Policy paper

Heat networks: developing a market framework

The government priorities for a long-term market framework that will drive investment in heat networks, ensure consumers are adequately protected and support decarbonisation.


Heat networks: ensuring sustained investment and protecting consumers

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Heat accounts for nearly half of the UK’s energy use and a third of greenhouse gas emissions. The Clean Growth Strategy sets out a significant role for heat networks as a low-regrets component of meeting our legally binding decarbonisation commitments. This requires a major increase in growth rates and investment in the UK heat network market, supported by effective consumer protection measures.

This document sets out:

  • the context of the government’s support for heat networks and the role of the sector in the decarbonisation of heat
  • our priorities for establishing a market framework to deliver this growth in a way that protects consumers and delivers sustained investment as well as maximising the potential economic and environmental benefits from heat networks

It responds to:


We aim to consult on policy options for the framework in summer 2019, but in the interim we would like to hear your views as we develop the heat networks market framework.

Respond to the questions in the document by 1 February 2019:

Heat Networks Team
Department for Business, Energy and Industrial Strategy
1 Victoria Street

Published 7 December 2018