Overview of DHC Legislative Framework

Overview of DHC Legislative Framework

Country

United Kingdom

Legislative Framework

There is no legislative framework that exists for district heating.

The heat market is not regulated, and government is anxious not to intervene to damage a fragile ‘market’ by imposing. However, it is generally the case for emerging district heating systems that some sort of price guarantee is put in place so that consumers have some reassurance that they will not pay more for their heating than the conventional alternative of gas central heating. This is particularly important given that the markets for the alternatives of gas and electricity are closely regulated by Ofgem, and consumers have the facility to switch suppliers.

Purpose of the Legislation

The omission of district heating from national legislation is seen as something that Government wishes to rectify, with consumer protection as their priority.

There is however a desire to avoid any action that might damage the fragile growth of district heating in the UK.

The free energy markets with the ease of switching suppliers has been established with the intention of giving consumers freedom of choice, and through competition access to the lowest prices for gas and for electricity, the two major energy commodities in the UK.