Regulation for heat network market welcomed by industry
Industry has welcomed a recommendation from the Competition and Markets Authority (CMA) for regulation of the heat network market. The Heat Network Task Force (launched by the Association for Decentralised Energy ADE) has been calling for regulation for some time.
The CMA is recommending that Ofgem becomes the new regulator and introduces the same level of consumer protection for heat network customers as those of the gas and electricity sectors. This would include higher levels of transparency on contracts between heat network operators and customers, including clarity for customers about their payments and tariffs.
Ian Allan, head of R&D for Switch2Energy, a member of the Task Force, says: “The CMA’s recommendation is excellent news for the heat network sector. There is an urgent need to decarbonise the UK heat supply and heat networks have a critical role to play. With regulation we can make sure that community and district heating schemes achieve their full potential as a reliable source of affordable, low-carbon heat.”