- New scheme will make existing heat networks in England and
Wales more energy efficient – reducing emissions and household
bills
- upgrades will help more than 100,000 homes reduce their
energy use with heat network operators able to apply for funding
from today
- some heat networks haven’t been upgraded since they were
installed more than 40 years ago
Old and inefficient heat networks will be given a £32 million
cash injection to produce cheaper energy and reduce carbon
emissions for thousands of homes across England and Wales.
Through the newly launched Heat Network Efficiency
Scheme, out of date equipment will be upgraded with energy
efficient alternatives such as replacement pumps, pipe insulation
and underfloor heating controls. Cutting-edge data monitoring
systems will also be introduced to check systems are performing
correctly.
The new scheme will deliver improvements to existing heat
networks, helping consumers in more than 100,000 homes reduce
their energy use - lessening the burden of increasing heating
bills.
The changes will help prevent against breakdowns where customers
are without heat and hot water and reduce instances of homes and
corridors becoming too hot through heat escaping from inefficient
piping.
Business and Energy Minister said:
This £32 million boost will provide thousands of homes in England
and Wales with cheaper, greener energy through upgrades these
heat networks desperately need.
We’re investing in new heat networks, but it’s just as important
to maintain and refurbish existing systems to ensure all
customers can benefit from reduced energy use and household
bills.
Heat network operators, such as universities, NHS Trusts and
charities, will be able to bid for funding from today by
requesting an application form from delivery partner Gemserv.
Some heat networks haven’t been upgraded since they were
installed more than 40 years ago, meaning many are inefficient
due to not being installed properly, poorly maintained or the
equipment has begun to wear out.
Heat networks offer carbon emissions savings by supplying heat to
buildings from a central source, avoiding the need for households
and workplaces to rely on individual, energy-intensive heating
solutions - such as gas boilers. As such, heat networks provide a
significant contribution to the UK’s carbon reduction commitment.
The Heat Network Efficiency Scheme (HNES) forms an important
part of the government’s support for heat networks which also
includes the £288 million Green Heat Network Fund.
HNES follows
and builds on the HNES Demonstrator, a
one-year project which ran until March 2022. As well as
delivering improvements to 37 existing heat networks,
HNES
Demonstrator supported 73 projects to identify cost-effective
improvement measures.
, Director at Heat Trust, the
national consumer protection scheme for heat network customers
said:
At Heat Trust we sadly hear of far too many examples of
inefficient and poorly performing heat networks. These can result
in much higher energy costs for residents, overheating corridors
and frequent breakdowns.
The rise in gas prices over the last year has meant that
inefficient heat networks are now expensive for residents. The
Heat Network Efficiency Scheme is therefore an important step in
the right direction, and I would urge all those responsible for
running heat networks to consider bidding for funding.
To further improve the operation of existing heat networks, a
series of guidance
videos has also been published today that sets out the
practical steps that operators of heat networks can take to
improve the performance of their systems.
The government is delivering energy bill support to consumers on
heat networks through the Energy Bill Relief Scheme and passed
legislation last year to ensures that suppliers pass on savings
to residents.
This is on top of the £400 that all consumers receive off their
energy bills this winter via the Energy Bills Support Scheme and
for support with electricity bills through the Energy Price
Guarantee.
Notes to editors
HNES will
provide funding for existing projects through:
- £30 million of capital grants to part-fund delivery of
network efficiency upgrades
- £2 million of revenue grants to fund heat networks procuring
third-party support to identify and assess packages of efficiency
improvement measures
HNES is open
to applicants in England and Wales that are responsible for
operating or managing existing district heat networks or communal
heating systems. These include:
- public sector organisations including NHS trusts and
universities and other government departments
- private sector organisations that are registered companies
and submit annual accounts
- third sector organisations such as registered charities,
community investment companies and other organisations that are
officially registered and submit annual accounts
