Around half of households connected to a district heating network could see their heating bills rise, in some cases significantly, according to the Authority for Consumers & Markets (ACM). District heating networks currently supply around 700,000 households in the Netherlands.
The increase is linked to the proposed Collective Heat Act (WCW). Under the legislation, the ACM would eventually set heat tariffs based on the actual costs of individual heat networks. At present, a maximum tariff applies and is based on the average cost of a gas connection and gas-fired boiler. That cap is set to be removed.
ACM economists estimate that 10 per cent of affected households would pay 71 per cent more under the new system. This would increase their annual costs by about €740. In extreme cases, households could face annual increases of up to €1,500 if the government does not take action.
Not all customers would pay more. According to the ACM, the 10 per cent of households that benefit the most from the new system would see their bills fall by an average of 29 per cent.
The watchdog says the WCW still leaves room for the government to introduce additional measures to improve the affordability of heating for households. The ACM is also carrying out further research on the issue and is preparing for cost-based tariff regulation.
According to the ACM, the revised law has two main goals. The first is to ensure that consumers pay only for the costs of their own heat network. The second is to provide investors with greater certainty about earning a reasonable return on their investments.
@anp | NEWSBRAINPORT
