Deregulation Act 2015 part 2: Heat Network Regulations 2014

Deregulation Act 2015 part 2: Heat Network Regulations 2014

Sarah Coates-Madden looks at some of the housing-related changes being brought in by the Deregulation Act 2015, which received Royal Assent on 26 March 2015. This week, she discusses the changes relating to the Heat Network Regulations 2014 and what effect they will have on landlords of private residential properties.

Heat Network Regulations 2014

These new obligations apply to landlords operating commercial and residential property lets to multiple occupants. 

They will apply where the landlord “supplies and charges for the supply of heating, cooling or hot water to a final customer through communal heating." A landlord heating the building using a central boiler and charging the cost back to the individual tenants (usually via a service charge) is the most obvious example.

The communal systems need to be registered with the National Measurement and Regulation Office (NMRO), who are the enforcement authority, by 30th April 2015 and then re-registered every four years. 

You must also notify the NMRO for any new system installed after this date before it becomes operational.  

These regulations apply to both commercial and residential property in both the public and the private sector. Although there is a small list of exemptions.

What this means for you

Before 30th April 2015

You must provide the NMRO with information about the heating system. This includes the location and types of building, what metering equipment is installed, the number of customers (tenants) and the capacity of the heating system.

Before 31st December 2016

You may be required to install meters, or heat cost allocators, to each individual occupier unless these measures are not cost-effective. The regulations contain detailed guidelines on when installation will not be considered cost-effective. But, generally, they involve looking at the cost of installation versus the projected energy savings.

Where the projected energy savings over a 10 year period are likely to be more than the cost of installation, you'll be required to comply with this obligation. If it's not considered cost-effective, you must review this every four years.

Landlords may need to call in assistance from energy experts to compile this data, and will need to determine whether these costs are recoverable from their tenants.

Make sure you've complied with the regulations by the due date to avoid penalties. 

Need advice? We can help you

Call Sarah Coates-Madden now on 01482 324252. 

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