Source · Select Committees · Business and Trade Committee
Recommendation 3
3
Paragraph: 32
To successfully decarbonise domestic heating in time to deliver net zero by 2050, the Government...
Recommendation
To successfully decarbonise domestic heating in time to deliver net zero by 2050, the Government must provide clear, strategic direction and guidance. The Government must now focus on providing a coherent policy environment that encourages policy consistency and certainty in the transition to low carbon domestic heat.
Paragraph Reference:
32
Government Response
Acknowledged
HM Government
Acknowledged
this Parliament and will do so at the earliest possible opportunity. In December, we published the Government response to the Heat Networks Market Framework consultation which sets out our proposals for regulation. We announced that we will appoint Ofgem as the heat networks regulator for Great Britain. In this role, heat network consumers receive a fair price, reliable supply of heat and transparency of information. Under the regulatory framework, the BEIS Secretary of State will be given powers to introduce a price cap to the market in the future to protect consumers. Regulation will also give Ofgem powers to investigate and intervene on networks where prices for consumers appear to be disproportionate compared with systems with similar characteristics, or if prices are significantly higher than those consumers would expect to pay if they were served by an alternative and comparable heating system. Finally, Ofgem will be given powers to set rules requiring heat networks to publicly disclose sufficient information for the consumer to understand how much they are paying, including but not limited to, their fixed charges, tariffs, and unit rates, and provide clear explanations about how prices are set and how heat network consumers are billed.