Recovering the costs of heat networks regulation

This consultation seeks views on the government’s proposed approach to recovering the costs of heat networks regulation.

We propose that Ofgem and Citizens Advice’s total ongoing costs of regulating and performing consumer advocacy functions in the heat networks, gas, and electricity markets should be spread evenly across heat network, gas, and electricity consumers.

The consultation also sets out considerations and seeks views on the design and operation of the proposed approach to cost recovery, which will be administered by Ofgem as future heat networks regulator.

The consultation document includes an analytical annex which provides an overview of our latest estimates of the cost of regulating the heat networks market and new estimates on the associated consumer-level bill impacts of the options assessed.

The consultation will be of interest to the heat networks industry and those with a broader interest in the decarbonisation of heat, including:

• industry trade associations
• energy supply companies
• electricity and gas distribution network operators
• local authorities
• housing associations
• consumer advocacy groups

Read the BEIS consultation privacy notice.

Please do not send responses by post to the department at the moment as we may not be able to access them.