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ARTICLE · 19 OCTOBER 2023

Heat Networks: Regulating The Sector

Gowling WLG
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Under the Energy Security Bill (the "Bill"), the Government is proposing to bring in regulation of district heat networks to ensure that consumers are receiving best value for money.

United KingdomEnergy and Natural Resources
James Stanier
James Stanier
Russell Evans
Russell Evans
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Under the Energy Security Bill (the "Bill"), the Government is proposing to bring in regulation of district heat networks to ensure that consumers are receiving best value for money. This follows on from a recommendation by the Competition and Markets Authority which found that some customers using heat networks were experiencing worse outcomes than the average consumer including high prices and frequent outages. The Government is proposing the implementation of heat networks zoning to aid the rollout of heat networks. On 1 September 2023, the Government published its proposals under the Bill.

What is being proposed?

Regulation of heat networks

A heat network is a distribution system of insulated pipes that delivers heat from a central source and delivers it to domestic and non-domestic buildings. Under the Bill:

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