Recovering the costs of heat networks regulation consultation outcome published by the UK Government
Heat networks play an important role in decarbonising heat and support delivery of the UK’s net zero commitments.
In the consultation for Heat Networks: Building A Market Framework, the UK Government outlined how there are currently no sector specific protections for heat network consumers, unlike for consumers of other utilities such as gas, electricity, and water. Regulation would increase consumer protections, for instance via improved technological and reliability standards as well as price regulation.
Based on the response to the consultation, in forthcoming legislation the UK government will progress with Option C:
Ofgem’s and Citizens Advice’s total ongoing costs of regulating the heat networks, gas, and electricity markets to be spread evenly across heat network, gas, and electricity consumer bills.
There will be continued opportunities for engagement on cost recovery as BEIS develops the policy, and when Ofgem consults on its cost recovery principles at the set-up phase.