Heat Networks (Scotland) Bill: evidence assessment

Footnotes

1. Scottish Government - Heat and energy efficiency strategies: second consultation analysis.
https://www.gov.scot/publications/scotlands-energy-efficiency-programme-analysis-second-consultation-local-heat-energy-efficiency-strategies-regulation-district-communal-heating/pages/2/

2. Scottish Government - Scottish Public Finance Manual.
https://www.gov.scot/publications/scottish-public-finance-manual/finance-guidance-notes/fgn2009-01-financial-memoranda-that-accompany-scottish-government-bills/

3. Scottish Government - Business and Regulatory Impact Assessments (BRIA) guidance.
https://www.gov.scot/publications/bria-guidance/

4. HM Treasury - Green Book.
https://www.gov.uk/government/publications/the-green-book-appraisal-and-evaluation-in-central-governent

5. Scottish Government - Business and Regulatory Impact Assessments (BRIA) guidance.
https://www.gov.scot/publications/bria-guidance/

6. Scottish Government - Heat and energy efficiency strategies and district heating regulation consultation.
https://www.gov.scot/publications/consultation-heat-energy-efficiency-strategies-regulation-district-heating/

7. Scottish Government - Heat and energy efficiency strategies consultation.
https://www.gov.scot/publications/scotlands-energy-efficiency-programme-second-consultation-local-heat-energy-efficiency/

8. Bulk heat networks are where the main operators deliver heat in bulk to major distribution points, but who do not have responsibility for final delivery to the end customers. Non-Bulk schemes are those where the operator or manager of the scheme is responsible for final delivery to the individual customer.

9. BEIS - Assessment of the Costs, Performance, and Characteristics of UK Heat Networks
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/424254/heat_networks.pdf

10. We would have ideally looked to rebase figures based on a retail supply index, such as the Ofgem gas supply index, however this was unavailable for the time periods required.

11. CMA - Heat Networks Market Study.
https://assets.publishing.service.gov.uk/media/5af31b9640f0b622d18b2d3f/Update_paper_heat_networks.pdf

12. The CMA believe the most accurate counterfactual for heat provision is that of mains gas heating. Around 85% of households (22 million out of 26 million) in Great Britain use mains gas for heating. Insights paper on households with electric and other non-gas heating, Ofgem, 11 December 2015.

13. BEIS Survey costs have been inflated using RPI to June 2019 prices. Ideally, we would have used the Ofgem gas supplier cost index, but this does not allow rebasing to 2019.

14. BEIS - Assessment of the Costs, Performance, and Characteristics of UK Heat Networks. Prices rebased to June 2019.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/424254/heat_networks.pdf

15. Energy Networks Association - Applicable Wayleaves Compensation Rates
http://www.energynetworks.org/assets/files/electricity/regulation/Owner%20and%20Occupier%20Wayleave%20Compensation%202016-17.pdf

16. Citizens Advice - District heat networks 2.
https://www.citizensadvice.org.uk/Global/CitizensAdvice/Energy/District%20Heat%20Networks%20IR%20Report%202%20(May%202017)%20-%20FINAL.pdf

17. Sources from regulator annual accounts.

18. Ofwat - Costs and benefits of introducing competition to residential customers in England.
https://www.ofwat.gov.uk/wp-content/uploads/2016/09/pap_tec20160919RRRfinal.pdf

19. WICS - Retail competition in Scotland an audit trail of the costs incurred and the savings achieved.
https://www.watercommission.co.uk/UserFiles/Documents/WICSAuditTrail(B)%20(2).pdf

20. Ofwat - Costs and benefits of introducing competition to residential customers in England.
https://www.ofwat.gov.uk/wp-content/uploads/2016/09/pap_tec20160919RRRfinal.pdf

21. Scottish Government - Housing Bill.
http://www.parliament.scot/Research%20briefings%20and%20fact%20sheets/SB10-19.pdf

22. The Water Services Regulation Authority (Ofwat) - Licence fees.
https://www.ofwat.gov.uk/regulated-companies/ofwat-industry-overview/licences/new-suppliers/becoming-water-supply-sewerage-licensee-wssl/

23. Water Industry Commission for Scotland - Licence fees.
https://www.watercommission.co.uk/view_Licence_fees.aspx

24. Office for Gas and Electricity Markets - Licence application.
https://www.ofgem.gov.uk/licences-industry-codes-and-standards/licences/application-process

25. IBID.

26. IBID.

27. We have looked to estimate the potential number of operators in Scotland, due a lack of specific data on this factor. We have identified that in total, there are around 1,600 supplier/operators across the UK as a whole, we have proportionally scaled this to reflect the 6% of total UK heat networks stationed in Scotland.

