Ensure your networks are compliant with current and forthcoming regulation
Heat networks are a largely unregulated sector, with the only compliance requirements currently provided through the Heat Network (Metering and Billing) 2014 Regulations (HNMBR). However, a new Market Framework for heat networks is on the horizon, with Ofgem expected to become the market regulator from late 2023.
The Heat Network (Metering and Billing) Regulations: the 2020 revisions to the HNMBR require heat network suppliers to assess all their non-metered schemes by November 2021 for the cost effectiveness of installing either meters or heat cost allocators (HCAs). Where metering equipment is deemed to be cost-effective, the installations must then be completed by September 2022. The HNMBR also require heat network operators to notify the Office of Product Safety and Standards (OPSS) of all their heat networks every four years (which includes an update of the cost-effectiveness assessment), and of new heat networks when they go live in the intervening years.
Heat Network Market Framework: primary legislation to enact the Heat Network Market Framework is expected in 2022. It will give heat network operators equivalent statutory right and power to other utilities through a licencing arrangement, and at the same time put in place consumer protections to ensure customers receive good quality outcomes at a fair price as the market expands.
Chirpy Heat can help ensure your heat networks remain compliant by:
- Carrying out independent cost-effectiveness assessments of your heat network using our tried and tested methodology
- Keeping your OPSS notifications up to date and compiling the data required as part of the four-year cycle
- Completing regulation readiness reviews of your portfolio and advising where your consumer protections can be strengthened, for example around heat supply agreements, vulnerable customers and tariff transparency
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