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To ask the Secretary of State for Energy Security and Net Zero, what powers Ofgem has to intervene where heat network prices are considered excessive.
To ask the Secretary of State for Energy Security and Net Zero, what powers Ofgem has to intervene where heat network prices are considered excessive.
As the regulator of heat networks, Ofgem have broad powers relating to price regulation. These include powers to investigate and intervene where heat network prices charged to consumers are disproportionate or unfair.
Under Ofgem’s authorisation regime, heat network operators and suppliers are required to charge consumers fairly and guidance has been published on the application of their fair pricing rules.
Heat networks have until January 2027 to register with Ofgem and supply data, including information about pricing. Ofgem will use this to further inform their approach to pricing rules and guidance.
To ask His Majesty's Government whether they are having discussions with Ofgem about (1) shifting its regulatory focus from gas to heat, and (2) considering cost recovery for heat networks through its upcoming price control framework.
To ask His Majesty's Government whether they are having discussions with Ofgem about (1) shifting its regulatory focus from gas to heat, and (2) considering cost recovery for heat networks through its upcoming price control framework.
Ofgem took on responsibility for regulating heat networks in January, and Ministers have been engaging regularly with Ofgem on how their role will develop.
Under current Ofgem rules, heat networks have a requirement to set fair and transparent prices. Whilst Ofgem have consulted on bench marking proposals in relation to these rules, they do not set the prices heat networks charge and heat networks are not governed by the energy price cap or regulated under Ofgem's network price control framework.
Lords motion to consider. Agreed to on question.
Lords motion to consider. Agreed to on question.
My Lords, these draft regulations were laid before the House on 30 October.
Heat networks have a crucial role to play in our decarbonisation ambitions and energy security mission. As proven internationally, they can provide low-cost, low-carbon energy for all, particularly in high-density areas such as our major cities. They are...
My Lords, these draft regulations were laid before the House on 30 October.
Heat networks have a crucial role to play in our decarbonisation ambitions and energy security mission. As proven internationally, they can provide low-cost, low-carbon energy for all, particularly in high-density areas such as our major cities. They are...
My Lords, I thank the Minister for his clear and comprehensive introduction to this SI and I welcome the fact that we are getting this long-overdue regulatory framework for heat networks. I agree with him that they are an important part of our energy future. Based on renewable and low-carbon...
My Lords, I thank the Minister for his clear and comprehensive introduction to this SI and I welcome the fact that we are getting this long-overdue regulatory framework for heat networks. I agree with him that they are an important part of our energy future. Based on renewable and low-carbon...
My Lords, we support the Government’s fundamental ambition grow UK heat networks from the current 3% to 20% of the UK’s heat network demand by 2050. We share this ambition; we recognise that heat networks will play a pivotal role in helping to achieve our drive towards net zero and...
My Lords, we support the Government’s fundamental ambition grow UK heat networks from the current 3% to 20% of the UK’s heat network demand by 2050. We share this ambition; we recognise that heat networks will play a pivotal role in helping to achieve our drive towards net zero and...
My Lords, I thank the Minister for setting out the purposes of these regulations. We welcome them, so I shall not overburden him with questions beyond those already asked by previous speakers. It is somewhat frustrating that I did not spot the error in the amendments to Regulation 56 in...
My Lords, I thank the Minister for setting out the purposes of these regulations. We welcome them, so I shall not overburden him with questions beyond those already asked by previous speakers. It is somewhat frustrating that I did not spot the error in the amendments to Regulation 56 in...
I thank noble Lords for their valuable contributions to this debate. A number of them go to the heart of why we are doing what we
are doing today: the question of the state of many of the older heat networks that exist in this country. They are very far...
I thank noble Lords for their valuable contributions to this debate. A number of them go to the heart of why we are doing what we
are doing today: the question of the state of many of the older heat networks that exist in this country. They are very far...
One of the responses provided by the Minister provoked a question in my mind; at this point, I should perhaps declare that I am a vice-president of the Local Government Association.
