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15 March 2023

Heat network support announced in Budget

Today the Chancellor announced in the Spring Budget that through the Energy Bills Discount Scheme (EBDS) the government will provide heat network customers with a with a higher rate of relief that will ensure they do not face disproportionately higher bills when compared to customers in equivalent households who are supported by the Energy Price Guarantee (EPG).

The target rate for Heat Network EBDS will be 7.83p/kwh for gas, with separate rates for electricity. This is estimated to be worth up to £380 million in total, £860 for the average heat network customer.

Eligibility

Eligible heat network suppliers with domestic customers will be required by law to apply for a specific higher EBDS rate through a digital application portal which will open in April. Successful applications will result in an eligibility certificate for qualifying heat networks being issued to both the heat supplier and the energy supplier. 

This will help energy suppliers identify which heat networks will need to receive the higher heat network EBDS rate. Heat suppliers will once again be obliged by law to pass this discount to customers in a just and reasonable way.

Webinar and Q&A session

At 10am on Thursday 23 March we will provide an overview of how the scheme will work and take questions from attendees. Please sign up via the button below.

Best wishes,

Heat Networks Team

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Department for Energy Security & Net Zero

1 Victoria Street, London, SW1H 0ET, United Kingdom
gov.uk  |  heatnetworks@beis.gov.uk  |  020 7215 5000

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