Blog: Friday 29th November 2024 - Womble Bond Dickinson, Corporate Partner

I'm dreaming of a green Christmas: the gift of heat networks and their role in decarbonisation

As winter draws in, our minds start to switch to a cosy Christmas at home. However, heating accounts for 18% of the UK's carbon emissions. It's therefore time to reflect on how we can have a greener Christmas - heat networks may be part of the answer.

Heat networks can reduce the greenhouse gas emissions of heating and are a key part of the Government's net zero policy. They provide heat through insulated underground pipes to a number of properties from a central heat source. They are one of the most cost effective ways of reducing carbon emissions from heating as they can utilise low carbon heat sources which would otherwise go to waste. This could be from rivers, sewage, the ground or energy from waste.

Heat network zones are comin' to town

As part of the solution to decarbonise heat in the UK, the Department of Energy Security and Network Zero (DESNZ) proposes to create a number of heat network zones. Heat network zoning is a policy whereby zones are designated across the country. Once a zone is established, most large buildings within the zone will be obliged to connect to a heat network. This will impact Local Authorities in a number of ways:

Local Authority as a Customer: Local Authority buildings could be obliged to connect to a heat network.

Local Authority as a Zone Coordinator: It is anticipated that Local Authorities will be appointed as zone coordinators. Zone coordinators will have responsibility for enforcing regulatory requirements within zones including the requirement to connect.

Better to give than receive

OFGEM and DESNZ have sought to get ahead of the Christmas post and issued recent consultations. OFGEM published an independent consultation on the authorisation and regulatory oversight of heat networks in the UK, outlining how it intends to develop regulations for heat networks which protect consumers and support investment and market growth (Heat networks regulation: authorisation and regulatory oversight - Ofgem - Citizen Space).

OFGEM also held a joint consultation with DESNZ on consumer protection requirements. This sets out the regulatory protections in place for heat network customers. OFGEM is giving anyone with an interest in heat networks the gift of sharing their views on consumer protection requirements (Heat networks regulation: implementing consumer protections - GOV.UK).

As we prepare for festive celebrations, we should welcome heat networks with holiday cheer and reflect on how they can contribute to a greener Christmas. Womble Bond Dickinson is a market leader in the provision of legal advisory services on heat networks, and has advised on several high profile projects across the country, including in Solihull and Newcastle. Please do give us a call should you have any requirements or queries in relation to this topic.

 

Andrew Hirst, Partner and Shumona Hussain, Trainee, Public Law and Projects, Womble Bond Dickinson