28. OGA - Licencing Cost Recovery.
https://www.ogauthority.co.uk/regulatory-framework/legislative-context/industry-levy/

29. Water Industry Commission for Scotland Levy Annual Report 2018 outlining total levy fees of 2019 prices ~£1,500,000 servicing over 50 licences (individual licences for both water and sewerage) providing an indicative cost per licence.
https://www.watercommission.co.uk/view_List_of_current_licensees%20.aspx

30. OGA - Licencing Cost Recovery.
https://www.ogauthority.co.uk/regulatory-framework/legislative-context/industry-levy/

31. Department for Environment and Rural Affairs (DEFRA) - Marine Works Impact Assessment.
http://www.legislation.gov.uk/uksi/2011/735/pdfs/uksiem_20110735_en.pdf

32. The Water Services Regulation Authority (Ofwat) - Indicative licencing administrative costs per licence.
https://www.ofwat.gov.uk/wp-content/uploads/2018/12/19-02-28-Responses-and-conclusions-WSSL-Licence-fee-consultation.pdf

33. Oil and Gas Authority day charge out rate per technical officer of £500 per day.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/66575/6792-cost-recovery-oil-gas-consents-consi.pdf

34. DECC - IA No: DECC0100.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/66650/6240-impact-assessment-for-the-consultation-the-necessa.pdf

35. DECC - Cost Recovery Consents.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/66575/6792-cost-recovery-oil-gas-consents-consi.pdf

36. DEFRA - The Marine Works Environment Impact Assessment.
http://www.legislation.gov.uk/uksi/2007/1518/pdfs/uksiem_20071518_en.pdf

37. IBID.

38. This is based on an existing average scheme size comparable to existing Scottish district heat networks, and current deployment rates. We have not included the potential for smaller communal heating schemes forming part of this projected take up. We might therefore expect that these estimates underestimate the potential total number of heat network and communal heating schemes which come online by 2050. Estimates rely on use of BEIS Experimental Statistics on heat networks.

39. CIBSE - CP1 : Heat Networks: Code of Practice for the UK
https://www.cibse.org/knowledge/knowledge-items/detail?id=a0q200000090MYHAA2

40. We looked to directly measure the incremental costs of adhering to these codes, in advanced of the counterfactual of the standards of construction and operation across industry.

41. Carbon Trust - Estimating the cost-reduction impact of the Heat Network Investment Programme.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/699306/Carbon_Trust._Estimating_the_cost-reduction_impact_of_the_Heat_Network_Investment_Proj...pdf

42. BEIS - Experimental statistics on heat networks.
https://www.gov.uk/government/publications/energy-trends-march-2018-special-feature-article-experimental-statistics-on-heat-networks

43. Scottish Government - Heat Policy Statement.
https://www.gov.scot/publications/heat-policy-statement-towards-decarbonising-heat-maximising-opportunities-scotland/

44. BEIS - The national comprehensive assessment of the potential for combined heat and power and district heating and cooling UK.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/499417/Final_NCA_Report_for_publication.pdf

45. CCC, Element Energy, Imperial College - Research on district heating and local approaches to heat decarbonisation
https://www.theccc.org.uk/publication/element-energy-for-ccc-research-on-district-heating-and-local-approaches-to-heat-decarbonisation/

46. The CCC study outlines potential deployment profiles for the UK as a whole, we have estimated the potential share of this deployment based on the current heat network share (9%) from Scotland as a whole and linearly projected these forward out until 2050.

47. Proportion of heat demand based on 2018 demand levels of around 82 GWh per annum demanded of total non-electric heat.

48. Developed from linear projection of existing deployment statistics (BEIS) out to deployment projections formed as part of the Committee on Climate Change Heat Network Deployment predictions. Scottish proportion of overall heat networks unchanged at 9%.

49. Report of the Special Working Group on Regulation - For the Scottish Government and the Expert Commission on District Heating
https://www2.gov.scot/Resource/0049/00497892.pdf

50. DECC - Assessment of the Costs, Performance, and Characteristics of UK Heat Networks
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/424254/heat_networks.pdf

51. CO2 emissions from a heat network scheme constructed from BEIS benchmarking data collected, compared to a counterfactual gas boiler with efficiency level of 85%. Negative (-) figures indicate increases in carbon emissions compared to the counterfactual scenario.

52. BEIS - The Potential Air Quality Impacts from Biomass Combustion.
https://uk-air.defra.gov.uk/assets/documents/reports/cat11/1708081027_170807_AQEG_Biomass_report.pdf

Ricardo Energy - Pilot study on the air quality impacts from Combined Heat and Power in London
https://www.london.gov.uk/sites/default/files/pilot_study_on_the_air_quality_impacts_from_combined_heat_and_power_in_london.pdf

53. ADE - Heat Networks in the UK.
https://www.theade.co.uk/assets/docs/resources/Heat%20Networks%20in%20the%20UK_v5%20web%20single%20pages.pdf