The ACM’s 2023 heat efficiency monitor reinforces the message from Energie-Nederland: ensure that heating companies can achieve a reasonable return on investing in the transition of the built environment. We will be moving away from gas in the near future, and heating networks are one of the sustainable alternatives to heat our homes from now on. Achieving climate goals and reducing emissions requires the construction of heating networks so that more and more people can switch. Heat companies would like to invest in the transition of the built environment, but they do need sufficient returns to make those investments.
The ACM has published the heat efficiency monitor 2023. Through this monitor, the ACM checks whether heating companies, which are monopolies, do not achieve more than reasonable returns. This return monitor shows that, on average, the heating sector has achieved very low returns in 2023. Energie-Nederland is concerned about these structurally low returns on invested capital, with only 2.7% in 2022 and only 1.03% in 2023. In previous years, the average returns in the sector were also lower than what the ACM considers reasonable.
To illustrate: Anyone who currently wants to take out a new business loan will be faced with an interest rate of 4-5% (see the Interest Dashboard of De Nederlandse Bank). A company that wants to make new investments will have to achieve a return of above 4-5% to recoup the investment. The current average returns of 1.03% are therefore completely insufficient. This puts pressure on healthy, continuous business operations and puts a brake on new investments. Heat companies are currently finding it difficult to invest in the maintenance of networks and the construction of new heat networks, while these investments are necessary to realize the transition of the built environment and encourage people to phase out  gas.
The wide spread of returns shows that the heating sector is very diverse. Energie-Nederland considers it positive that the ACM is conducting further research into the upward peaks. We also draw attention to all heat suppliers who are just below a reasonable efficiency determined by the ACM. Energie-Nederland urges measures to improve the financial health of the sector, so that the heating sector can invest sustainably in the energy transition.
