Introductory
Section 1: Meaning of “heat network”
4.Subsection (1) defines a “heat network” for the purposes of this Act as a district heat network or a communal heating system and makes clear that the source of production of thermal energy forms part of the heat network (subsection (4)).
5.Subsection (2) provides that district heat network is a network by which thermal energy is distributed from one or more sources of production to more than one building. Subsection (3) provides that a communal heating system is a system by which thermal energy is distributed from one or more sources of production to one building comprising more than one building unit.
6.Subsections (5) and (6) provide definitions of “thermal energy” and “building unit”.
7.Subsection (7) allows the Scottish Ministers by regulations to modify or further define the meaning of “heat network”, “district heat network”, “communal heating system” or “thermal energy”.
Section 2: Requirement for heat networks licence
8.Subsection (1) prohibits any person from supplying thermal energy to a building through a heat network unless the person holds a “heat networks licence” (defined in subsection (5)). A person who contravenes subsection (1) commits an offence (subsection (2)). Subsection (3) provides for a reasonable excuse defence in relation to the offence in subsection (2). Subsection (4) provides that a person who commits such an offence can be prosecuted either on summary complaint or on indictment and is liable to a fine, which on summary conviction may not exceed the statutory maximum. The statutory maximum is set out in the Criminal Procedure (Scotland) Act 1995, as amended, and is currently set at £10,000 (see section 225(8) of that Act, as read with the definition of “statutory maximum” in schedule 1 of the Interpretation and Legislative Reform (Scotland) Act 2010).
Section 3: Exemptions from requirement for heat networks licence
9.Subsection (1) allows the Scottish Ministers by regulations to make exemptions from the requirement to hold a heat networks licence in certain circumstances or in relation to heat networks of a certain description.
10.Under subsection (2) the Scottish Ministers can direct that the requirement to hold a heat networks licence does not apply to a particular person, to persons of a specified description, or to heat networks of a specified description. A direction made by the Scottish Ministers must be issued in writing, published in such manner as they consider appropriate (subsection (3)) and may be revised or revoked (subsection (5)). An exemption may be granted (by regulations or by a direction) either indefinitely, or for a specified period, and either unconditionally, or subject to conditions (subsection (4)).
11.Regulations or a direction granted under this section may make different provision for different areas (subsection (7)).
Section 4: Meaning of “licensing authority”
12.This section defines “licensing authority” as the Scottish Ministers or such other persons as the Scottish Ministers may designate as the licensing authority by regulations.
