Heat Network Regulations – What & When?

Heat network regulation is forthcoming. These will impact on developers, owners and operators of heat networks. This article summarises what is coming when and the status of each element.

Consumer protection

• Consultation closed in 2023. Government currently analysing feedback.
• No confirmed date for introduction. Expected 2025-26
• Likely to introduce regulation on fair pricing & billing transparency (within individual bills and between heat networks)
• Does not propose to introduce price capping at this stage (could be introduced in future, but would likely be at a higher level than comparison to individual gas boilers)
• Does not propose to ban ESCO capital investment nor require this to be shown on resident bills
• Enable pricing investigations. All heat network operators are encouraged to establish pricing strategy and be ready to provide evidence and justification – this will encourage them to be operated efficiently
• Enable data collection

Zoning

• Consultation closes 26^th February
• No confirmed date for introduction. Expected 2025-26
• Seeks to designate zones where connection to a heat network is expected to be the lowest cost option and hence connection will be expected

Technical standards

• Consultation expected to be issued in 2024
• Likely to include minimum design standards, potentially based on CIBSE CP1 compliance