The heat is on
The heat network sector is set to see major changes in 2025, with the design, operation and management of heat networks across the UK likely to be heavily impacted by new regulations. Alex Hill, Managing Director at Whitecode Consulting, explains the importance of these new regulations and why it’s vital that managing agents and building owners seek independent advice to ensure their heat networks fully comply.
Under the Heat Network Technical Assurance Scheme (HNTAS), all new-build heat networks, along with 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. However, there is currently little transparency when it comes to heat network performance. The aforementioned regulations are set to change that, while enhancing accountability for anyone involved in the planning, management, construction and maintenance of heat networks.
With the HNTAS set to ensure a minimum level of reliability and performance, heat networks will be able to deliver affordable and reliable heat, along with reduced emissions, to UK communities.
What are the HNTAS regulations?
As a result of the upcoming HNTAS regulations, legacy and new heat networks will have to demonstrate they have achieved the mandated minimum technical standards.
Operating as the regulator, Ofgem will award a licence to a technical standards Code Manager. They will maintain the code documents, including any technical specification for what the heat networks must comply with, assurance procedures for how compliance is demonstrated, and any assessor requirements on who is able to assess compliance.
Planned for the second half of 2024, a pilot programme for the HNTAS will likely see the government asking existing heat network operators and assessors to take part.
Engagement and communication throughout this programme will help Ofgem and the government to ensure the assurance procedures and requirements work in practice.
Why are they being introduced?
Often, well intentioned managing agents and contractors will attempt to muddle through heat network management. They may not even be aware of the necessity to maintain efficiency. In fact, in the past, heat networks have only been judged by whether they are operational or not. The upcoming heat network regulations are being introduced to ensure that consumers are given better access to more energy efficient and reliable heat networks and greater protection, such as compensation, if they lose access to heating.
As a way of boosting consumer protections to keep pace with a growing market, the new HNTAS regulations will give consumers similar rights to those living on traditional gas and electricity connections. 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, it’s essential that anyone responsible for managing and monitoring heat networks, such as managing agents, considers not just whether it works or not but how efficient it is.
How do they affect those responsible?
The owners of heat networks, and also property owners and building contractors, will likely be impacted by the new regulation changes. For example, building owners with a heat network, or heat network owners, will likely become the regulated party. This means they will need to comply with any legally-binding duties relating to the operation, management and reporting of the heat network. Furthermore, information on the efficiency of the network and how energy tariffs are calculated will also need to be provided.
Many building owners don’t have planned maintenance contracts, meaning when it comes to issues with their heat networks, they’re more reactive than proactive. This enhances the need for heat network efficiency to be written into their contract and is even more pertinent given the new regulation changes coming next year.
The upcoming HNTAS regulations will give tenants and building owners the ability to look into what legislation is in place and whether building owners are complying. As a result, it’s important for anyone responsible for the heat network to prioritise the governance and maintenance of the network. Doing so will help them comply with regulations but also ensure a more affordable and reliable supply of heat for the occupants.
The importance of seeking advice and guidance
If the owner of the network refuses to make the necessary changes or cannot afford the costs of doing so, it’s important to consider the implications. Additionally, if the responsibility for the management of the network sits between different parties, who will need to ensure compliance?
Non-compliance and waiting until regulations come into effect to identify responsibility and make the required changes could mean potential sanctions from Ofgem, in addition to damaged reputation and penalties. For anyone responsible for the management of heat networks and building owners, it’s imperative that whenever there is a grey area, such as in the assessment of heat networks, they speak to experienced professionals. For example, specialist consultants will assess the network and identify what won’t comply with regulations before providing advice on how to achieve compliance.
In addition to ongoing guidance and support, plus the peace of mind that comes with seeking professional assistance, receiving advice from experienced consultants will enable any defects to be quickly identified and extensive heat network plans to be configured.
Anyone responsible for the management of heat networks should also seek advice from certified CIBSE Heat Network Consultants and a consultancy firm on CIBSE’s new heat networks consultants register.
Ensuring better network efficiency and full compliance for managing agents and building agents can also be ensured by improving education on how heat networks work and how they are maintained. This will also reduce the lack of understanding and current skills gap in the industry, with some heat network installations not being carried out properly due to engineers not being familiar with regulations.
Benefits for tenants
Currently, there is much less protection for consumers. For example, even if tenants initially take out a very reasonable and affordable energy tariff, if the heat network isn’t working efficiently, that cost will soon mount up.
The government is aiming to increase the amount of heat from heat networks to as much as 20% by 2050. This will mean the regulations will set certain technical standards while also providing consumer protections for customers.
Utilising much more performance based assessments, the upcoming HNTAS will enable the better management and monitoring of efficiency. Any heat networks not currently performing efficiently will therefore need to be updated and improved to meet the strict regulations.
Consequently, end users will have more choice and flexibility when it comes to choosing their energy tariff and, importantly, the chance to reduce their energy consumption and expenditure.
When it comes to these new regulations, building occupants and tenants will be the biggest winners, as they’ll have the peace of mind of knowing they’re paying a fair price for their heating because their heat network is working efficiently.
With the HNTAS regulations rapidly approaching, building owners and anyone responsible for heat networks needs to act now to ensure their systems are ready to meet the upcoming technical standards. This will help them to manage costs and set realistic tariffs while also making sure their buildings are more attractive to both future and existing tenants.
