Heat network developers pledge to slash costs for consumers

The commitment comes in a letter to the Chancellor, Rachel Reeves, from the UK’s leading heat network bodies – ADE: Heat Networks, the Heat Networks Industry Council and the UK District Energy Association. Together, they represent over 250 organisations, £9 billion of potential investment and more than 5,000 jobs.

Heat network developers have pledged to achieve a 7.5% reduction in the capital cost of building heat networks and a 20% cut in the cost of electricity consumed by them by 2030. This will help make clean heat more affordable and accelerate the UK’s transition away from fossil fuels. 

Backing this commitment, new analysis reveals the monumental national payoff. If just 20% of UK heat were supplied by strategic low-carbon heat networks by 2050, electricity system customers would save a staggering £54bn, and heat customers would save over £70bn compared to using individual air source heat pumps. This would also unlock £100bn of private investment, create more than 100,000 skilled jobs and stimulate UK manufacturing. 

Caroline Bragg, CEO of ADE: Heat Networks, said: “Decarbonising heat without putting up bills is one of the most important political and moral challenges of our generation. The heat networks industry is already playing its part. We are ready to harness wasted heat from our rivers, industries and renewables to cut bills. We welcome partnership with Government to resolve this challenge.” 

Andrew Wettern, chair of the Heat Networks Industry Council, said: “With more than 12,000 existing heat networks in the UK, and more than £2bn of low carbon heat networks in development, heat networks are a proven route to lowering customer bills.  Our commitment to cost reduction demonstrates our confidence in delivering lower customer bills through achieving scale.

“Achieving 20% of UK heat from heat networks by 2050 through further policy support from Government would unlock more than £120bn of benefits to user bills. Now is the moment to act for future generations.” 

Simon Woodward, chair of the UK District Energy Association, said: “This commitment is a promise to build on solid foundations - to drive down costs through smarter engineering and operational excellence. We’re ready to roll up our sleeves and work with Government to ensure these local energy projects become the backbone of the UK’s low-carbon future.”