heat rd template september 2016

Heat Networks Regulations Update

Chris Smith

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

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

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

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?

VIABILITY TOOL

Viability Tool Principles

£ fuel savings Installation and running costs>=

10 Year period

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

Viable–Test–Exempt from Consultation WorkshopsExempt

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

Calculation

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

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

Thank You and Questions

Websitewww.gov.uk/heat-networks

Enquiry Servicewww.rohs.bis.gov.uk/enquiry.aspx

E-mail alerts sign uphttps://public.govdelivery.com/accounts/UKNMO/subscriber/new