NEA response to Heat Networks: Building a Market Framework

NEA response to Heat Networks: Building a Market Framework

NEA believes dramatically improving domestic energy efficiency levels remains the most enduring solution to addressing energy affordability and has previously worked with the UK Government to evaluate the impact of district heating projects. District heating can contribute to fuel poverty reduction targets through its ability to provide stable and predictable prices for energy over an extended period of time; reduced worry for households about breakdowns or repairs; the creation of local employment opportunities and contribution to economic growth. Systems using dual or multi-fuel CHP are also better able to respond to (and alleviate) spikes in pricing, thus potentially preventing higher fuel bills for consumers (DECC 2012, Kelly and Pollitt, 2010, HCA 2012). Barriers which effectively prevent the realisation of district heating benefits for the fuel poor include: contractual tie-ins; limited choice of heat sources; system inefficiencies; poor transparency/perceived unfairness of billing calculations; and lack of recourse to independent adjudication (Which? 2015).

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NEA response to Heat Networks: Building a market framework
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