14:38 Elliot Colburn (Carshalton and Wallington) (Con)

The second thing I want to look at is the fact that SDEN is dependent on the Beddington incinerator to operate, but that creates a paradox. SDEN claims to be a low-carbon energy provider, but SDEN was used as a condition to get approval to build an incinerator, which is the largest polluter in the borough. Those two statements just do not add up. The heat network relies on the burning of waste to keep it going, yet the Lib Dems are claiming that they can increase recycling rates this way. Incineration is not conducive to our net zero targets, and it is the Government’s policy to phase out incineration in their waste minimisation strategy.

This is where we need the Government to try to help. This relatively new form of energy is almost entirely unregulated, so new consumer protections are needed. I welcome the work that BEIS is doing to regulate heat networks. I support the decision for Ofgem to act as the regulator, with Citizens Advice acting as advocate for customers and the energy ombudsman responsible for resolving disputes. We need regulation and consumer support as soon as possible. To reach our net zero ambitions, heat networks are set to increase by 800%—that is a lot of growth in a short period of time.

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14:50 The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)

The experiences of constituents that we have heard highlight the importance of the Government’s commitment to regulate the heat networks market within this Parliament. Heat networks are vital to our net zero ambitions. As we have set out in the heat and buildings strategy, they are the only way that we can unlock large-scale renewable and recovered heat sources such as energy from waste, waste heat and heat from rivers and mines. When they are deployed effectively, heat networks can bring together greater heat efficiency than individual gas boilers, lower costs for consumers, unlike what we have just heard, and support for local regeneration. We recognise when we hear examples such as this that we need to regulate the market to ensure protections for heat network consumers.

In the round, it is essential that heat network consumers are provided with clean and reliable heat at an affordable price. It can work; it does work in other parts of the country. As I have said, it is a real marker of our net zero ambitions, which is why we are developing a heat networks market framework that places consumers at its heart, delivers sustainable investment in the sector, and maximises heat networks’ potential economic and environmental benefits. We committed in the energy White Paper to legislate for this market framework by the end of this Parliament, and we are working closely with industry and consumer groups to ensure that the regulation delivers positive outcomes for consumers.

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