Decision details

District Heating Annual Report 2022

Reference: D55847

Decision Maker: Executive Board

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


To note that good progress has been made with district heating over the last year with significant growth planned for this year and to take some operational decisions re pricing strategies to reflect global utility volatility and to prepare for forthcoming legislation. 



The Director of Resources submitted a report which presented the District Heating annual report 2022. The report reviewed the operational and financial performance of the programme over the past year and forecasted key activities and anticipated performance for the short term. The report also considered the impact of global gas price increases on the pricing strategy for current and future customers, outlined the likely impact of key forthcoming legislation and recommended actions with regard to proposed changes to heat tariff indexation and also regarding proposals to extend the district heating connection to the Lovell Park multi-storey flats.


In introducing the report, the Executive Member for Infrastructure and Climate provided an overview of the key themes within it and the progress which continued to be made through the district heating network. The Executive Member also extended her thanks to the Sustainable Energy and Air Quality team for the work that it had undertaken to get the network to its current position.


Responding to a Member’s enquiry, the Board was provided with further details on the level of financial support which had been provided by Government in this area. With regard to the specific Government support relating to the district heating scheme, it was undertaken that further information on this would be provided to the Member in question.


In relation to an enquiry regarding maximising the benefits of the district heating scheme and other alternative sustainable energy schemes for domestic customers across the city, the Board received an overview of the work which the Council continued to undertake with partners in this area. 


Following consideration of Appendix 1 to the submitted report designated as being exempt from publication under the provisions of Access to Information Procedure Rule 10.4(3), which was considered in private at the conclusion of the public part of the meeting, it was



(a)  That approval be given to offer the proposed changes to heat tariff indexation, as set out in exempt Appendix 1 to the submitted report, in order to deal with the ongoing global spikes in gas prices;


(b)  That approval be given to commit £840k of Housing Revenue Account (HRA) budget to secure the district heating connection to the Lovells in anticipation of securing Social Housing Decarbonisation and Home Upgrade Grant Funding as match funding;


(c)  That the proposal to seek accreditation from the Heat Trust for the Leeds PIPES network by summer 2023, be supported, in order to help prepare for future heat network regulation;


(d)  That the financial performance of the network, as detailed within the submitted report, be noted; with it being acknowledged that the Director of Resources will continue to have delegated authority to take operational decisions to optimise commercial performance, with such matters being reported annually to Executive Board.

Reason Key: Financial Impact>£500K;

Portfolio Holder: Executive member for Infrastructure and climate

Contact: George Munson, Energy and Climate Change Manager 07891 270294 Email:

Report author: George Munson

Publication date: 28/11/2022

Date of decision: 23/11/2022

Decided at meeting: 23/11/2022 - Executive Board

Effective from: 03/12/2022

Accompanying Documents: