Energy Bill [Lords]

Elliot Colburn Excerpts

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Elliot Colburn (Carshalton and Wallington) (Con)]

In the short time available, I want to focus on an aspect of the Bill that has not yet been discussed in this debate: the new regulations on district heat networks. I am very grateful that the Government have listened to concerns—not just from me, but from colleagues across the House who have district heat networks in their constituencies—about just how damaging those networks’ unregulated nature can be. That can be seen on the New Mill Quarter estate in my constituency, which I have raised a number of times in this place. I will outline briefly why this new regulation is so needed and why it is welcome, but also where I would like the Government to look into potentially going further.

To give a quick bit of context, the New Mill Quarter estate in Hackbridge is heated by a series of insulated pipes that stretch from the incinerator in the north of the constituency across redeveloped farmland to heat those homes, but it has been bedevilled by problems. It is not even online yet: it is currently being powered by a back-up gas boiler system, and it has suffered a number of blackouts and two call-outs from the London Fire Brigade and, practically, seems to have had a huge failure. I do not have time to go into that subject now, but I draw Members’ attention to some of my other contributions in the House on it.

Blackouts are probably the No. 1 reason why regulation is needed. The reliability of district heat networks is a massive problem, and not just in New Mill Quarter in Hackbridge; it has happened across other estates in London, such as Oval Quarter in Lambeth, New Festival Quarter in Tower Hamlets and multiple estates in Southwark—no guessing which party runs those local authorities.

Customer satisfaction is lower for customers on district heat networks, rather than gas boilers. A 2017 survey conducted by the Department for Business, Energy and Industrial Strategy found that district heat network customers were much less satisfied with their service than those with other forms of energy.

Bills are another big issue. The cost of living is a massive concern for all our constituents right now, and the No. 1 concern that comes up time and again when I talk to Carshalton and Wallington residents is meeting the cost of their energy bills. We need to empower Ofgem to force the pricing model of district heat networks to be comparable to the market average. That is incredibly important, and I am grateful to the Government for looking at that in detail and taking steps in that direction. The residents of New Mill Quarter are facing energy bills higher than the market average. They are not protected by, for example, the energy price cap, because it is an unregulated piece of heating. I very much welcome the Government’s measures, which will provide a lot of reassurance not just to residents of New Mill Quarter, but to others living under a district heat network.

The final thing that I welcome the Government taking action on is simply the monopolistic nature of heat networks. Customers cannot change and go to a new supplier, because a district heat network forces those living within it to use that heat network. They cannot shop around for a better deal and they cannot rely on the market—this is important to me as a free-market Conservative—to drive down prices while driving up reliability. Regulation therefore is so important, and I am grateful that the Government are taking steps in that regard.

One area I would like the Government to look at further is future-proofing district heat networks. Many of them are future-proofed by their very nature, but for those that are heated by incinerators, such as the one in Hackbridge, I can see a glaring problem coming down the line. The Government outlined in their waste minimisation strategy that they want to phase out incineration as a form of dealing with waste. All of us across the House support the reduction and stopping of incineration as a form of dealing with our waste. Incineration is only slightly better than landfill—only very slightly. It is not a net zero-conducive form of waste management, as we rely on creating waste to feed it.

The problem we can see in estates such as New Mill Quarter is that we will have an incinerator that becomes less and less needed as the years go on. We then have two options: either we have to import waste to feed the thing and keep the heating going, which obviously is not conducive to any net zero ambitions; or the thing has to be turned off, and what happens then? That entire estate was new build, built specifically with the infrastructure to deal with the incinerator. I might be long dead by the time it happens, but the problem is coming, and we should not leave it to a future generation to solve. We should look at future-proofing that now.

[David Duguid]

I am interested in what my hon. Friend is saying about heat networks and wonder whether he might agree with something I have learned just recently. It is a proposal from a stakeholder who deals in renewable energy, including hydrolysis to create hydrogen. That generates a lot of heat, and their suggestion is that we declare heat as a utility in a wider form. Would that help his purposes?

[Elliot Colburn]

My hon. Friend is absolutely right, and it relates to a point that a number of colleagues have made today: we cannot mandate the use of one technology or a very small number of technologies; we need to have that collective option. I urge the Government to err on the side of caution because, under their own ambitions, district heat networks could account for something like two fifths of the UK’s heat provision. Given the problems that have existed in Hackbridge and across multiple estates, and not just in London, I urge the Government not to put all their eggs in one basket by relying on district heat networks as a singular answer. I agree with my hon. Friend. There are plentiful supplies of renewable energy out there. We need to make sure that we are neither mandating nor preventing the use of any one. We should be using all those potentials to reach our net zero ambitions and provide more domestic energy security.

I very much welcome the measures set out in the Bill and urge colleagues to support it. It will certainly have my support tonight.