Question 1
Do you agree with the Committee’s initial view that MOD33 will better facilitate the achievement of the Scheme Objectives and Transition Aim and is in line with the Transition Principles?
Yes
The Scheme Transition Schedule states that its overarching purpose is to facilitate a smooth transfer of heat customer protections, including standards and compliance-related activities, from the Scheme to Ofgem as the statutory regulator for heat networks. MOD33 seeks to expand the grounds on which the Scheme End Date can be extended, to implicitly include a scenario whereby ending the Scheme would result in customers losing significant Scheme protections due to equivalent statutory protections not being in place.
One such scenario relates to Section 6 of the Scheme Rules on Guaranteed Performance Standards. Provisions here include consumers’ rights to minimum compensation payments for longer or repeated supply interruptions, and a requirement on heat suppliers to provide alternative heat provision to customers in vulnerable circumstances within 12 hours of a supply interruption. Consumer Scotland understands that the timescales for the introduction of equivalent standards in heat networks have slipped. Ofgem still plans to consult on its Guaranteed Standards of Performance before the end of 2026, but a planned statutory instrument in Spring 2026 did not materialise, and the original timescale to begin phasing in new standards from January 2027 is no longer achievable.
Consumer Scotland therefore supports MOD33 as consistent with the overarching purpose of the Scheme Transition Schedule and as a mechanism for ensuring that no consumer protection gaps are created where the transfer of key protections has not yet completed.
Question 2
Do you agree that the draft legal text delivers the intention of MOD33?
Yes
Consumer Scotland is satisfied that the draft legal text delivers the intention of MOD33. However, we would suggest that paragraph 7.5.1(a) could be removed. We would expect Registered Participants to proactively engage with Ofgem in order to successfully complete registration across all of their Registered Sites. Heat networks are also deemed authorised, so a failure to achieve this should not warrant an extension to the Scheme End Date.
Question 3
Do you agree with the proposed implementation date if MOD33 is approved?
Yes
We agree with the proposed implementation date of 21 October 2026 if MOD33 is approved. Implementing the modification immediately following the Committee recommendation and subsequent Board decision will maximise the time available for Heat Trust to put plans in place for the continuation of the Scheme beyond its original End Date.
Question 4
Do you have any other comments about MOD33?
Yes
Guaranteed Standards of Performance have a key role to play in regulated markets by providing a route to redress when things go wrong. In heat networks, their introduction will help ensure that customers have protections equivalent to those available in the gas and electricity markets. These protections are particularly important because heat networks operate as natural monopolies, meaning consumers cannot easily take their business elsewhere if they are dissatisfied with the service they receive.
Embedding protections in this way strengthens the reputation of the heat networks sector as a viable alternative heating solution, supporting its ability to play an active role in the decarbonisation of the built environment, as identified by both the UK and Scottish governments.
Extending the Heat Trust Scheme, as enabled by MOD33, will ensure that Ofgem has sufficient bandwidth to develop Guaranteed Standards of Performance that are fit for purpose, responding to consumers’ needs now while embedding robust protections for heat network consumers in the future.
Consumer Scotland does not envisage a scenario where a further extension to the Scheme would be required. This window therefore presents a unique opportunity to close any identified consumer protection gaps, ensure a smooth transition to regulation and ultimately drive up standards for heat network consumers.
Question 5
In considering whether to extend the Scheme End Date beyond January 2027, are there any issues that you would like Heat Trust to take into consideration?
No
N/A.