Heat Network Regulations

Welcome Energy is fully compliant with the district and communal Heat Network (Metering and Billing) Regulations (2014). We are also responsive to emerging legislation such as the BEIS’ revised cost-effectiveness tool and its relevance to past regulations.

Read our FAQs below to find how what property managers and managing agents need to know.

Contact us if you need help or support, or simply wish to register your scheme.

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The decarbonisation of heat networks is essential for the UK to achieve carbon neutrality by 2050. With this in mind, BEIS has introduced a series of amendments to the Heat Network (Metering and Billing) Regulations which came into effect on 27th November 2020.

While these regulations may seem like a legislative nuisance, they will ensure transparency, efficiency and fairness when it comes to metering and billing. We at Welcome Energy are happy to step in and simplify the regulation process for our clients.

Read the Government’s guidance on the Regulations.

What to expect from 27th November 2020

  • Guidance on the new Heat Network Regulations 2020
  • A new cost-effectiveness tool for the installation of metering devices
  • A revised heat network notification template

The 3 key requirements of the new Regulations

Notification

Heat suppliers must notify OPSS of the location of any heat network or communal heating scheme, along with an estimated total of its installed capacity, the heat generated and heat supplied per calendar year. They must also be notified of the number of and types of buildings that are a part of the network, the number of customers, and the content and frequency of their billing.

Metering

Point of entry meters are mandatory for all communal heat schemes to record the heat delivered to properties from the plant or energy centre. Final customer meters must also be installed and serviced regularly. If installing meters is not viable heat cost allocators can be considered. It is expected that all heat networks will have to be fully metered over time.

Billing

End customers must receive accurate billing based on actual consumption at least once a year. This means billing will be based on meter readings rather than estimates. The bills must contain a breakdown of the cost, current energy prices, details of total consumption compared to the previous years when available, and information on how to improve energy efficiency moving forward.

FAQs

for Property Managers and Managing Agents

Registrations must be updated every four years using the updated notification template. Most heat networks were registered by the original notification deadline in December 2015 and should have re-notified by 31st December 2019. Unfortunately, it is believed that many of the UK’s 17,000 heat network operators failed to respond by the deadline and the OPSS has begun issuing formal warnings. Welcome Energy can take care of your registration and help you avoid future non-compliance fines.

Heat cost allocators should be considered as an alternative to submeters if the heat supplier has determined that it is not cost effective or technically feasible to install meters. These alternatives can also be considered if there is more than one final customer in a building supplied by a district heat network or communal heating. Or the heat supplier supplies both heating and hot water to that building.

Alternative metering methods may have to be considered for older builds where it is not feasible to install sub meters. Welcome Energy can help assess and give guidance on the best option for your build.

These regulations are intended to make heating networks as transparent and efficient as possible. This will be cheaper and fairer for customers, as well as more environmentally responsible.

Energy efficiency is the easiest way to save money while simultaneously reducing carbon emissions. Transparent billing also means your tenant can’t be charged for anything that isn’t directly related to heating their property.

Depending on the heating scheme and the build of the properties, new meters may have to be installed or old ones replaced. Welcome Energy can help with all of your metering needs from choosing the best option for your build and installation to monitoring and billing.

The amendments were made on 5th November 2020, they were presented to Parliament on 6th November 2020, and came into force on 27th November 2020.

Check back here for updates on deadlines.

Once installed, the projected energy savings over the 10 year period is 20% of the benchmark heat demand rate. This is for a building consisting mainly of private dwellings, and excludes the year after installation when the projected amount saved is 10% of the benchmark heat demand rate.

By making heat networks more energy efficient we are working towards the UKs 2050 net zero carbon target.

Our offices will be closed for the Bank Holiday (Monday 29 August 2022).
If you have a query, please contact us from Tuesday 30 August onwards, and we
will be happy to deal with your query then.
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