April Newsletter: Get ready for the Energy Bills Discount Scheme

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20 April 2023

Photo credit: Pinnacle Power

Following the 'machinery of government' changes earlier this year, it has been all go in the Department for Energy Security and Net Zero. This was highlighted by the publication last month of 'Powering Up Britain' - our ambitious plans to scale up affordable, clean, homegrown power and build thriving green industries.

The measures announced included a clear demonstration of the government's continued support for low carbon heat networks. Capital support will be extended to 2028 to facilitate the continued growth of low carbon heat networks, including £220 million for the Heat Network Transformation Programme over 2025/6 and 2026/7.

This is excellent news as the Green Heat Network Fund (GHNF) has proved very popular and the pipeline of prospective applicants exceeds the current fund size. This additional funding - available over a longer period - provides greater certainty into the medium term that continued capital support will be available. We will be reviewing the options - including through GHNF - for how best to utilise this funding to support the growth of the sector. 

In addition, we have been working across the department to prepare for the launch of the Energy Bills Discount Scheme. Announced in the budget in March, the scheme aims to ensure that customers on heat networks do not face disproportionately higher bills when compared to customers in equivalent households who are supported by the Energy Price Guarantee.

Yesterday we published more information about the heat networks support and what information heat suppliers will need to provide as part of registering to receive the discount from their energy supplier. We will follow up with another message once the portal is open.

And finally, we'd like to take this opportunity to introduce ourselves as the new Deputy Directors for Heat Networks on Policy & Regulation. We will be taking on the role in a job-share capacity and have joined the department from the UK Infrastructure Bank where we were vocal advocates for heat networks! We have both worked for a number of different government departments before and have backgrounds in climate/environment policy. 

We look forward to hitting the ground running and meeting many of you as we settle into the role in the coming months.

Best wishes,

Sam Massey (she/her) and Ludo Tolu (they/them)

Deputy Directors, Heat Network Policy and Regulation

Get Ready for EBDS!

The portal for the Energy Bills Discount Scheme will open next week. If you are a heat supplier and need to apply make sure you have checked out the guidance on gov.uk so that you know the information you'll need for your application.

Powering Up Britain

Earlier this month we published Powering Up Britain in which we confirmed that capital support for heat networks will be extended to 2028 including £220 million for the Heat Network Transformation Programme over 2025/6 and 2026/7.

Energy Bill to move onto the House of Commons

The Energy Bill is about to finish its Parliamentary passage through the House of Lords, after which it will move onto the House of Commons. The Bill contains key measures on heat network regulation and zoning and we will keep you updated on its progress through Parliament via this newsletter.

Latest project pipeline over £2bn again

The latest Heat Networks quarterly pipeline document has now been published. This report covers data for Q4 of 2022 (Oct to Dec). The pipeline now equates to a Capex total of almost £2.3 billion, of which £315m is under construction. Just over £1.5 billion of it relates to Heat Network Investment Project and Green Heat Network Fund projects for which applications have been made.

Heat Training Grant provider appointed

A Memorandum of Understanding has now been signed with the Midlands Net Zero Hub to deliver the Heat Training Grant. The Heat Training Grant will offer grants of up to £500 to trainees on training courses that focus on in-demand skills in the Heat Network sector. The application stage for course providers is expected to open in June. Photo credit:  Veolia UK

New build heat networks standards (Part L) published

Following consultation earlier this year, the Department for Levelling Up, Housing and Communities published amendments to Part L of the Building Regulations with respect to district heat network minimum standards. The amended guidance removes the primary energy minimum standard for dwellings and buildings other than dwellings connecting to district heat networks. The CO2 emission minimum standard is retained. (Photo credit: SSE)

Template Financial Model updated

Following feedback from users we have made a few minor calculation changes to the template financial model published last year. The changes have been reviewed by Operis who were contracted to review the template model and are listed in the change log of the model.

BHIVE extended for another two years to 2025

BHIVE - a Dynamic Purchasing System that allows public sector users to engage with a panel of experienced, qualified investors and lessors - has been extended by two years to 31 March 2025. If you're interested in finding out more please check out the guidance that provides helpful insight into conducting outcomes-based procurement.

Ofgem need your views on their digital products

Ofgem has released an anonymous survey to gain insights to help develop the IT system for Heat Network regulation.  The survey should only take a few minutes to complete and will help them create a service for registering heat networks and making compliance with the regulations as easy as possible. The survey will be open until 31 May.

Dates for your diary

• 26 April - Heat Networks Efficiency Scheme application webinar
• 19 May - Heat Networks Efficiency Scheme Round 2 closing date

ICYMI...The Green Finance Strategy

The Government also published the 2023 Green Finance Strategy last month. This document sets out how we will harness the UK’s world-leading financial services sector to support our climate and environmental objectives, and emphasises the key role that private sector investment will play in the growth of low carbon heat networks.

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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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