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Baroness Bloomfield of Hinton Waldrist (Con)

Speaking in the House of Lords on 15 December 2025

Debate

Heat Networks (Market Framework) (Great Britain) (Amendment) Regulations 2025

Contribution

My Lords, I thank the Minister for setting out the purposes of these regulations. We welcome them, so I shall not overburden him with questions beyond those already asked by previous speakers. It is somewhat frustrating that I did not spot the error in the amendments to Regulation 56 in the current Regulation 10; I must do better. These measures represent another step towards the full regulatory framework for heat networks that consumers have waited too long to see. From January 2026, the full authorisation regime and the special administration powers are due to come into effect—a significant milestone that we welcome wholeheartedly. As the Minister said, we must be clear about the situation facing many people with heat networks. Years of unregulated, decentralised heating have left households paying high and unpredictable costs, receiving confusing bills and unable to switch supplier or seek meaningful redress. Citizens Advice has warned that, for some, bills have doubled or even tripled, which is simply untenable. Therefore, while we support these regulations, their success will depend entirely on effective implementation. A framework on paper is not enough; consumers need enforceable, practical protections. As the noble Baroness, Lady Bennett of Manor Castle, rightly identified, it is essential that Ofgem is fully prepared and properly resourced to take on its new responsibilities from 27 January. It must be able to intervene when prices are unfair, when service standards fall short and when vulnerable households are at risk of disconnection. Clear complaints processes must be in place, and operators must be held to account. Like the noble Earl, Lord Russell, I would be grateful if the Minister can provide assurances today that Ofgem will be ready from day one, with no gaps or uncertainty for existing heat networks customers. The introduction of a special administrative regime is similarly welcome. But, again, the test will be in its delivery. Consumers must have confidence that, should a provider fail, essential heating will continue uninterrupted, particularly for households in the winter months. The demand and use of heat networks will continue to play an increasingly important role in our energy system, and it is vital that this regulatory framework is implemented swiftly and effectively. Consumers must be able to rely on heat that is affordable, transparent and properly overseen. Without that assurance, the sector will not expand at the scale required. These regulations take us closer to a regime that commands consumer confidence; the task now is to ensure that the protections set out in the Energy Act are delivered in practice for the half a million households that depend on these networks.

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