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Only small proportion of housing providers have registered heat networks ahead of July deadline
Only a small proportion of housing providers have registered their heat networks online ahead of a government deadline next month, an expert has warned.
The government is offering a discount on commercial energy prices for heat network customers until March 2024. Housing providers have to alert residents that they are benefiting from the discount. Fines for non-compliance will be up to £5,000 per heat network.
Regardless of whether providers will benefit from the discount or not, they are required by law to register all their heat networks before 25 July via an online portal.
However, Nicholas Doyle, director and co-founder of Chirpy Heat, told Inside Housing that, in his experience, only a small proportion of housing providers have registered their schemes so far.
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He said: “There were significant changes on the details of the support programme and it’s a big challenge for the sector.
“We don’t yet have firm numbers across the sector on who has submitted their registration, but based on housing providers we have worked with across UK – which represent something like 20% of heat networks – only a small proportion have so far registered their schemes and time is running out.
“It takes time to pull together the required heat network and utility meter information, cross check this and then upload to the government portal alongside evidence and signed letters from senior managers. Housing providers need to be starting this exercise ASAP and not waiting until the 11th hour.”
According to Chirpy Heat, around 50% of heat networks are managed by housing providers, that typically have up to 10% of their portfolio on a heat network.
The Department for Energy Security and Net Zero (DESNZ) estimates it will take 30 minutes to enter each heat network into the portal. They are developing a bulk upload function, but this will not be available until mid-July.
The portal will remain open all year so any new heat networks can be added on and benefit from the discount.
A DESNZ spokesperson said: “Should heat suppliers fail to apply by 25 July, we will consider the total number of networks that they operate prior to any enforcement action taking place.
“In the meantime, we urge all heat suppliers to apply as soon as they can to ensure that discounts can be passed onto consumers as quickly as possible.”
Heat networks in the UK are set to be regulated by Ofgem next year for the first time, in another significant change for the sector.
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