Accounting Advice for Heat Network Policies

Descriptions

This is a Contract Award notice for the award of the Call-off contract for ESA2010 accounting advice for heat network policies, procured via the CCS Framework MCF4 RM6309.

The heat network sector is set to significantly expand with the introduction of new legislation, notably Heat Network Zoning Regulations which are expected to be enacted in 2026. Under those regulations it is anticipated that certain buildings will be legally required to connect to heat networks developed within designated heat network zones. It is likely that many public sector buildings will fall under this classification and that some heat networks may have a particularly high public sector offtake as a result, at least in the early years of the network's development.

In addition to individual public sector buildings joining networks, central government is currently providing and is considering providing further support for heat network development through multiple mechanisms.

This contract is intended to evaluate the influence of both these factors on the national accounting treatment of heat networks, specifically the potential for these factors to result in the requirement for entire heat networks to be recognized on the government's balance sheet.