Featured post:
What is an open access heat network?

Posted by Ian Allan

The end of year update: Heat networks

Posted by Kirsty Lambert

Now in the final few days of 2017 and ready to break up for Christmas; it’s time to reflect on what 2017 has brought to the heat network industry. Our latest blog reflects upon some of the initiatives that have happened and what is worth keeping an eye on in 2018.

 

It has been a lively year filled with new initiatives that will affect our industry; with the introduction of the ADE Task Force, HNIP funding allocated and the first release of data from the Duty to Notify legislation, it’s fair to say that it has kept our marketing team on their toes to make sure you get the information you need about heat networks.

Heat Network Regulations

The Department for Business Energy and Industrial Strategy (BEIS) announced in autumn that 2018 will see the introduction to the feasibility consultation along with updates to the Heat Network (Metering and Billing) Regulations. The announcement included an update on how many heat networks have notified BEIS, along with updates to the final policies of the Law that will be put in place later in the New Year. To read the updates to the Regulation, click here.

Clean Growth Strategy

With the UK committed to reduce greenhouse emissions by at least 80% by 2050; a number of initiatives such as the smart energy plan and improving the efficiencies in industry have been put in place. The Clean Growth Strategy announced late 2017; defined by the Government as ‘growing our national income while cutting greenhouse gas emissions’ core role is to help deliver that promise. Its purpose being to increase productivity, create jobs, boost earning power for people across the nation and help protect the climate and environment upon which we and future generations depend. To read more on how this will play a role in shaping heat networks click here.

BEIS report

The Clean Growth Strategy isn’t the only place we can see heat networks being one of the answers to carbon reduction; BEIS has adopted ‘Clean Growth’ as one of the ‘grand challenges’ facing the UK in their most recent Industrial Strategy White Paper. The strategy highlighted five priority areas in Clean Growth that will help transform construction techniques and energy making energy intensive industries competitive.   

CMA report

On 7th December the Competitions Market Authority (CMA) launched a market review into the heat network industry. The comprehensive market study will investigate whether households are getting a good deal from heat networks due to a large proportion of customers at risk of paying too much or receiving a poor quality of service. To find out more on the actions of the report click here.

Fixing the ‘broken’ housing market

A key focus at the Tory Party Conference was the announcement of Government plans to spend a further £2 billion on a ‘new generation’ of Council houses and affordable homes for rent. But how will this impact the already inflated housing need across Britain?  It is a cash injection that has been welcomed by Housing Associations and Councils across the UK but criticised by housing charities and other parties. So, what are the facts? Read our blog post to find out more.

What does this mean for heat networks?

Well, we can definitely expect the spotlight to remain on heat networks in 2018, and for it to be scrutinised by the CMA during their investigation; however this could only bring positives to customers and scheme owners of heat networks. We think that the new initiatives will play an important role in improving best practices and the joined up approach to how heat networks are designed, maintained and operated. And consequently improve the value and quality of heat back to the final customer.

Key takeaways

  • 2018 will be an important year for the heat network industry
  • The Heat Network Regulation is expected to be updated with the feasibility tool launched early in the New Year
  • A number of new initiatives from Government have expressed how heat networks can be a sustainable answer for high density areas
  • The CMA is due to carry out a market review on the heat network industry to ensure that households are getting a fair deal from heat networks

Heat Network Regulations Download

Kirsty Lambert

Business Development Director at Switch2

A skilled director and leader with both operational and commercial experience, Kirsty has over 10 years’ experience in the community and district heating industry.

Add a comment