District Heating: Regulation

Department for Energy Security and Net Zero written question – answered at on 21 November 2024.

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Photo of Uma Kumaran Uma Kumaran Labour, Stratford and Bow

To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to regulate communal heating systems.

Photo of Miatta Fahnbulleh Miatta Fahnbulleh Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Department is introducing heat network regulation in January 2026 which aims to provide consumers with comparable protections to existing gas and electricity regulations.

Ofgem will be appointed heat network regulator, and they will administer the Market Framework which will introduce consumer protections and a licensing regime for operators. Ofgem’s powers will include the ability to investigate unfair pricing and ensure that consumers’ heat supply is maintained if their supplier goes out of business.

Regulatory oversight will be supplemented by statutory redress through the Energy Ombudsman who will have the same powers to hear complaints and make legally binding decisions as they do in gas and electricity markets. Citizens Advice and Consumer Scotland will also be empowered to provide advice and advocacy on behalf of heat network consumers.

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