Commons Sense

House of Commons · Westminster Hall

District Heat Networks

28 April 2021 · 6 other contributors · 8,023 words

Opened by Elliot Colburn Con Carshalton and Wallington

Responding minister: Anne-Marie Trevelyan

EnergyEnvironment

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Elliot Colburn raised concerns about district heat networks in Westminster Hall. A government minister responded.

Key points

  • Residents in the New Mill Quarter development experienced nearly 20 hot water or heating outages over a year, some necessitating fire brigade intervention.
  • The pricing model for district heat networks in the development is significantly higher than alternative energy options, and there are no available options for residents to switch providers.
  • Anne-Marie Trevelyan committed to regulating the district heat network market within this Parliament, including introducing consumer protection rules and access to an independent redress scheme.

Key requests to Government

I urge the Government to introduce tougher regulation and consumer protections for district heat networks, including a statutory regulator, compensation packages for outages, and fairer pricing models. Additionally, consider whether monopolistic practices in these networks are appropriate given future waste management policies.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Elliot Colburn Con Carshalton and Wallington

Residents in the New Mill Quarter development have faced numerous issues with district heat networks, including unreliable heating systems leading to multiple outages, high energy bills, lack of consumer protection, and monopolistic practices. Residents experienced nearly 20 hot water or heating outages over a year, some requiring fire brigade intervention. The pricing model is also significantly higher than alternatives, and there are no options for residents to switch providers.

Other contributors (6)
  • Alan Brown SNP Kilmarnock and Loudoun

    He raised concerns about the lack of future-proofing in district heating projects and highlighted the need for a robust response from the Minister. He noted that while gas boilers are convenient, they contribute to fuel poverty and carbon emissions. Alan Brown also questioned the feasibility of doubling heat pump installations by 2028 without proper funding strategies. Additionally, he emphasized the importance of regulatory frameworks and consumer protections in district heating networks. The work on the regulation framework seems well advanced, so can she give us a timescale for when legislation will come forward? Raised issues regarding high prices and service outages experienced by constituents on district heat networks, advocating for improved regulation and consumer protection measures.

  • Alan Whitehead Lab Southampton, Test

    Mr. Whitehead discussed the potential of district heating for decarbonisation and efficiency, citing examples from Denmark and his own city of Southampton with five district heating schemes. He acknowledged concerns about poorly managed existing schemes and criticised past government approaches to regulation as insufficient. He called for a clear plan for universal regulatory framework after the consultation period.

  • Janet Daby Lab Lewisham East

    Ms Daby highlighted the importance of district heat networks for green energy but criticised their current inefficiency and high costs. She mentioned that residents in Catford Green are paying more money for less energy, with standing charges ranging from £30 to £40 per month even when flats are empty. She called for regulation by the Government similar to other parts of the energy industry. Contributed with concerns about the need for stronger consumer protections, Janet Daby mentioned difficulties faced by residents due to poor quality heat network services in her constituency.

  • Matthew Pennycook Lab Greenwich and Woolwich

    Pennycook highlighted the need for statutory regulation to protect heat network customers, citing a lack of progress since first raising concerns in 2016. He argued that inadequate consumer protection undermines efforts to decarbonise heat and expressed dissatisfaction with voluntary measures like the Heat Trust. Pennycook stated that many customers face unreasonably high tariffs, price variations, and poor service quality. Joined in discussing concerns about district heat networks, Matthew Pennycook raised issues faced by residents in Greenwich and called for better regulation to protect consumers from high prices and service outages.

  • Nusrat Ghani Con Sussex Weald

    Reminded hon. Members of changes to normal practice for hybrid arrangements, including visibility and mask-wearing requirements.

  • Phil Wilson Lab Sedgefield

    Called for the Heat Network (Metering and Billing) Regulations 2014 to be applied universally across all heat network systems, advocating for better protections and transparency for consumers.

Government Response

Anne-Marie Trevelyan

Acknowledging concerns about poorly managed district heat networks, Anne-Marie Trevelyan committed to regulating the market within this Parliament. She outlined plans to introduce consumer protection rules, including standards for service quality, compensation for outages, and access to an independent redress scheme and a consumer advocacy body. The minister also highlighted existing schemes such as the Heat Trust and BEIS's encouragement of heat network operators to register with it. Stressing the need for clean and reliable heat at affordable prices, she detailed plans for the green heat network fund and operational performance improvements in existing systems. She emphasised that regulation would deliver positive outcomes for consumers and promised further details later this year.

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