According to the National Housing Federation, two thirds of all existing heat networks are owned and managed by social landlords, mostly in the form of communal boilers.
New Ofgem regulations for heat network providers announced at the end of January now herald change for the industry.
Existing operators and suppliers will be required to register on Ofgem’s new digital service from April. It will be the primary means for heat network teams to interact with Ofgem and demonstrate compliance.
Over time, says Ofgem, the regulations will mean that customers will be able to:
- Understand their bills.
- Trust that prices are fair.
- Rely on their heat supply.
- Know how to get help.
What heat networks provide
A heat network is like “central heating for cities”. Instead of individual heaters in each building, there is a big central heat source (or more than one source) and this is taken by pipes to buildings, potentially whole districts. They are often well suited to blocks of flats and apartments where there probably wouldn’t be space for individual air source heat pumps, for example.
There are over 14,000 heat networks in the UK (3,500 of those in London) supplying heating and hot water to approximately 450,000 to 500,000 households. About 85% to 90% of these are communal, residential-focused schemes.
Benefits to social landlords
• Cost and space: Heat networks can offer lower bills through economies of scale and free up space in homes by removing individual boilers.
• Efficiency: Centralised generation is often more efficient than multiple smaller units.
• Decarbonisation: The transition to heat networks forms a major part of the UK’s carbon reduction commitment, with heating in buildings making up 30% of all UK emissions.
• Decarbonisation example: Take data centres. Usually, heat is vented into the atmosphere but with heat networks, a heat exchanger captures this residual heat and transfers it to the network's water pipes.
So where should you start?
1. Confirm there is a suitable heat network to connect to
Check whether an existing or planned heat network is available nearby and assess whether your homes have sufficient heat demand and the right location to connect.
2. Work with the network owner to design the connection
Agree how your buildings will connect to the network, including connection points, capacity, temperatures and responsibilities, and design any on-site pipework needed within your estates.
3. Prepare homes and deliver the works
Specify the in-home heating equipment (such as heat interface units, or HIUs, to replace individual boilers), procure installers through Gold Standard frameworks, and carry out installation and commissioning.
Yes, LHC’s Retrofit and Decarbonisation (N9) Framework is divided into six workstreams, the fourth of which is Heating and Ventilation Systems. It includes expert advice and support on:
• Commercial and Communal Heating Systems.
• District and Network Heating Systems.
• Domestic Boiler Based Heating Systems.
• Domestic Renewables Space Heating Systems.
• Electrical Heating Systems.
• Building Ventilation Systems.
The available options allow for installations of all sizes and complexities – including communal and district heating systems – and cover social housing work on heating and ventilation.
Finally, back to the new changes announced by Ofgem, progress on which will need to be monitored closely by social landlords using or considering network heating.
Dealing with the changes will need guidance, and behind each LHC framework is a team of experts on hand to navigate that and other regulatory requirements as well as offer technical support.
For social landlords, the prospect of procuring and introducing network heating systems might seem like a challenging voyage across uncharted waters, but with the right help - from the right procurement experts, it can be plain sailing.