The Heat Network (Metering and Billing) (Amendment) Regulations 2020

Insertion of regulation 2A

4.  After regulation 2 (interpretation) insert—

“Classes of building

2A.— (1) The following buildings are in the viable class—

(a) a building not in the open class or the exempt class which is connected to communal heating on or after 1st September 2022, where the building is newly constructed or was originally constructed for connection to communal heating;

(b) a building which is connected to a district heat network on or after 27th November 2020, where the building is newly constructed or was originally constructed for connection to a district heat network;

(c) an existing building where the building is supplied by a district heat network and on or after 27th November 2020 the building undergoes major renovations relating to the technical services of that building;

(d) a building to which regulation 7(2) applied before that regulation was revoked on 27th November 2020.

(2) The following buildings are in the open class—

(a) a building not in the exempt class which is connected to communal heating on or after 27th November 2020 and before 1st September 2022, where the building is newly constructed or was originally constructed for connection to communal heating;

(b) a building not in the exempt class which is connected to communal heating on or after 1st September 2022, where the building is newly constructed or was originally constructed for connection to communal heating and where—

(i) there is more than one entry point for the pipes of the communal heating into any private dwelling or non-domestic premises in the building; or

(ii) the building or any part of the building is supported housing, almshouse accommodation or purpose-built student accommodation;

(c) an existing building not in the viable class or the exempt class.

(3) Subject to paragraph (4), the following buildings are in the exempt class—

(a) a building not consisting mainly of private dwellings which is connected to communal heating on or after 27th November 2020, where the building is newly constructed or was originally constructed for connection to communal heating and where—

(i) heat is distributed in the building by means of a system other than hot water; or

(ii) cooling is supplied and the cooling distribution system uses a transfer fluid other than water;

(b) an existing building not in the viable class and not consisting mainly of private dwellings, where—

(i) heat is distributed in the building by means of a system other than hot water; or

(ii) cooling is supplied and the cooling distribution system uses a transfer fluid other than water;

(c) an existing building not in the viable class in which more than 10% of the total number of private dwellings and non-domestic premises are subject to a leasehold interest, where the lease—

(i) began before 27th November 2020; and

(ii) contains a provision which would prevent billing based on actual consumption unless the lease is varied, renewed, or comes to an end;

(d) an existing building not in the viable class, where the building or any part of the building is—

(i) supported housing;

(ii) almshouse accommodation; or

(iii) purpose-built student accommodation.

(4) A building mentioned in paragraph (3)(c) or (d) is not in the exempt class if, for each private dwelling and non-domestic premises in the building—

(a) a meter to which regulation 4(3) or (4) applies has been installed; or

(b) heat cost allocators, thermostatic radiator valves and a hot water meter to which regulation 6(2) applies have been installed.

(5) For the purpose of paragraph (1)(c)—

“building envelope” means the integrated elements of a building which separate its interior from the outdoor environment;

“major renovations” means the renovation of a building where the total cost of the renovation of the building envelope or the technical services is higher than 25% of the value of the building, excluding the value of the land upon which the building is situated;

“technical services” means technical equipment for the heating, cooling, ventilation, hot water or lighting (or any combination thereof) of a building; and

“value of the building” means the reinstatement costs of the building for insurance purposes at the time immediately before the renovation of the building is commenced.”.