The Minister said that there would be fines for systems—we were talking in particular about those long pre-existing, 1960s and...
One of the responses provided by the Minister provoked a question in my mind; at this point, I should perhaps declare that I am a vice-president of the Local Government Association.
The Minister said that there would be fines for systems—we were talking in particular about those long pre-existing, 1960s and...
The noble Baroness makes a good point in relation to what are, as I have said, a huge number of systems of very different quality and status. Making regulations in respect of those sorts of bodies is very difficult, because they are all mini electricity or gas networks in their...
The noble Baroness makes a good point in relation to what are, as I have said, a huge number of systems of very different quality and status. Making regulations in respect of those sorts of bodies is very difficult, because they are all mini electricity or gas networks in their...
Lords motion to consider. Agreed to on question.
Lords motion to consider. Agreed to on question.
My Lords, these regulations were laid before the house on 28 November 2024.
We know that to reach our net-zero commitment and reduce our reliance on international fossil fuels, we must use all the tools we have available. Currently, heating accounts for 23% of the UK’s carbon emissions. Two of our...
My Lords, these regulations were laid before the house on 28 November 2024.
We know that to reach our net-zero commitment and reduce our reliance on international fossil fuels, we must use all the tools we have available. Currently, heating accounts for 23% of the UK’s carbon emissions. Two of our...
My Lords, I am pleased to say that we are very supportive of the heat networks regulations before us. We broadly welcome these moves, which will start to regulate the heat networks market in England, Wales and Scotland.
These regulations will bring in some much-needed consumer controls and protections for the...
My Lords, I am pleased to say that we are very supportive of the heat networks regulations before us. We broadly welcome these moves, which will start to regulate the heat networks market in England, Wales and Scotland.
These regulations will bring in some much-needed consumer controls and protections for the...
My Lords, these regulations represent a pivotal step in securing the long-term sustainability of heat networks across Great Britain. Heat networks are central to the UK’s decarbonisation strategy, particularly in densely populated areas, and are projected to supply 18% of the nation’s heat demand by 2050. Presently, more than 500,000...
My Lords, these regulations represent a pivotal step in securing the long-term sustainability of heat networks across Great Britain. Heat networks are central to the UK’s decarbonisation strategy, particularly in densely populated areas, and are projected to supply 18% of the nation’s heat demand by 2050. Presently, more than 500,000...
My Lords, could I ask the Minister one question? I apologise to him: I realised this was being done today only about 20 minutes ago.
A significant number of existing heat networks are run by local authorities or hived-off organisations owned by local authorities. The aim of this legislation, as far...
My Lords, could I ask the Minister one question? I apologise to him: I realised this was being done today only about 20 minutes ago.
A significant number of existing heat networks are run by local authorities or hived-off organisations owned by local authorities. The aim of this legislation, as far...
My Lords, I am most grateful to noble Lords who have taken part in this short but none the less interesting and, I think, important debate. As the noble Earl, Lord Russell, the noble Baroness, Lady Bloomfield, and my noble friend Lord Whitty have suggested, the development of heat networks...
My Lords, I am most grateful to noble Lords who have taken part in this short but none the less interesting and, I think, important debate. As the noble Earl, Lord Russell, the noble Baroness, Lady Bloomfield, and my noble friend Lord Whitty have suggested, the development of heat networks...
I should just clarify my remarks about Ofgem. In no way was I intending to imply that its work was anything other than exemplary—I was just commenting on the increasing workload that we are putting on Ofgem.
I should just clarify my remarks about Ofgem. In no way was I intending to imply that its work was anything other than exemplary—I was just commenting on the increasing workload that we are putting on Ofgem.
I did not take it as a criticism at all. The noble Baroness is absolutely right that we are asking Ofgem to do a lot—but her experience and mine is that it is very capable of doing that.
I did not take it as a criticism at all. The noble Baroness is absolutely right that we are asking Ofgem to do a lot—but her experience and mine is that it is very capable of doing that.
Motion to consider. Agreed to on question.
Motion to consider. Agreed to on question.