LGA warns of risks to deliverability and affordability of Heat Network Technical Assurance Scheme

The Department for Energy Security and Net Zero (DESNZ) has proposed the new standards will take effect during 2027 and is analysing consultation responses ahead of a final design.

Local government recognises the importance of improving technical standards across heat networks, the LGA said, but it felt the Heat Network Technical Assurance Scheme (HNTAS), “as currently proposed, presents significant challenges that risk undermining both its deliverability and affordability”.

Government proposals would be disproportionate, costly and operationally unachievable within the consultation timeframes and would impose a £1bn administrative burden on consumers, “with limited corresponding benefit”, the LGA said in its response.

It said experience showed “excessively complex governance arrangements do not reliably improve customer outcomes”.

Most existing heat networks are managed by local authorities or housing associations, “often at considerable financial loss”.

The LGA called for a more proportionate model which raised technical standards and protected consumers, while remaining deliverable and financially viable.

It said it was essential to distinguish between new heat networks, where improved standards can be embedded from the outset, and existing networks, many built decades ago when no national technical standards existed.

To improve the proposals the LGA called for organisation‑level assurance and licensing, with self‑certification similar to existing schemes recognised by regulator Ofgem and a minimum five‑year transition period, aligned with planning and development cycles.

It also said there should be mandatory standards on outage frequency and duration, and delivered temperatures, with compensation for non‑compliance, transparent price guarantees and improvements planned over 20 to 30 years.

A long‑term workforce strategy would be needed to avoid supply chain bottlenecks and rising costs.

DESNZ said the HNTAS “is being designed with deliverability and proportionality as two of its leading principles.

“Specifically, we are keen to ensure that the introduction of HNTAS does not place undue burden or cost on heat network operators or heat network consumers.”

Mark Smulian