Launch of the BPF Heat Network Network
The launch of the BPF Heat Network Network took place on 4 March 2025, bringing together BPF members with an interest and expertise in heat networks.
Background
The heat network sector is undergoing a major transformation. The Energy Act 2023 introduced a new regulatory framework for heat suppliers and operators and, as part of the new framework, the Government is consulting on introducing heat network zoning in England where certain new and existing buildings within zones will be required to connect to heat networks.
To help the sector prepare, the BPF has set up a new Heat Network Network to share insights and experience and support the BPF’s policy and advocacy work.
The launch of the network was held at Bryan Cave Leighton Paisner (BCLP) in central London on the evening of the 4 March.
For the launch, the BPF invited a panel of experts to speak including Arran Mornin, Head of Heat Network Policy from the Department for Energy, Security and Net Zero, Ben Rodgers, Head of Regeneration at Legal and General Investment Management and Jenny Curtis, Managing Director at Vattenfall Heat UK. Rob Wall, Assistant Director, represented the BPF and the panel was chaired by Kenneth Addly, Associate Director at BCLP.
Policy
Heat networks currently meet 3% of UK heat demand. The aim is that, by 2050, heat networks will meet 20% of demand.
Reforms to the market will include a new licensing regime for operators, the designation of Ofgem as the new heat network regulator with powers to intervene on unfair pricing, a new consumer advocacy and support function and mandatory technical standards through the Heat Network Technical Assurance Scheme.
New funding is available through the Heat Network Efficiency Scheme to help existing heat networks improve efficiency and consumer outcomes, and through the Green Heat Fund to help heat networks adopt innovative low carbon heating technologies.
Heat network zoning will designate areas where heat networks are expected to provide the lowest-cost, low carbon heating. A key aim of zoning is to give heat network developers and investors more certainty about the number of likely connections to networks to help unlock investment and speed the growth of the sector. Certain buildings within zones will be required to connect including new buildings, existing communally heated buildings and existing commercial buildings with significant heat demand. There will be some exemptions, and the Government has consulted on this. The full Government response to the heat network zoning consultation is due in the Spring.
The panellists discussed the policy, the need for the real estate sector to have clarity to make informed decisions and how heat network zoning will provide greater demand certainty.
There was also a discussion about the need for the real estate industry to prepare. As part of this, the voice of the industry should be heard in the policy-making process and policymakers need to have an understanding of building specific issues, including viability, property law, landlord and tenant issues and leases.
Next steps
This was the first event delivered as part of the BPF Heat Network Network. There will be more events in the future.
The network will also be examining other ways in which to help the sector prepare, particularly for the introduction of zoning.
If you would like to join the network, please contact Rob Wall.
