The document summarizes recent regulatory updates to heat networks in the UK. It notes that the NMRO and BRDO merged to form Regulatory Delivery within the new BEIS department. Regulations on retrofitting individual meters are on hold pending viability tests. BEIS will publish notification returns from networks by the end of the year. A consultation on new regulations is planned for early 2017 addressing issues like clearer rules and a new viability tool. The tool will categorize networks as viable, requiring a test, or exempt from meters based on a cost-benefit analysis over 10 years. BEIS will collect cost data and release an aligned new tool as part of further regulation development.

1. Heat Networks
Regulations Update
Chris Smith

2. What an Exciting Summer
• NMRO merged with BRDO on 1 April 2016 to form
Regulatory Delivery
• BEIS merged with DECC to form BEIS
• Now a new Directorate within BEIS
• Focus on better regulatory delivery
• Build a national “centre of excellence” for enforcement

3. Present Regulations
• Retrofitting of individual meters subject to viability on
hold
• Fitting of individual meters subject to viability in new
build and renovated communal on hold
• Not on hold:
– Notifying of networks
– Fitting of block level meters
– Fitting of individual meters
– Maintaining meters
– Billing subject to actual use

4. Notifications
• Received circa 18,000 notifications by end of 2015
• Presently staff and DECC analysts working on QA
• BEIS to publish later this year
• Many returns have errors and will need to be followed up
• List of late organisations and agreed return dates
• Starting to chase
If you have notifications you are late with and working on
let us know

5. New Regulations
• BEIS policy plan for
– Consultation early 2017
– new regulations 2017
• Make regulations clearer
• Deal with snags
• BEIS policy liaising with Commission over block meters
• BEIS policy planning to set a new date for fitting of
meters
• New viability test and new tool
• New EED 2017?

6. VIABILITY TOOL

7. Viability Tool Principles
£ fuel savings
Installation and
running costs
>=
10 Year period

8. New Viability Tool Principles
• First stage test categorise into: viable/test/exempt
• Use actual numbers and not benchmark costs for energy
use
• Market costs for meters, fitting and billing
• NPV test over 10 years
• Allow testing of networks or sections of networks, not
every building

9. Viable–Test–Exempt from Consultation Workshops
Exempt
 Transition medium as per
2014 regs (steam, cooling
other than liquids etc)
 Multiple entry point of
pipework
 Grade 1 (2?) listed
 EPC/DEC “A” (B?) rated
 Low energy properties
<15kWh/m2/y
 <10% heat used by final
customers in building
 Planned limited life
 Hot water only
 Vulnerable groups
Test
 All not in other
categories
Viable
 New build connections to DN
 Major renovations on DN
 New build communal
networks
 Buildings that are already
metered
 EPC/DEC “F-G” rated

10. Calculation

11. New Tool
• Release aligned with new regulations
• Will be based on principles discussed
• Cover meters and HCAs
• Assumptions in tool will be founded on evidence base
• Tool’s use will not be statutory, you can use your own
method but will need to justify

12. Our Next Steps
• Collect evidence on costs for tool
• Regulation development
• Impact assessment being worked on now
• Full consultation in Summer 2016
• Inspection programme focused on notification returns
and heat supplier support
• Continued engagement with Commission
• EED Recast

13. Thank You and Questions
Website
www.gov.uk/heat-networks
Enquiry Service
www.rohs.bis.gov.uk/enquiry.aspx
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