Draft Heat Networks (Market Framework) (Great Britain) (Amendment) Regulations 2025

Andrew Bowie Excerpts

Tuesday 2nd December 2025 General Committees

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

It is a genuine pleasure to serve under your chairmanship for the first time, Sir Alec. Congratulations on your appointment to the Panel of Chairs.

This statutory instrument amends The Heat Networks (Market Framework) (Great Britain) Regulations, building on the commitments made in part 8 of the Energy Act 2023—what an Act that was. Heat networks are largely unregulated, leaving consumers vulnerable to expensive heat network contracts with little to no control, since the decentralised heat and water networks are not governed by the same regulation as other utilities. The remaining components of those regulations come into force in January 2026, and along with the Energy Act 2023—with which I am incredibly familiar, having spent hours, weeks and months of my life as the Bill Minister for that legislation—they create the foundation of a regulatory framework.

The statutory instrument establishes a special administration regime for protected heat network companies, designed to maintain essential heating services to ensure continuity of service if a heat network operator becomes insolvent. It mirrors similar arrangements in other regulated sectors, such as electricity and gas. As the Minister said, the statutory instrument also gives Ofgem the powers to investigate disproportionate pricing on heat networks. What guarantee can the Minister give that that will adequately protect the 500,000 homes across the country, including some in my own constituency, that have very little power over the price they pay to be connected to a specific heat network?

The lack of regulation for heat networks has created challenges for consumers. The Energy Act addressed that by introducing a comprehensive regulatory framework for heat networks. Under that Act, Ofgem will become the statutory regulator for heat networks from January 2026. The Act also provided for the appointment of consumer advocacy bodies and ombudsman services, which began earlier this year, and it sets out a staged implementation timeline. From 27 January 2026, the full authorisation regime and special administration permissions will come into effect, marking a significant step towards a regulated market—something that we very much welcome.

Although the statutory instrument is a necessary step towards the regulation of heat networks as set out in the Energy Act, I take this opportunity to reiterate the genuinely desperate situations some of our constituents find themselves in as a result of unregulated decentralised heating, paying extortionate fees with no way out. There have been well-documented cases of consumers facing high cost and limited options under existing arrangements.

With the new framework live at the end of January, it is essential that Ofgem and the Government are fully prepared to deliver effective protections for consumers. I would be grateful if the Minister confirmed what steps are being taken to ensure that the special administration regime will effectively protect consumers, and that the amendments introduced by this statutory instrument are sufficient to ensure fairness. We do not, of course, intend to oppose the regulations, but I emphasise the need for robust implementation to ensure that heat network consumers receive the protections promised under the Energy Act.