Heat Networks (Scotland) Bill: evidence assessment

4 Heat Networks Introduction

4.1 Introductions to heat network regulations

This section provides a brief overview of the incoming heat networks regulations. This includes an overview of the previous work undertaken to develop these proposals, and latest thinking on the proposals themselves.

In January 2017, the Scottish Government held an initial consultation^[6] regarding the regulation of heat networks, designed to gather views to help inform further development of the proposals prior to more detailed consultation. Then in November 2017, the Scottish Government launched a second consultation,^[7] to further explore views on a potential new regulatory framework for heat networks.

Within these, the Scottish Government outline the potential for a new regulatory framework for heat networks, including:

• Area-based zoning for heat networks through LHEES;
• Granting of concessions for heat networks;
• Licensing of heat networks;
• Connecting supply of surplus industrial heat.

Subsequently the Scottish Government is looking to review existing legislation and consider what new or amended duties are required to support the sector. This could consider creating new powers and duties to regulate heat networks. The incoming regulations could also look to include and or remove areas of policy which have previously been highlighted.

4.2 Indicative regulatory overview

The proposals for the scope and design of the incoming regulatory changes for heat networks are still in development, and as such the potential regulatory tools included as part of these regulations could change.

However, we have been undertaking work to identify and develop initial views regarding the potential impacts, both positive and negative, for different stakeholder groups that could arise from these interventions. These evidence gathering activities have been based on a set of potential policy tools, which we outline below.

At this stage, we have looked to gather evidence on a range of potential impacts for a specific set of policy interventions, which may or may not come to pass. This evidence will allow a future assessment of these interventions, when the Scottish Government will publish a draft impact assessment on any final proposals. We caution that the regulatory proposals outlined below could come to change.