Major heat network regulation changes are coming in 2025, set to heavily impact the design, operation, and management of heat networks across the UK. Consequently, anyone tasked with the management of these networks, such as building owners and managing agents, will need to ensure compliance. Alex Hill, Whitecode Consulting’s managing director, explains what the new regulations are and underlines the increasing importance of seeking advice and guidance from experienced specialists.
The upcoming Heat Network Technical Assurance Scheme (HNTAS) will mean all new-build heat networks and existing legacy networks will need to meet key performance indicators and minimum technical standards, such as pipe insulation and efficient water flow temperatures. Those that do will gain Heat Network Certification.
As it stands, there is currently very little transparency when it comes to heat network performance. The forthcoming regulations are set to change that, while also enhancing accountability for anyone involved in the maintenance, construction, management, and planning of heat networks.
Designed to ensure a minimum level of reliability and performance, the HNTAS will not only help heat networks deliver affordable and reliable heat to communities across the UK but also reduce carbon emissions.
What are the HNTAS regulations?
To increase quality and trust, the upcoming HNTAS regulations will require legacy and new heat networks to demonstrate they have achieved the mandated minimum technical standards.
Ofgem, acting as the regulator, will award a licence to a technical standards Code Manager. They will maintain the code documents, including any assessor requirements on who is able to assess compliance, any assurance procedures for how compliance is demonstrated, and technical specification for what the heat networks must comply with.
Planned for the second half of 2024, a pilot programme for the HNTAS will likely see the government asking heat network operators and assessors to take part. Regular engagement and communication throughout the programme will help Ofgem and the government to ensure the assurance procedures and requirements work in practice.
Why are they being introduced?
While often well-intentioned, managing agents and contractors can sometimes attempt to muddle through the complex process of heat network management. Indeed, many of them may not even be aware of the necessity to maintain efficiency. Additionally, heat networks have typically only been judged by whether they are operational or not.
The upcoming heat network regulations are being introduced to make sure that consumers are given better access to more energy efficient and reliable heat networks and greater protection, such as compensation, if they ever lose access to heating.
These new HNTAS regulations will give consumers similar rights to those living on traditional gas and electricity connections, enabling consumer protections to keep pace with a growing market. Additionally, more vulnerable customers, such as those living with health conditions, or the elderly, may be given access to increased protections.
With that in mind, managing agents and anyone else responsible for managing and monitoring heat networks should consider not just whether they work but how efficient they are.
How do the regulations affect those responsible?
Building owners and contractors, along with the owners of heat networks, will likely be impacted by the new regulation changes.
For example, heat network owners or any building owners with a heat network will typically become the regulated party. Consequently, they will need to comply with any legally-binding duties relating to the management, reporting, and operation of the heat network. Furthermore, information on the efficiency of the network, and how energy tariffs are calculated, will also need to be provided.
Building owners won’t typically have planned maintenance contracts, either, meaning they’re more reactive than proactive when it comes to heat network issues. As a result, heat network efficiency will need to be written into their contract, especially important with the new regulations coming into place next year.
The new HNTAS regulations look set to give tenants and building owners the opportunity to assess what legislation is in place and whether building owners are complying. Consequently, anyone responsible for the heat network will need to prioritise the governance and maintenance of the network. This will help them comply with regulations and ensure a more affordable and reliable supply of heat for the occupants.
The importance of seeking advice and guidance
It is absolutely essential to consider the implications if the owner of a network cannot afford the costs of making the necessary changes or refuses to do so. Additionally, who will need to ensure compliance if the responsibility for the management of the network sits between different parties?
Full non-compliance, or waiting until regulations come into effect to identify responsibility and make the required changes could mean potential sanctions from Ofgem, damaged reputation, and penalties.
It’s paramount that building owners and anyone responsible for the management of heat networks speak to experienced professionals, especially when there is a grey area, such as in the assessment of heat networks. For example, consultants will assess the network and identify what won’t comply with regulations before providing advice on how to achieve compliance.
Receiving advice from specialist consultants will not only see any defects quickly identified, it will also mean comprehensive heat network plans can be configured and ensure true peace of mind from having ongoing support.
A further recommendation would be for anyone responsible for heat network management to seek advice from certified CIBSE Heat Network Consultants and a consultancy firm on CIBSE’s new heat networks consultants register.
Improving education on how heat networks work and how they are maintained will also ensure full compliance for managing agents and building owners, and better network efficiency. Additionally, this will reduce the current skills gap and a lack of understanding in the industry, with many heat network installations not being carried out properly due to engineers not being familiar with regulations.
Tenants will see the benefits
There is currently very little consumer protection. Even if tenants initially take out a very reasonable and affordable energy tariff, costs will soon mount up if the heat network isn’t efficient.
The new regulations, along with the government’s plan to increase the amount of heat networks to as much as 20% by 2050, will set certain technical standards while increasing consumer protection.
Promoting better management and monitoring of efficiency, the upcoming HNTAS will use much more performance-based assessments to ensure that any underperforming heat networks will need to be updated and improved.
The biggest winners of these new regulations will be building occupants and tenants. They’ll have more flexibility and choice in regard to choosing their energy tariffs and the opportunity to reduce their energy consumption and expenditure. Additionally, they’ll know they will be paying a fair price for their heating because the heat network is working efficiently.
With the HNTAS regulations just months away, anyone responsible for heat networks needs to ensure their systems are compliant with the upcoming technical standards. This will ensure manageable costs and realistic tariffs while also ensuring more attractive buildings for future and existing tenants.