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District heating suppliers have been warned not to put up the price of their services by more than 67% next year by markets regulator ACM.

District heating companies are allowed by law to put up their prices in line with the cost of gas, but the ACM has told firms not to increase their charges by the maximum amount.

Consumers with district heating schemes have no choice about supplier and so the ACM sets maximum price rises, although legislation is being drawn up to change this.

Some 500,000 homes in the Netherlands are connected to district heating systems, which provide heat either from generators or by using excess warmth produced by incinerators or factories.

If companies put up their fees by the maximum, the average household will pay €2,542 for heat next year, compared with €1,523 in 2021.

Bankruptcy

Meanwhile, small energy company Naked Energy has become the seventh supplier in the Netherlands to go bust because of rising gas and electricity prices.

The company had just 2,600 clients and has told the ACM that it is no longer financially able to supply them. Naked Energy bought its gas and electricity via Energie I&V which went bust at the beginning of the month.

The company is now looking for a third party to take over its contracts.

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