Detailed guide: Heat Networks: compliance and guidance

By HM Government

Introduction

The Heat Networks (Metering and Billing) Regulations implement the requirements in the Energy Efficiency Directive (EED) with respect to the supply of distributed heat, cooling, hot water and cold water.

The new EED promotes energy efficiency in the EU to achieve the Commission‘s 2020 20% headline target on energy efficiency. It lays down rules to overcome market failures that impede efficiency in the supply and use of energy.

The Department for Energy and Climate Change (DECC) is the policy lead for the EED and the directive came into force on 5 June 2014.

Article 9 of the EED requires the use of heat and hot water metering where this is technically possible, financially reasonable and proportionate. Article 10.1 of the EED requires Member States to ensure that, by 31 December 2014, heat billing information is accurate and based on actual consumption, where it is technically possible and economically justified.

At present there are approximately 3000 heat networks in the UK serving 750,000 properties. These are a mixture of commercial properties and domestic dwellings. This represents approximately 2% of the UK’s domestic dwellings that receive heat directly.

Notifications

Under regulation 4 of the heat networks regulations, suppliers of heat must notify the Secretary of State (SoS). The NMO fulfills this role on behalf of the SoS for certain information.

The requirement is for this information to be supplied to the NMO for the first time by 30 April 2015 and then at least every 4 years.

Heat suppliers must, in relation to each district heat network or communal heating operated by them, submit the following:

  • location of that district heat network or communal heating
  • estimated total for that district heat network or communal heating, per calendar year, of
    • installed heating capacity
    • heat generated
    • heat supplied
  • number and type of buildings supplied by that district heat network or communal heating
  • number and type of meters or heat cost allocators installed in any buildings supplied by that district heat network or communal heating
  • number of final customers supplied by that district heat network or communal heating
  • name and business address of the heat supplier
  • where any analysis as to cost effectiveness or technical feasibility has been carried out pursuant to these Regulations, the results of that analysis together with details of any meters or heat cost allocators which have been installed as a result
  • expected frequency and content of billing information provided by the heat supplier to the final customers
  • any other information reasonably required by an authorised person for the purpose of determining whether the heat supplier has complied with the duties in these regulations

Tool

DECC have produced a tool for the the technical and financial viability testing of individual heating and cooling meters, and heat cost allocators.

DECC heat metering viability tool

MS Excel Spreadsheet, 468KB

Instructions for on use of this tool, along with details for the specification are available below.


DECC heat metering tool user guide
(MS Word Document, 254KB)


DECC heat metering tool specification
(MS Word Document, 154KB)

Legislation

Heat Network (Metering and Billing) Regulations 2014 Statutory Instrument.

Energy Efficiency Directive.

Consultation

The consultation for implementing the EED: metering and billing of heating and cooling has been concluded.

Contact

The advice provided via our enquiry service is based on the best and most up to date information available to us at the time.

We recommend that all enquiries are made via our online enquiries system, by choosing the relevant enquiry form and following the on screen instructions.

Alternatively, by phoning 020 8943 7227, you can leave a message, and an enforcement officer will return your call as soon as possible. Please be aware that this is an automated system and you will not be able to speak with anybody at the time of calling.

Enquiries can also be submitted in writing to:

NMO Enforcement Authority

Stanton Avenue

Teddington

Middlesex

TW11 0JZ

Due to the legal nature and amount of enquiries, we aim to respond to all enquiries within one month.

Source:: Detailed guide: Heat Networks: compliance and guidance

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