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To ask His Majesty's Government what advice they have issued, if any, to Right to Manage Companies which operate heat networks and are required to interact with the Energy Ombudsman, Heat Network Technical Assurance Scheme, and Ofgem, particularly in relation to compliance with authorisation conditions under the Heat Networks (Market...
To ask His Majesty's Government what advice they have issued, if any, to Right to Manage Companies which operate heat networks and are required to interact with the Energy Ombudsman, Heat Network Technical Assurance Scheme, and Ofgem, particularly in relation to compliance with authorisation conditions under the Heat Networks (Market...
Regulations will play a key role in ensuring consumers on a heat network receive the protections they need.
As the appointed regulator for heat networks, Ofgem is responsible for the oversight and enforcement of the new regulatory framework.
It has issued guidance to support those who own and operate heat networks, including on how to register with Ofgem and consumer protection rules and requirements set out in the authorisation conditions. The full list of guidance can be found on the Ofgem Heat Networks webpage.
To ask the Secretary of State for Energy Security and Net Zero, what assessment her Department has made of the potential impact of electricity policy costs on the competitiveness of low-carbon heat networks relative to gas heating; and if she will consider removing the Renewables Obligation cost from electricity used...
To ask the Secretary of State for Energy Security and Net Zero, what assessment her Department has made of the potential impact of electricity policy costs on the competitiveness of low-carbon heat networks relative to gas heating; and if she will consider removing the Renewables Obligation cost from electricity used...
To ask the Secretary of State for Energy Security and Net Zero, whether her Department has had discussions with the Treasury on developing a regulated asset base-style funding model for strategic heat network infrastructure.
To ask the Secretary of State for Energy Security and Net Zero, whether her Department has had discussions with the Treasury on developing a regulated asset base-style funding model for strategic heat network infrastructure.
To ask the Secretary of State for Energy Security and Net Zero, what steps she is taking to ensure that projects based in Wales receive an adequate share of the Green Heat Network Fund.
To ask the Secretary of State for Energy Security and Net Zero, what steps she is taking to ensure that projects based in Wales receive an adequate share of the Green Heat Network Fund.
To ask the Secretary of State for Energy Security and Net Zero, with reference to the findings of the ADE: Heat Networks Cost of Heat Research, if she will bring forward legislative proposals to create a level playing field on carbon for the heat network sector.
To ask the Secretary of State for Energy Security and Net Zero, with reference to the findings of the ADE: Heat Networks Cost of Heat Research, if she will bring forward legislative proposals to create a level playing field on carbon for the heat network sector.
We thank the ADE for their research. The government is clear that zoning will support the development of low-cost, low-carbon heat networks across England. We recognise that some heat networks will need time to meet the zoning emissions limits that will be required to develop in zones; that is why we have set the emissions limit to come into force from 2030. Funding is available through the Green Heat Network Fund to support the development of new low-carbon heat networks, or the decarbonisation of existing heat networks.
To ask the Secretary of State for Energy Security and Net Zero, what assessment her Department has made of the potential merits of the ADE: Heat Networks Cost of Heat Research recommendation for a targeted electricity discount.
To ask the Secretary of State for Energy Security and Net Zero, what assessment her Department has made of the potential merits of the ADE: Heat Networks Cost of Heat Research recommendation for a targeted electricity discount.
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As we set out in the Warm Homes Plan, we will need to go further to reduce electricity prices for heat networks. The government intends to consult on options to reduce costs and make electrification an economically rational choice for a wider range of businesses and organisations.
To ask the Secretary of State for Energy Security and Net Zero, with reference to the ADE: Heat Networks Cost of Heat Research, what estimate her Department has made of the potential cost impact on consumers of not capturing heat wasted from data centres and other sources.
To ask the Secretary of State for Energy Security and Net Zero, with reference to the ADE: Heat Networks Cost of Heat Research, what estimate her Department has made of the potential cost impact on consumers of not capturing heat wasted from data centres and other sources.
Data centres will be an important source of low-carbon heat for heat networks. DESNZ has agreed to fund several projects across England where heat is being recovered from data centres because they can offer very low-cost heat which would otherwise go to waste. Through heat network zoning, certain types of buildings and low-carbon heat sources can be required to connect to a network, helping unlock low-cost waste heat from sources such as industry and data centres.
To ask the Secretary of State for Energy Security and Net Zero, with reference to the ADE: Heat Networks Cost of Heat Research, what consideration she has given to the role of strategic zoning in reducing the cost of heat for consumers.
To ask the Secretary of State for Energy Security and Net Zero, with reference to the ADE: Heat Networks Cost of Heat Research, what consideration she has given to the role of strategic zoning in reducing the cost of heat for consumers.
As set out in the Warm Homes Plan, heat network zoning in England (and the establishment of local Zone Coordination Bodies) will help to lay the groundwork for a more place-based approach to heat. Zoning gives local government greater certainty on where district heat networks will be the cheapest option in their area, and the tools to designate and drive these zones into delivery.
To ask the Secretary of State for Energy Security and Net Zero, what assessment her Department has made of the potential impact of heat networks in reducing electricity grid constraints.
