🌿 Delegated Legislation Committee

• Heat networks are crucial for meeting the UK’s net zero carbon emissions goals, as they can reduce emissions from heating buildings, which account for 23% of the UK’s total emissions.
• The government expects heat networks to supply 20% of the UK’s heat demand by 2050, up from the current 3%, mainly by using efficient heat sources like large heat pumps and waste heat from data centers and incinerators.
• Current heat network consumers face challenges due to inconsistent regulation, being unable to switch suppliers and facing issues like unreliable heating and lack of transparency from suppliers.
• The draft Heat Networks (Market Framework) (Great Britain) Regulations 2025 aim to introduce a regulatory framework to protect consumers, similar to those for gas and electricity. This includes an authorisation regime managed by Ofgem.
• Existing heat networks will automatically receive authorisation, and Ofgem will have powers to monitor compliance, investigate issues, and enforce remedies, including consumer redress.
• The regulations will create consumer advocacy bodies and extend the Energy Ombudsman’s redress scheme to heat network consumers, starting in April 2025, ahead of full regulatory activities in January 2026.
• The regulations were broadly supported in consultations in 2020 and 2023, aimed at creating a fairer industry that protects consumers as the market grows.
• The opposition welcomed the regulations, noting the importance of protecting consumers in the expanding heat networks market, despite criticisms of broader government energy policy.
• There is a cross-party consensus on the necessity and potential benefits of the draft regulations for both consumers and urban regeneration.

The disagreement displayed in the session is minimal, warranting a rating of 1 out of 5. The primary focus of the session was on the Draft Heat Networks (Market Framework) (Great Britain) Regulations 2025, and there was a clear consensus among the members regarding the necessity and benefits of these regulations.

• Support from the Opposition: Andrew Bowie from the Opposition explicitly welcomed the move to regulate the heat networks market, indicating that the change is in the best interests of the consumers. He stated, “The Opposition absolutely support the regulation of the heat networks market for the sake of the protection of consumers from exorbitant charges.”

• Lack of Significant Disagreement: The only question posed by Graham Stuart was about the expected contribution of heat networks by 2030, which was answered by the Minister without any contentious dialogue. Miatta Fahnbulleh mentioned the challenges in providing exact numbers due to industry collaboration but emphasized the urgency and commitment to expanding heat networks.

• Acknowledgment of Broader Policy Criticism: Andrew Bowie did critique the broader energy policy of the Government but did not oppose the specific draft regulations being discussed. This shows a separation between the general political discourse and the issue at hand, where the draft regulations were supported.

• Consensus on Consumer Focus: Both the Minister and members from the Opposition agreed on the importance of keeping consumers at the heart of the energy market transition. Miatta Fahnbulleh emphasized this by saying, “It is great to see cross-party consensus on these important regulations.”

Overall, the session exhibited a high level of agreement and a shared goal of ensuring consumer protection and market fairness within the heat networks sector, with no significant disputes or oppositions raised against the draft regulations.