In 2020, the OPSS stated that the Regulations are a building block to developing a legislative Heat Network Market Framework – which before the Coronavirus pandemic, was due to be introduced in 2022. However, this did not occur.
In March 2023, DESNZ published an ‘Energy Bill Policy Statement’, relating to the ‘Heat Network Market Framework’. Within this statement, it was further reiterated that the Energy Bill outlines plans to create a market framework for the heat networks sector.
A market framework would be beneficial as it is recognised by DESNZ that the heat network sector lacks regulation (besides the HNMBR), which hinders consumers, investors, and businesses throughout the UK.
The Bill outlines the groundwork for the development of this framework, which aims to result in the regulation of the market (which includes consumer protection, carbon emission limits and technical standards on networks), the assignment of a heat networks regulator and more.
To read more on the Bill, click here.