SFHA responds to latest consultation on heat network regulations
The UK Government and Ofgem have been consulting on various aspects of the new regulatory framework for heat networks.
The UK Government and Ofgem have been consulting on various aspects of the new regulatory framework for heat networks, with the latest consultation focussed on implementing consumer protections.
SFHA’s response welcomes the overall ambition of ensuring these consumers receive a fair price, a reliable supply of heat, and transparency of information. However, as raised in our response to the 2023 consultation, we remain concerned that the extent of the regulation proposed may have a negative impact on the development of the sector, with an overly onerous regime acting as a barrier to scaling-up and potentially undermining the viability of schemes.
While the number of households connected to a heat network is still relatively small in Scotland, they are more prevalent in social housing than in other tenures. RSLs will therefore be disproportionately impacted and regulations must take into account the various financial pressures already facing the sector in its efforts to tackle the housing emergency, the climate emergency, and poverty and inequality.
We welcome the proposals which recognise the particular challenges for small and not-for-profit heat networks as well as the need to avoid the duplication of regulations given the existing regulatory frameworks already in place for social landlords. However, we remain concerned that some of the requirements could be resource intensive and costly for our members to implement.
Many of the proposals are to be subject to further development and guidance and we would like to see continued consultation with social landlords as these progress. Any SFHA members who would like to be involved in this work should contact Cassandra Dove (cdove@sfha.co.uk). We will also continue to keep members updated as part of our quarterly Energy and Net Zero forum.