- Measures designed to protect consumers and grow the
market for heat networks – the next step in government
plans to reach net zero emissions by 2050
- 7 heat networks awarded £40 million, giving thousands
more homes in Leeds, Bristol, Liverpool and London access
to low-carbon heating
Thousands of customers on heat networks will benefit from
new protections under plans launched today.
The proposed measures will ensure that customers are paying
a fair price for their heating and getting a good service
by bringing the regulation of heat networks into line with
other utilities. This will encourage the current networks
to expand and new ones to be established, meaning thousands
more homes and businesses could have access to cleaner
heating in the next decade.
Secretary of State for Business and Energy said:
Heat networks will be a crucial part of our commitment to
eliminate the UK’s contribution to climate change by
2050. I’m delighted we’re funding more heat networks all
over the country and ensuring better consumer protections
for those who use them.
Heat networks – sometimes called district heating – provide
heat for homes and businesses in place of a traditional gas
boiler. Low carbon heat networks such as those that source
energy from a heat pump or waste to energy plant distribute
energy to thousands of customers, making them far more
efficient than most existing forms of heating.
Ms Leadsom also announced £40 million of investment in 7
heat networks in Leeds, Bristol, Liverpool and London
today. The funding – part of the government’s Heat Networks
Investment Project – will mean that 30,000 more homes could
have access to clean heating. This could lead to 154,300
tonnes of CO2 being saved over the next
15 years – the equivalent of planting 400,000 trees.
At present less than 5% of energy used for heating homes
and buildings comes from low-carbon sources. Increasing the
number of homes and businesses on heat networks is an
important part of the government’s plans to improve take-up
of low-carbon heat as the UK seeks to end its contribution
towards climate change entirely by 2050.
Heat networks are one of the most cost-effective ways of
reducing carbon emissions from heating, and their
efficiency and carbon-saving potential increases as they
grow and connect to each other. The Committee on Climate
Change estimates that around 18% of UK heat will need to
come from heat networks by 2050 if the UK is to meet its
net zero target.
The measures proposed in the consultation being launched
today include:
- establishing Ofgem as the heat network regulator,
giving customers access to similar protections as other
energy customers
- requiring heat networks to report on price and quality
of service standards, meaning consumers will get a fair
price and good service
- giving all heat network consumers greater transparency
and information about their heat, ensuring they have
options for redress if things go wrong
- giving developers and investors the tools to establish
new heat networks and expand existing ones
- making sure all heat networks become low carbon by 2050
About the Heat Networks Investment Project
-
BEIS is investing £320 million into heat
networks in England and Wales up to March 2022 through
the Heat Networks Investment Project (HNIP), designed
to accelerate the growth of the market
- following investment in 7 pilot projects in 2017, the
main scheme opened for applications in February 2019.
Triple Point Heat Network Investment Management is
running HNIP under
contract
- in October 2018 several key private sector
organisations (Vattenfall, Metropolitan and SSE) also
announced significant investment in the UK heat network
sector
- the scheme has now awarded funding following 2 funding
rounds The Investment Committee is comprised of 3 Triple
Point members, one senior official from BEIS and
an independent panel member
- find out more about the Heat Networks
Investment Project
