Recommendation 4

HM Government Acknowledged

Whilst legislating for heat is devolved to Scotland, consumer protection for heat networks is a reserved matter across Great Britain. The Heat Networks Market Framework (HNMF) will therefore introduce consumer protection rules in England, Scotland and Wales, and Ofgem will enforce these rules. We are working closely with the Scottish Government to develop consumer protection rules which ensure heat network consumers across Great Britain receive adequate levels of protection. In its Draft Heat Networks Delivery Plan, the Scottish Government also stated its preference for Ofgem being the regulator under the Heat Networks (Scotland) Act 2021. with the Scottish Government and is very similar to the Scottish Government’s approach, however, the main difference in the regimes relates to our approach to heat network zoning. In Scotland, legislation requires each scheme to receive individual consent from a central body before it is allowed to develop. We are looking at a different approach for zoning in England, where local authority decisions are more central to heat network development. This flexible approach is more appropriate since the larger potential for heat network development in England means it would be less feasible for one body to approve the development of each project. We are working closely with Scottish Government to share lessons on the development of zoning policies in both countries.