Blog: What is the Energy Act 2023 & how does it impact UK Heat Networks?

John Maslen, our Scotland based Network Development Manager, discusses.

The Energy Bill 2023 received Royal Assent on 26 October 2023 and has been passed into law. It contains a number of provisions that will have a significant impact on all operational and future UK heat networks in 3 main areas:

Regulation: The Bill introduces a new regulatory framework for heat networks in England, Scotland, and Wales to ensure that heat networks are developed and operated in a safe and efficient way. This will include Ofgem being appointed as the regulator for heat networks, and the introduction of a licensing regime for heat network operators. Conditions and regulations will include provision for fair prices and transparent information for consumers, a high quality of service, and minimum technical standards and carbon limits.

Zoning: The Bill gives the government the power to designate heat network zones to accelerate their growth. Within these zones, local authorities will be able to require certain types of buildings to connect to heat networks, and to require waste heat to be connected to heat networks.

Pricing: The Bill also includes provisions to ensure that heat network customers are protected from excessive pricing. Heat network operators will be required to pass on discounts from the Energy Bill Relief Scheme to their customers, and they will also be required to explain how they intend to reduce prices or hold them down if their prices are already low.

Email John to see how Ener-Vate can support you with the implications of the Energy Act 2023 - johnm@ener-vate.co.uk