Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what regulations currently apply to district heating schemes to protect consumers; and whether he is considering introducing further regulations of that nature.

Until now, there have been no sector specific protections for heat network consumers, unlike for people on other utilities such as gas, electricity or water. However, heat networks consumers have had some protection through The Heat Network Metering and Billing Regulations 2014 (HNMBR). HNMBR 2014 (as amended in 2015 and 2020) contain requirements related to the notification of heat networks and to the metering of heat and cooling as well as billing for customers on heat networks.  Heat meters support fair and transparent billing based on actual consumption and can drive energy efficiency savings and cost reductions.

We recognise the need to ensure heat network consumers receive a fair price for their heating. That is why we are committed to legislating within this parliament to regulate the heat networks sector and in December we announced that Ofgem will take on the role of regulator. We will therefore give Ofgem new powers to regulate prices in this sector as a matter of priority. This will enable equivalent protection for domestic heat network customers as well as ensuring heat network operators are securing good purchasing deals for their consumers. This will mean that consumers are charged a fair rate for heating whilst encouraging investment in heat networks.