New heat network subsidies are a long-awaited win for a critical sector

New subsidies to support heat network customers are a long-awaited win for the sector, says the Association for Decentralised Energy (ADE), which has been campaigning for this gap in government support to be closed since the start of the price crisis

The trade association, which represents more than 160 organisations, has welcomed today’s Spring Budget announcement, in which the Government committed to subsidise the cost of energy for heat network customers.

Lily Frencham, CEO of the ADE, said: “We are very happy to see the next stage of ongoing protection of customers announced by the Chancellor, particularly the rolling out a new financial support package for those on heat networks. Alongside the extension of the Energy Price Guarantee (EPG), an equally welcome announcement to help protect the public from volatile energy prices, this is a really encouraging step towards tackling the worst impacts of the energy price crisis.

“Zero carbon heat networks will be a mainstream way of heating buildings in the UK - it is thus vital that they receive support similar to that provided to any other type of energy customer – today’s Budget does this.”

Kieran Sinclair, Heat Policy Manager at the ADE, noted that today’s commitment would need to be underscored with a long-term plan to deploy solutions that will lower bills in the long-term. He said: “We are very pleased at having helped to secure today’s £380 million heat network support package. While heat networks only supply 2% of the country’s heating demand today, they are an internationally proven route for decarbonising heat at scale and will need to see significant growth if we are to successfully decarbonise our towns and cities. This growth will need to be underpinned by a wealth of supportive regulations, and today’s announcement makes a real step in the right direction.

“However, we can’t ease off the pedal now. To drive the modernisation of our energy systems and to protect households from energy price rises in the long-term, Government will have to reduce exposure to volatile gas markets through meaningful spending on heat decarbonisation and energy efficiency, to make the UK’s homes affordable, comfortable and ready for net zero.” 

The ADE team are available for further comment and interview – please email external.affairs@theade.co.uk if this is of interest.