The Department for Business, Energy & Industrial Strategy has
published a consultation on recovering
the costs of heat networks regulation (closing 16 February
2022) alongside this government response. Responses will inform
policy development on cost recovery.
Following the policy development phase, we will introduce
legislation when parliamentary time allows. As set out in the
February 2020 consultation, there may be grounds for transition
arrangements for some aspects of the Market Framework. We will
inform industry of the proposed nature and duration of those
arrangements, and provide further opportunity for you to provide
views.
Please continue to follow existing good practice, such as that
set out by the Heat
Trust and the ADE-CIBSE
Code of Practice.
Detail of feedback received
We received 118 responses to the consultation. A diverse range of
groups provided their views, with respondents consisting of:
- 11 consultancies
- one developer
- 8 energy companies
- 21 energy service companies (ESCOs)
- one financial investor
- 23 individuals
- one public institution
- 5 local authorities
- 4 metering companies
- 11 other businesses
- 16 organisations representing consumers
- 2 think tanks
- 10 trade associations
- 4 other organisations
Original consultation
Summary
We're seeking views on policy options for the development of a
regulatory framework for heat networks to protect consumers,
support market growth and develop low carbon networks.
This consultation ran from
10:30am on 6 February 2020 to 11:45pm on 1 June 2020
Consultation description
In order to achieve net-zero carbon emissions by 2050, nearly all
heat in buildings will need to be decarbonised. Heat networks are
a crucial aspect of the path towards decarbonising heat.
In this consultation, we are seeking views on policy options for
regulating heat networks to protect consumers and ensure fair
pricing, while supporting market growth and the development of
low-carbon networks.
This consultation sets out:
- measures to increase levels of investment in the sector, such
as provision of market information and support for strengthening
local approaches that will help generate additional demand
certainty on projects
- policy options for establishing a market framework to deliver
important consumer protections, equivalent to those offered to
gas and electricity customers, as the market expands
- proposals relating to the choice of regulator, the regulatory
approach, enforcement powers and step-in arrangements
- proposals for protecting consumers including on transparency,
pricing and quality of service standards
- proposals for developing technical standards and
certification and accreditation processes to improve the quality,
cost and reliability of heat networks
- proposals for giving heat networks equivalent rights and
powers (such as undertaker or statutory access rights) compared
with other utilities
- proposals to drive decarbonisation of heat networks and use
of waste-heat sources
We have also published:
- an impact assessment – providing indicative costs of each
regulatory option considered
- the International review of
heat networks market frameworks – commissioned by BEIS
from CAG consultants - an important resource to understand how
other countries have approached heat network regulation
Extension to consultation end date
In the light of COVID-19, we have extended the consultation
period to give people more time to respond.
Documents
Heat networks: building a
market framework - consultation document
PDF, 1.46
MB, 84 pages
Heat networks: building a market
framework - impact assessment
PDF, 664
KB, 52 pages
