ACM: Uncertainty surrounding affordability is a large obstacle when switching to heat networks
                  

                
                                  

  
    
            

Housing corporations must inform their tenants properly before their homes are connected to a heat network. When informing them , they must provide information about the company that will supply the heat as well as about the costs. A study by the Netherlands Authority for Consumers and Markets (ACM) reveals that, due to uncertainty surrounding the costs and tariffs, it is often not possible for housing corporations to give tenants long-term guarantees regarding the affordability of heat. For social housing tenants in particular, uncertainty surrounding long-term affordability is an important obstacle when switching to a heat network.


In the National Climate Agreement (in Dutch: Klimaatakkoord), it has been agreed that natural-gas use must be phased out in all homes by 2050. A large share of those homes are owned by housing corporations. As such, housing corporations play an important role in the energy transition. In many cases, replacing the gas connection with a connection to a heat network is the most efficient and sustainable way to reach those goals. In most cases, housing corporations must ask their tenants for consent before homes are connected to a heat network. ACM regularly receives questions from tenants about the rules with which housing corporations must comply in that context. ACM has published extra information 
about this topic on the website of ACM’s consumer information portal ACM ConsuWijzer (in Dutch) in order to offer tenants and housing corporations clarity about this.


In addition, ACM conducted a study into the provision of information by housing corporations, and, as part of that study, interviewed housing corporations and tenants’ organizations, the Dutch umbrella organization for housing corporations Aedes, the Dutch Housing Corporation Authority (Aw), the Dutch tenants’ rights organization Woonbond, the Rent Tribunal (in Dutch: de Huurcommissie), the Association of Netherlands Municipalities (VNG), and the Dutch Ministry of Housing and Spatial Planning (VRO). On the basis of these conversations, ACM has identified that, generally speaking, housing corporations do their best to inform tenants. These conversations also reveal that the uncertainty surrounding long-term affordability is an important obstacle. Since housing corporations cannot offer guarantees regarding affordability, tenants are reluctant to give consent. That slows down the heat transition. 
Tariff regulation by ACM


Each year, ACM sets the maximum tariffs for heat. Heat companies are not allowed to charge more for their heat than these maximum tariffs set by ACM. The way in which ACM determines these tariffs has been laid down in law. Over the next few years, the maximum tariffs for heat are still linked to the average price for consumers that use natural gas for their heating needs (the so-called ‘no-more-than-otherwise’ principle). The Dutch Senate will soon vote on the bill for the Dutch Collective Heat Act (in Dutch: Wet collectieve warmte, WCW). The Dutch legislature plans to gradually phase out the no-more-than-otherwise principle. The tariffs for heat will subsequently be determined on the basis of the efficient costs that heat suppliers incur.


Cost-based tariffs are not a guarantee for affordable tariffs, and do not automatically make heat the most attractive alternative to natural gas. Over the next few years, heat suppliers need to make major investments for expanding their heat networks. They are allowed to recoup these efficient costs through their tariffs. The WCW guarantees that heat consumers do not pay more than is necessary for recouping these efficient costs. The Dutch House of Representatives has also arranged with an amendment that, before the switch to cost-based tariffs, it will be looked into what this change means for the height of the tariffs. The Dutch legislature is then able to take measures, if necessary. ACM already drew attention to the affordability of heat in an earlier Feasibility and Enforceability Assessment (UHT) as well as during a technical briefing in the Dutch House of Representatives.

      

    
          
                                          
                                  
                                      See also
                      
    

17-04-2025  ACM’s presentation at the technical briefing on tariff regulation and the WCW | ACM (in Dutch)17-08-2023  ACM issues recommendations regarding the bill for the Dutch Collective Heat ActNew connection to the heat network | ACM ConsuWijzer (in Dutch)
            
                                  
                                
                  

                
          
          
          Publication characteristics
          
                                    
                Publication date
                12-09-2025
              
                      
                                    
                Publication type
                  News

              
                      

                      
              Spokesperson
              
                                    Tjitte Mastenbroek

                              
            
          
                                

          
                      

                                    
                Keywords
                  Tariffs,
  Heat,
  Electricity

              
                      
                                    
                Subjects
                  Energy

ACM Highlights Affordability Concerns in Heat Network Transition

The Netherlands Authority for Consumers and Markets (ACM) has released a study indicating that uncertainty about costs and tariffs is a significant barrier for housing corporations when transitioning tenants to heat networks. This is particularly critical for social housing tenants who require long-term affordability guarantees.

As part of the National Climate Agreement, the Netherlands aims to phase out natural gas use in homes by 2050, with housing corporations playing a vital role in this energy transition. Housing corporations must seek tenant consent before connecting homes to heat networks, and ACM has noted an increase in tenant inquiries regarding the compliance of these corporations with relevant regulations.

ACM's study involved discussions with various stakeholders, including housing corporations and tenant organizations, revealing that while efforts are made to inform tenants, the lack of affordability guarantees leads to reluctance in consent, thereby slowing the heat transition.

ACM regulates maximum tariffs for heat, ensuring that heat companies do not exceed these limits. The current tariff structure is linked to natural gas prices, but upcoming legislation, the Dutch Collective Heat Act, aims to shift to cost-based tariffs. This change raises concerns about whether heat will remain an affordable alternative to natural gas, as significant investments are needed to expand heat networks.



ACM Highlights Affordability Concerns in Heat Network Transition

The Dutch competition authority, ACM, emphasizes the importance of clear communication from housing corporations to tenants regarding the costs associated with switching to heat networks, as uncertainty hampers the transition.