Efficiency Direct

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Heat Network Regulations

The Heat Network Regulations came into force in 2014 and affects operators of heat networks.

The overall aim of the Heat Network Regulations is to reduce carbon emissions from heating and cooling premises. With the thinking behind the regulations being that by installing heat meters or equivalent, end users will pay for what they are actually using. In turn, the hope is that users will become more aware of their usage and be more efficient with their usage. This also supports a fair and transparent method for billing end users on heat networks.

So, if you supply heating, cooling or hot water to tenants via a heat network, you may be affected by The Heat Network (Metering and Billing) Regulations.

Since the regulations were launched in 2014, heat suppliers have been required to notify BEIS of each and every heat network they operate, and then renotify every four years. Under the regulations, the heat suppliers are required to install accurate heat meters (or heat cost allocators) and temperature control devices, where it is cost-effective and technically feasible to do so. There is a duty to maintain these meters, check they are working and bill customers/tenants accurately for their consumption.

Under the regulations, heat network operators, such as landlords with multi-tenanted properties must submit a notification for the networks that they operate.

The notification template is available on the government website or you can contact us to request a copy.

Heat Network Regulations updates 2020

In November 2020, the regulations were amended which saw the introduction of a building “class” system and associated obligations for heat suppliers.

As of November 2020, heat suppliers are first required to determine which “class” of building they fall into. Then depending on which class they fall info, they must then take the necessary steps to ensure they comply with the regulations and do so by the deadlines outlined.

There are three building classes: Viable, Open and Exempt. The definitions of these are lengthy and can be found on p.32 of the governments Head Network Regulations Guide.

For assistance with determining which class your building falls within, get in touch with a member of our team.

To summarise the building class responsibilities:

  • buildings classed as Viable: metering is mandatory.
  • buildings classed as Open: customer metering devices may be required. Buildings in the Open class are obliged to carry out an assessment to determine whether it would be technically feasible as well as cost-effective to install heat metering.
  • building classed as Exempt: there is no obligation to install metering devices for customers (and no obligation to carry out an assessment of technical feasibility and cost-effectiveness).

Heat Network Regulations deadlines – key dates

The 2020 update brings with it some actions and deadlines for heat suppliers:

By 27th November 2021

  • Determine whether your building falls under one of the three newly-defined classes. And if so, identify which. i.e Viable, Open or Exempt.
  • Complete a technical feasibility and cost-effectiveness assessment for buildings in the Open class.

By 1st September 2022

  • Complete heat metering installations in all buildings that fall into the Open class (if following assessment, it was deemed to be both technically feasible and cost-effective).
  • If, following assessment, it was deemed not technically feasible and/or cost-effective to install heat meters but it was deemed to be cost-effective to install heat cost allocators (HCA’s), thermostatic radiator valves and hot water meters, then you must do so by this second deadline.

How Efficiency Direct can help

Complying with the Heat Network Regulations can be a complex and time-consuming process that’s why Efficiency Direct offer a complete service from submitting notification to BEIS, Assessing the building “class” under the amended regulations, carrying out a cost effectiveness and technical feasibility survey, Liaising with BEIS throughout the process, fulfilling heat metering install requirements.

 Helping UK business comply with the latest Heat Network Regulations legislation requirements.

We have a number of clients who have been affected by the latest updates to the heat network regulations. We have been working with them to help them comply.

The service initially starts with lodging notification with the Department for Business, Energy & Industrial Strategy in the UK (BEIS), followed by assessing the networks “class”, and implementing the associated obligations such as undertaking a heat meter survey and completion of cost effectiveness calculations and technical feasibility assessment.

 Following on from the initial steps, we can project manage the heat meter installation in multi occupancy premises and the on-going tenant billing service.

For more information about the Heat Networks Regulations and how to comply, contact us today.

 

 

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