Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government whether they are having discussions with Ofgem about (1) shifting its regulatory focus from gas to heat, and (2) considering cost recovery for heat networks through its upcoming price control framework.

Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)

Ofgem took on responsibility for regulating heat networks in January, and Ministers have been engaging regularly with Ofgem on how their role will develop.

Under current Ofgem rules, heat networks have a requirement to set fair and transparent prices. Whilst Ofgem have consulted on bench marking proposals in relation to these rules, they do not set the prices heat networks charge and heat networks are not governed by the energy price cap or regulated under Ofgem's network price control framework.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the potential for the heat network sector to drive economic growth and job creation.

Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)

We set out our long-term strategy for heat networks in the Warm Homes Plan, including our target for heat networks to supply 7% of heat demand by 2035, on a path towards meeting a fifth of demand by 2050. We estimate that delivering this ambition will result in 18,000 jobs supported in 2030, and attract £60 billion of investment in the UK by 2050.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what levels of finance and support are required through schemes such as the Heat Network Efficiency Scheme to bring legacy networks up to the Heat Network Technical Assurance Scheme standards.

Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)

The Heat Network Efficiency Scheme (HNES), which provides grants to heat networks to carry out performance and efficiency improvement works, has the potential to provide some funding to networks for works that will bring them up to HNTAS standards.

We are currently consulting on the implementation of HNTAS, and are actively encouraging the sector to provide cost data through the consultation, so we can strengthen our evidence base on financial support that may be required and ensure the final policy is proportionate and deliverable.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the case for the use of strategic heat network zoning to inform a phased and planned approach to gas grid decommissioning or repurposing.

Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)

We set out our long-term strategy for heat networks in the Warm Homes Plan, including our target for heat networks to supply 7% of heat demand by 2035, on a path towards meeting a fifth of demand by 2050.

This ambition is based on the heat network zoning model, which will use a standardised methodology to identify areas where heat networks are expected to provide the lowest cost, low carbon heat to buildings.

Policies such as strategic heat network zoning will help to inform the design of the future gas system, including any repurposing or decommissioning that takes place.