Heat Network (Metering and Billing) Regulations 2014 Resource Hub

Your resource hub to help ensure compliance with the UK energy efficiency legislation.

The European Union’s Energy Efficiency Directive (EED) has led to new laws in the UK, which every district or community heating scheme in the country has to comply with. The Heat Network (Metering & Billing) Regulation 2014 states new rules about installing meters for monitoring usage and recording details of communal heat schemes.

To help owners of communal and district heating schemes understand the steps they need to take to comply with the regulations we have compiled this hub with useful information, links and frequently asked questions.

We are still clarifying some of the requirements in the regulation with the National Measurement and Regulation Office (NMRO). Therefore this page will be updated regularly as we find out further information.

Latest updates:

Withdrawal of the Heat Metering Viability Tool

July 2015 – The European Commission is updating guidance on the application of cost effectiveness tests for the installation of final customer meters into existing buildings on heat networks. As such, the Heat Metering Viability Tool introduced by the Department of Energy & Climate Change (DECC) has been withdrawn and an alternative version is being developed.  This tool is used by heat suppliers to check if retrofitting final customer metering is feasible on their scheme. Further information.

Change of deadline for notification of heat networks

March 2015 – The Government announced a change to the 30 April deadline in the Heat Network regulations. A new deadline of 31 December 2015 has now been agreed for the notification part of the legislation. As a result of this change, owners of existing heat networks who previously would have struggled to meet the deadline will now have more time to implement the notification duty of the regulations.

Compliance Checklist

heat network steps

If you need further assistance to help understand how the Heat Network Regulations affect you contact us on:

Call 0330 053 5599 or marketing@switch2.co.uk


Heat Network FAQs

This may be an unrealistic question to ask, but are you aware if there has there been any consideration as to what happens if a resident did not want to be metered? I know that this is law, so HAs will have to enforce, but if it turns out that following review the resident is NOT better off then has it been considered whether there is re-course for this? Is this another cost that will end up being chargeable to the Housing Associations?

As we understand it is the Government’s intention to bring heat in line with gas and electricity regulations where metering is mandatory. I would suggest metering and paying on meter reads is expected to be mandatory.
This is a cost that HAs have to carry but the benefits should outweigh the costs, this is certainly what we have experienced.

Is there a process in place yet to ensure that the forms are filled in again in 4 years? Would the NMO lead on this based on the information they have received from HNOs?

We would expect that they will not as they are an enforcement body.

If a scheme is not individually metered and the feasibility study fails is there no further action to be taken?

The heat supplier is obliged to repeat the test every 4 years.You should also ensure that you comply to the billing requirements of the regulation even though there are no final meters.

For individually metered properties we believe bills can be estimated as long as an attempt is made to take a reading at least once a year. Access can be an issue for Housing Associations, so we cannot guarantee time and resource to ensure individual meter readings are taken as and when required. Once a year we can offer this service and provide an appointment to read the meter, but if the resident is not willing to cooperate, would there be a penalty?

If you have installed a quality automatic meter reading (AMR) system which delivers actual meter reads (it does not rely on pulsed outputs) then there is no requirement to access the meter for the read. The situation may be less clear if an AMR system uses pulsed outputs, we would suggest that the organisation  should satisfy themselves that the readings from the pulsed outputs are reliable. One way of doing this would be to carry out sample checks or address this at a planned preventative maintenance visit.

The deadline of 30th April is very close. How do DECC/NMO expect the required work to be completed before this date?

The NMO have advised they “will take a proportionate approach in 2015 based on the broad range of challenges of this new legislation”. We also understand that if the heat suppliers have implemented plans to comply in 2015 this will be acceptable.

There is currently bulk heat metering facilities fitted within the boiler house. Is there also, in this instance, a requirement for bulk heat meters to be fitted to the individual blocks?

Yes you must have a block entry meter if more than one block is connected to the heat network.

Can the prepayment meters, for the purpose of this directive be deemed Heat Cost Allocators?

A prepayment unit (meter) is not a heat cost allocator. But if you have a heat prepayment unit you have a meter anyway.

What are the Heat Network (Metering and Billing) Regulations 2014?

The Heat Network (Metering and Billing) Regulations 2014 implement the requirements in the Energy Efficiency Directive (EED) with respect to the supply of distributed heat, cooling, hot water and cold water.

What is the Energy Efficiency Directive (EED)?

The EED promotes energy efficiency in the EU to achieve the on energy efficiency. It lays down rules to overcome market failures that impede efficiency in the supply and use of energy.

Who enforces the regulations in the UK?

There are many thousands of heat networks in the UK, supplying hundreds of thousands of dwellings, commercial premises, and public buildings. The legislation is enforced in the UK by the National Measurement Office (NMO). The NMO are also responsible for receiving notifications under regulation 3. (https://www.gov.uk/government/organisations/national-measurement-office)

What are my requirements to fit point of entry (bulk) meters?

The regulations state that a meter must be situated at a heat exchanger in the building or at the point of entry of the district heat network pipes into the building. This type of meter is generally known as a bulk meter. There is also an ongoing obligation to continuously operate, properly maintain and periodically check for errors.

What is a district heat network and communal heating?

District heat network means the distribution of thermal energy in the form of steam, hot water or chilled liquids from a central source of production through a network to multiple buildings or sites for the use of space or process heating, cooling or hot water.

Communal heating means the distribution of thermal energy in the form of steam, hot water, or chilled liquids from a central source in a building which is occupied by more than one final customer, for the use of space or process heating, cooling or hot water.

Who are the heat suppliers?

Heat supplier means a person who supplies and charges for the supply of heating, cooling or hot water to a final customer, through— (a) Communal heating; or (b) A district heat network;

Who are the final customers?

Final customers are the end users of the heating supplied by district heat networks and communal heating. Final customers are effectively the purchasers of the heat who have a direct financial arrangement with a heat supplier to provide the heating to them.

What happens if tenants are transient?

See the list of exclusions in Heat Networks Scope Guidance page 4.

In the case where individual customer end point meters are not deemed feasible is there still an obligation under “Billing 9” to raise an annual bill based on the consumption metered at the block level meter?

It is right that wherever heat meters are installed (including block level meters) the final customers’ bills must be based on actual consumption.

Will the NMO or DECC be giving any guidance on how to bill end consumers on blocks that do not have end consumer metering?

Guidance on this has not been produced by the NMO, it may be considered in the future depending on an identified need. The regulations do state that where meters are installed, bills must be based on actual consumption however there’s no specific instruction in the regulations on how to share the cost of heating amongst the residents of any such block. Cost is regularly split equally between all tenants or based on floor space.