A heat network is a mechanism for supplying heat and hot water to a home. Heat networks can be either communal (e.g. a central boiler), or district systems (larger networks linking multiple buildings. On our journey to net zero, heat networks will be a critical technology. Heat networks are ‘heat source agnostic’ and therefore are relatively easy to decarbonise by changing the heating source (e.g. changing from gas to a heat pump). They also benefit from economies of scale and a greater variety of heat sources than traditional domestic heating (such as waste heat or geothermal).

But to ensure heat networks are able to play this critical role, they will need to improve, expand and decarbonise – with the government estimating that 20% of all heat demand will need to be met by them in 2050. So, over the next year, a wholescale overhaul of their regulation is planned, with OFGEM becoming the statutory regulator – and housing associations need to prepare.

All heat network operators (including housing associations) will need to secure authorisation from OFGEM to operate them and abide by a range of consumer protection regulations. To improve and prepare to decarbonise existing heat networks, new technical standards will also be set that will likely require housing associations to invest to upgrade many of their current heat networks. To drive expansion, the government is also introducing ‘zoning’ which will require both new and existing homes to connect up to a local heat network in certain areas.

To provide housing associations with the latest insights on how to implement and influence this complex forthcoming new regulatory regime, we are proud to have Dave Newton OBE from the Department of Energy Security and Net speaking at our Quality Homes Conference. In the meantime, check out our webpage on heat networks and get in touch with myself with any questions or thoughts.