Heat Networks Regulation Working Group: recommendations

Approach of The Working Group

7. Working Group members comprised stakholders drawn mainly from the industry, consumer groups, local government and supply chain. Since the focus of the prospective legislation is to support the deployment of heat networks in Scotland, wider industry stakeholders were invited to one of the meetings. A full list of all contrubutors is at Annex A.

8. Members of the Working Group worked in three thematic subgroups, focusing on the regulatory framework; addressing demand risk and consumerprotection. This was to enable Group Members' involvement to be focussed on those areas which were of most interest to them, or to which their expertise and experience were most relevant.

9. Each of the topics had a dedicated paper that was discussed by the stakeholders during sub-group meetings and at the Working Group plenary meetings. Comments made during the workshops, along with written comments from the Working Group members, were used to draft this Report. The Working Group's Key Findings are below, while further discussion of the three issues have been provided to the Scottish Government to support a draft Bill.

10. The Regulatory Framework Sub-Group considered:

• the creation of a sector regulator;
• the introduction of a licensing system;
• the introduction of a consenting system;
• conferring statutory undertaker rights; and
• the creation of a facilitation process to encourage heat network connections and/or the use of waste/residual heat.

11. The Addressing Risk Sub-Group considered whether further measures, both within and outwith the scope of primary legislation, could support the regulatory framework, above.

12. The Consumer Protection Sub-Group considered what safeguards are needed for heat network customers and whether any special considerations applied in Scotland.