To ask the Secretary of State for Energy Security and Net Zero, what assessment her Department has made of the potential impact of heat networks in reducing electricity grid constraints.
As set out in the Warm Homes Plan, we estimate that heat networks could save an estimated £5 to 7 billion in electricity distribution network savings alone by 2050. The department is working with industry to explore and quantify a broader range of electricity system benefits.
To ask the Secretary of State for Energy Security and Net Zero, what protections are in place for consumers on heat networks wishing to challenge charges before the completion of the Ofgem authorisation process in January 2027.
To ask the Secretary of State for Energy Security and Net Zero, what protections are in place for consumers on heat networks wishing to challenge charges before the completion of the Ofgem authorisation process in January 2027.
Since the introduction of the heat network regulator, Ofgem rules require operators and suppliers 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.
We have also introduced statutory consumer advice and advocacy services for heat network consumers since April 2025, including on price. For unresolved disputes, heat network consumers can refer their case to the Energy Ombudsman who can provide statutory redress as part of their Alternative Dispute Resolution scheme.
To ask the Secretary of State for Energy Security and Net Zero, what his Department's planned timetable is for the full implementation of the heat network regulatory framework.
To ask the Secretary of State for Energy Security and Net Zero, what his Department's planned timetable is for the full implementation of the heat network regulatory framework.
Government has introduced statutory redress through the energy ombudsman and statutory advice and advocacy through Citizens Advice and Consumer Scotland for heat network consumers from April 2025. The Department has subsequently introduced Ofgem as the heat network regulator from January 2026. Heat network suppliers and operators have until January 2027 to register with Ofgem and supply data. Ofgem will use this to further develop the regulatory regime including informing their approach to pricing rules and guidance.
The Department have also consulted on mandating minimum technical standards for heat networks, to deliver better outcomes for consumers. A government response will be published in due course.
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 the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 9 June 2026 to Question 5439 on Natural Gas: Prices, what data his Department holds on changes to bills for consumers connected to communal heat networks since gas prices increased following the situation...
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 9 June 2026 to Question 5439 on Natural Gas: Prices, what data his Department holds on changes to bills for consumers connected to communal heat networks since gas prices increased following the situation...
Ofgem as the regulator for heat networks has launched an online registration platform to capture information about heat networks. Authorised networks have until January 2027 to submit data, including on pricing. Ofgem has also issued a request for information to heat network suppliers.
The Department continues to consider all options available to mitigate higher prices.
To ask the Secretary of State for Energy Security and Net Zero, whether his department has considered introducing a revenue support mechanism to support the growth of the UK heat network sector.
To ask the Secretary of State for Energy Security and Net Zero, whether his department has considered introducing a revenue support mechanism to support the growth of the UK heat network sector.
We are committed to supporting heat networks as a key technology to electrify our economy and reduce our reliance on fossil fuels for heating homes and businesses.
The government recognises the need to consider both the upfront costs of installing new low-carbon heat networks and the long-term running costs for buildings connected to them.
We intend to consult on options to reduce costs and make electrification an economically rational choice for a wider range of businesses and organisations.
To ask the Secretary of State for Energy Security and Net Zero, what barriers to heat network deployment his department has identified, and what steps are being taken to help tackle them.
To ask the Secretary of State for Energy Security and Net Zero, what barriers to heat network deployment his department has identified, and what steps are being taken to help tackle them.
In the Warm Homes Plan we set out several barriers to heat network deployment, including high upfront capital costs, limited investment certainty, supply chain and skills constraints, and low consumer confidence due to historic issues around pricing and reliability.
The government is addressing these by introducing heat network zoning in England to provide long‑term certainty, expanding capital support through funds such as the Green Heat Network Fund, and strengthening regulation to improve consumer protection and trust. It is also supporting supply chain growth and skills development.
Lords motion to consider. Agreed to on question.
Lords motion to consider. Agreed to on question.
It is unfortunate that your Lordships have me again for this SI, but I hope I can be brief and to the point on this one. I believe that this particular SI produces a number of fairly technical but pretty minor changes to the way contracts for difference are bid...
It is unfortunate that your Lordships have me again for this SI, but I hope I can be brief and to the point on this one. I believe that this particular SI produces a number of fairly technical but pretty minor changes to the way contracts for difference are bid...
My Lords, it is a great pleasure to listen to the Minister. He is the one Minister who, I know, if we asked for a one-and-a-half-hour explanation, he would be able to do it without notes because of his deep knowledge. When I looked at the Explanatory Note, I saw...
My Lords, it is a great pleasure to listen to the Minister. He is the one Minister who, I know, if we asked for a one-and-a-half-hour explanation, he would be able to do it without notes because of his deep knowledge. When I looked at the Explanatory Note, I saw...
My Lords, I thank the Minister for his introduction—clearly, this stuff is more complicated than eBay. I also thank my noble friend for raising important questions about geothermal that I hope the Minister will come to answer, but we support the inclusion and further development of that technology within our...
My Lords, I thank the Minister for his introduction—clearly, this stuff is more complicated than eBay. I also thank my noble friend for raising important questions about geothermal that I hope the Minister will come to answer, but we support the inclusion and further development of that technology within our...