Regulating Heat Networks: An Appraisal of the Energy Act 2023

Heat networks have the potential to deliver up to 20% of heat to homes in the UK by 2050 and are able to deliver significant reductions in carbon emissions contributing substantially to the UK’s 2050 net zero target. However, for many years the sector has been unregulated which means that some consumers of heat networks have been paying high prices for heating systems which may have been poorly constructed and which they do not understand. This analysis identifies three key problems that have arisen from a lack of regulation in the sector: higher prices for consumers, a lack of transparency and understanding of heat networks, and design and build problems, which have all served as barriers to realising low carbon heating in the UK. The recently enacted Energy Act 2023 will be analysed to determine the extent to which it will resolve these problems.