As government places greater responsibility for the energy transition in local hands, new research from Baxi highlights the importance of equipping councils to become effective partners in heat network delivery.
Among the housing associations and local authorities surveyed, 76% were confident in their plans for heat networks and associated regulations, yet only 24% recognised heat network zoning requirements. That contrast suggests confidence in operating familiar systems may be running ahead of preparedness for a changing market.
Baxi surveyed 100 housing associations and 102 local authorities already managing or operating networks, so the findings should not be read as a verdict on every council. Nevertheless, limited awareness among experienced organisations underlines the need for practical support as national policy moves towards local implementation.
Under England’s proposed zoning framework, local zone coordination bodies would help designate areas, select developers, scrutinise prices and oversee delivery commitments. These responsibilities require commercial understanding and political leadership extending well beyond the technical knowledge needed to maintain a heating system. Developers will benefit from working with authorities that have the expertise and resources to make informed decisions and sustain progress.
This makes early engagement essential, beginning while councils are shaping their priorities and assessing options, before procurement fixes the parameters of a scheme. Developers need to understand local housing, regeneration and economic ambitions, while officers and elected members need a clear understanding of the investment requirements, commercial model and conditions needed for successful delivery.
Those conversations should bring together housing, planning, finance, procurement and climate teams, alongside potential anchor customers such as hospitals, universities and major employers. Identifying competing priorities, gaps in expertise and barriers to connection early can prevent them becoming expensive obstacles during delivery. It can also help developers identify demand, build relationships with potential customers and shape proposals around local opportunities.
Engagement must leave room for proposals to evolve, supported by appropriate independent advice and transparent market engagement that preserves fair competition. Government can strengthen these partnerships through practical guidance, specialist training and dependable funding, helping authorities provide the clarity and continuity that long-term investment requires.
Devolution will be most effective when responsibility, expertise and resources advance together. For developers, capable local partners can help reduce uncertainty, coordinate decisions and build the political and community support on which delivery depends. The strongest heat network partnerships will combine private-sector investment and technical expertise with informed local leadership, giving both sides a shared understanding of what a viable scheme can achieve and how residents will benefit.
Baxi’s full cited research is available to read here.