Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the initial and recurring fees charged by Ofgem for registration of a heat network; and what assessment they have made of the potential effects on leaseholders and tenants in small blocks of flats.
Ofgem is not charging a fee for registration and will not charge any fees from authorised heat networks until 2028 at the earliest.
Ofgem is initially recovering the costs of heat network regulation through license fees paid by certain gas and electricity licensees. After this time, the cost of regulation will be spread across the gas, electricity and heat network sector.
In April Ofgem consulted on how they will recover the portion of regulatory costs falling on Heat Networks. This included proposals for smaller networks, how the proportion of fees for each organisation should be calculated and how often they should be collected. The link to the consultation can be found on Gov.UK and a response will be published in due course.