Heat Network Regulations Delayed Until 2017

The National Measurement and Regulation Office (NMRO) has announced that the feasibility study and requirement to fit heat meters by December 2016 has been delayed until 2017.

The Heat Network (Metering and Billing) Regulations 2014 came into force in December 2014 under the EU Energy Efficiency Directive.

It affects all businesses within the UK that supply and charge for heating, cooling or hot water to a final customer through communal heating or a district heating network (heat suppliers) including multi tenanted buildings with a shared heating and cooling system. Subject to meters or heat cost allocators being determined as viable for installation and being installed, the heat supplier must ensure that the bills and billing information for the consumption of heating, cooling and hot water are accurate, based on actual consumption and compliant with the regulations.

The first phase of the Heat Network Regulations 2014 required participants to submit notification of communal and district heating systems by 31st December 2015. However, the heat metering viability tool which was intended to identify all those areas where heat sub-metering must be installed is currently being revised by the Department for Business, Energy and Industrial Strategy (BEIS). Therefore, pending the revision of the tool it is advised that no further assessments should be undertaken.

BEIS is working towards launching a public consultation in early 2017 on a revised methodology for assessing the cost effectiveness of metering for district and communal heat networks. Accordingly, the Regulatory Delivery (RD) will take a pragmatic approach for any non-compliance with this requirement until a new tool and re-testing date is in place. The consultation will also seek views on some additional areas where the regulations could benefit from clarification following the first two years of implementation.

Following the planned public consultation, BEIS intend to launch the new cost effectiveness tool and accompanying regulatory amendments later in 2017.

Justine Grant, Senior Energy Consultant at TEAM, said:

“The Financial Conduct Authority (FCA) has confirmed that it would not be appropriate for them (the FCA) to impose fines or other disciplinary measures in respect of a breach of the requirement within the heat network (metering and billing) regulations 2014 (as amended), that certain heat suppliers must test whether it is cost-effective to fit heat meters in multi-occupancy buildings, and where appropriate, fit them by 31st December 2016.”

Heat Network (Metering and Billing) Regulations 2014 – Timetable for Compliance;

The following are dates where the regulation states that requirements need to be met:

  • From 18th December 2014, the fitting of building level meters on multi-occupancy buildings,
    where more than one final customer is charged for the heat supplied, is required.
  • From 18th December 2014 meters, must be fitted for any district heating connection to a newly constructed building or where a major renovation of building on a district heating network.
  • From 31st December 2014 heat suppliers, must meet the billing requirements or for new builds from when the network commences operation.
  • From 31st December 2015, the notification for new build systems must be made on or before it commences operation.
  • The date from which final customer meters must be fitted subject to cost-effective tests will be detailed in the amended regulations planned for 2017.

How TEAM Can Help…

TEAM’s Energy Services can help organisations comply with the Heat Network Regulations 2014.

Want to find out more? Get in touch by calling our experts on 01908 690018 or email enquiries@teamenergy.com.

Power to make change

We believe that people power can change the world. We are here to help you have a positive impact on the planet. Together we can make a difference.

Take the next step

Becoming Net Zero

Leading by example, we became carbon neutral in 2023 and are committed to achieving net zero business emissions by 2030.

Read our strategy

Employee Ownership

As an Employee Ownership Trust we embrace the three pillars of good communication, governance and leadership, putting our people first.

Learn more about us

We will be by your side

Staying at the forefront of industry, we embrace and drive change, delivering solutions at pace and scale to meet the modern challenges of energy and sustainability.

Meet our people