Hansard

I thank Paul Wheelhouse for introducing the Heat Networks (Scotland) Bill. I welcome the bill as an opportunity to address concerns around the sector and as a move towards decarbonising heat. It is also an opportunity to lift thousands of families out of fuel poverty.

I will leave the committee members who are speaking today to outline the recommendations, which we support, during this important stage 1 debate.

I am pleased to open the debate for Scottish Labour. We will support the bill at stage 1, but we believe that it has so much more potential. We face a climate emergency, and heat from buildings accounts for a quarter of Scotland’s climate emissions, yet none of the statistics around renewable heat in Scotland seem to match the urgency for action. So far, the progress in this area has been far too slow. The target of 11 per cent seems quite measly given our understanding of the climate change emergency, and the fact that it has been missed is disappointing.

Heat networks can and must be part of the transition to a net zero society, but the estimates are of only between 7 and 17 per cent of Scotland’s heat demand being met from renewable networks, which is not enough. That will not drive the large-scale changes that are needed to tackle the climate crisis. We need ambitious targets for a green recovery.

It is notable that, in its recommendations, the committee invites the Government

“to reflect on whether its ambitions for the impact of the Bill are on a level with those it has already set out for tackling climate change and pursuing a green recovery.”

That needs further attention, and consideration must be given to the recommendation of WWF Scotland that targets and a clear delivery plan should be included in the bill and not just in guidance.

There is certainly consensus that heat networks are a way forward as part of a mixed renewable energy solution. However, if the sector is to be a success, a number of factors must come together. I will be listening carefully to discussion of those in the debate.

The bill presents an opportunity to drive up consumer confidence, and we know that low confidence is a significant barrier to developers and uptake. A regulated sector with robust licensing, service standards and consumer protection would improve confidence among developers and investors, who are reluctant to take risks without measures that create licence holders with statutory powers similar to those of other utility providers. In its report, the committee has asked to see

“a clearer commitment to consumer protection”,

which is a view that is supported by Ombudsman Services.

I ask that consideration be given to including in the bill provision for what should happen in a situation when a customer enters into a heat network without the ability to switch suppliers. I hope that the minister and the committee will address that issue as the bill progresses. Having more information about service, customer engagement, minimum standards and price, as well as other information such as licence conditions, in the main body of the bill would be a way of ensuring such protection.

Further, as other members have said, having a co-ordinated approach by local government and the Scottish Government will be necessary. In its report “Renewable Heat in Scotland, 2011”, the Energy Saving Trust acknowledged that clarifying the role of local authorities should be a priority. Although the bill does consider the role of local authorities, there is a lack of reference to community engagement, so that aspect must be given greater priority. Again, the committee has recognised that.

Advice and funding will also be critical to ensuring that councils have the capacity and knowledge to develop municipal, community or co-operative not-for-profit heat network companies. I welcome hearing the minister’s commitments on those areas. Consideration must also be given to achieving a just transition and to ensuring that skills and knowledge are in place to respond to the challenge and expand the sector. Those include the skills to develop technology, install it and maintain it.

Given the benefits that heat networks could bring in reducing domestic fuel costs, it is a relief that the minister has today agreed that provisions to address fuel poverty will be included in the bill.

In Drammen, Norway, district heating via a heat pump delivers the city’s collective heating needs, using fjords as a resource. Some 50 per cent of the system is owned by a commercial energy company and the remainder is owned by a municipal company. Indeed, in many European countries there have long been district heat networks, which are embedded in their cultures with no concerns about a lack of individual control, because people work together on such schemes. We must recognise that, as we develop networks here in Scotland, there must be support and clear information for our communities. It is encouraging for the development of our manufacturing base in relation to heat networks that it was a Scottish company, Star Renewable Energy—which I know the minister and other members have visited—that made the Drammen system possible.

There is much to be positive about in the bill. If the gaps are addressed, it will enable us to grasp fully the local, national and global benefits that heat networks offer.