Energy Price Cap (Heat Networks)

Portfolio Question Time – in the Scottish Parliament am 2:00 pm ar 26 Medi 2024.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Ben Macpherson Ben Macpherson Scottish National Party 2:00, 26 Medi 2024

To ask the Scottish Government, regarding the implementation of its heat in buildings strategy, what discussions it has had with the United Kingdom Government on consumer protection, in the light of reported concerns that customers currently using heat networks are not protected by the Office of Gas and Electricity Markets’ price cap. (S6O-03770)

Photo of Alasdair Allan Alasdair Allan Scottish National Party

Although heat networks are devolved to the Scottish Parliament, consumer protection remains a reserved matter and, therefore, we are reliant on the UK Government enacting the consumer protection provisions that are contained in the Energy Act 2023. We await the new UK Government’s next steps on that. The Scottish Government continues to work closely with the UK and Welsh Governments and Ofgem on the implementation of consumer standards, and is participating in a quadripartite group that is overseeing the implementation of the legislation.

Photo of Ben Macpherson Ben Macpherson Scottish National Party

I welcome the Scottish Government’s proactive work on that. Constituents have written to me and to other MSPs explaining that they are currently facing increases of upwards of 500 per cent in their district heating costs by their property factors. The lack of consumer protection in that area leaves customers vulnerable to market forces. My constituents are worried about their ability to pay their energy bills this winter. Sadly, as has been set out, the Parliament lacks the legislative power to change energy policy in that area. Considering that the Scottish Parliament is unable to take that action, will the Scottish Government continue to press the UK Government to take action as soon as possible? Can any pressure be applied to property factors to engage with parliamentarians so that, together, we can help our constituents who are affected?

Photo of Alasdair Allan Alasdair Allan Scottish National Party

I hear Ben Macpherson’s concerns, and I think that I may know the area of Edinburgh that he is referring to. As he has mentioned, the Parliament lacks the legislative power to change energy policy in that respect. It is disappointing that the UK Government has not taken quicker action to protect consumers who are reliant on heat networks for heating and hot water. I will raise the issue as a matter of urgency with my counterparts in the UK Government, and will certainly correspond with the member on some of the issues that he raises.

Photo of Brian Whittle Brian Whittle Ceidwadwyr

Mr Macpherson raises important points about consumer protection in relation to the implementation of the Scottish Government’s heat and buildings strategy. Industry leaders have expressed concerns that the current differing patchwork of quality assurance and consumer protection schemes makes it unclear what accreditation is needed for Government energy efficiency funding. Will the Government introduce mandatory quality assurance accreditation in the proposed heat in buildings bill, and will sufficient time be allowed in order to allow industry to adjust and obtain those accreditations?

Photo of Alasdair Allan Alasdair Allan Scottish National Party

The member would not expect me to pre-empt any announcement about what might be in future legislation in any detail. However, we are continuing to implement the Heat Networks (Scotland) Act 2021, and we have passed the Heat Networks (Heat Network Zones and Building Assessment Reports) (Scotland) Regulations 2023, which will help local authorities and the Scottish Government to identify opportunities for heat network developments across Scotland. We will shortly consult on proposals to introduce a proportionate licensing and consenting system for Scotland, which I hope will address some of the issues that the member raises.