Issue link: https://fhpublishing.uberflip.com/i/1189322
REGULATION F ollowing calls from industry, at the end of 2018 both Westminster and the Scottish government announced that they would introduce regulation to the heat networks market. It's nearly a year later, so where are we now? Since then, government and industry have been beavering away through working groups, pulling together feedback from consultations and discussing the nuances of the proposed regulatory systems. In Scotland, this has culmi- nated in the announcement of a forthcoming Heat Networks Bill. From Westminster, we were expecting to see the ‚ rst of two consultations this side of Christmas, but with recent General Election announce- ments and the possibility of a new government, early 2020 is a more realistic estimation. When this consultation is published, it will collate feedback on the New regulations planned for heat networks will protect consumers and reduce risks for developers, explains Charlotte Owen, policy offi cer at the Association for Decentralised Energy – in part of our Utility of the Future series NETWORK / 22 / DECEMBER 2019 / JANUARY 2020 outcomes for consumers in the absence of regulation, with the average domestic heat networks consumer paying £100 less than those with individual gas boil- ers. Industry also established the voluntary consumer protec- tion body, Heat Trust, back in 2015. However, regulation will provide a backstop to ensure that all heat network consumers have a positive experience. Secondly, to allow the market to deliver on the government's ambitions for 17 per cent of domestic heat to be met through heat networks by 2050, regula- tion and policy must address the critical issue of demand risk. This is the risk associated with uncertainty around whether the timing, number of customer connections, and associated pro‚ le of heat demand will result in a sustainable, com- mercially viable network. At pre- sent, investing in heat networks overarching format of regulation and a proposed market frame- work, with a further consulta- tion on the detail to follow later in 2020. Why do we need regulation? Regulation of the heat networks market must achieve two things. First, and most importantly, regulation must protect consum- ers and ensure that they receive positive outcomes. The market has been striving to ensure good Time to regulate heat networks