitrary price.