The Heat Network Regulations are catching up with housing associations

As the Department for Business, Energy and Industrial Strategy (BEIS) starts to chase non-complying organisations, are housing associations about to be caught out?

The Heat Network Regulations require organisations that supply heating, cooling or hot water through communal/district systems to submit a notification document to the enforcing body, install meters, and bill customers based on actual supply. The deadline for the first compliance stage was way back in December 2015. Despite the fact that the Regulations have been around for a couple of years, and that non-compliance could result in fines and/or civil sanctions, many organisations are not yet aware of their obligations.

In our experience, of all the organisations covered by the Regulations, housing associations are most at risk of non-compliance. This is because: they often have large and varied property portfolios which include many systems captured by the Regulations (communal and district heating and cooling systems); information on the systems is often spread across multiple asset management databases, spreadsheets, hardcopy files and even simply in the heads of site managers; and there appears to be a widespread lack of awareness of the need to comply across the industry.

Carbon Smart has helped many of our housing association clients to fulfil their compliance duties. A recent example was Nehemiah UCHA, a housing association based in the West Midlands. Due to the complexity of the regulations, and being a small organisation, Nehemiah has limited internal resources and asked for our help to take on the Phase 1 compliance tasks. To do this we:

  • Evaluated the Nehemiah portfolio and helped them to understand their obligations
  • Collated the essential compliance information
  • Conducted a gap analysis of any missing/incomplete data, and obtained this on their behalf
  • Completed the required calculations
  • Submitted the required compliance notification forms

“Carbon Smart has helped us to accurately interpret the legislation relating to The Heat Network (Metering and Billing) Regulations 2014 and Amendment Regulations 2015. Carbon Smart’s knowledge and understanding of the regulations has help to guide us through the data collection and submission process, ensuring our business is compliant. The level of detailed information and customer service has been exceptional. Having our consultant on the end of the phone has proved invaluable”.
Bernadette Kennedy, Finance Officer, Nehemiah UCHA

To comply with the next stage of the regulations, the following steps would be to:

  • Assess whether meters/cost allocators are cost-effective/technically feasible to install where they do not currently exist
  • Deliver a programme of meter installation, if required

For more information on the Heat networks regulations, please read our guide paper here and my articles in edieand The Energyst Magazine.


If you are not sure whether you need to comply, or know you qualify but are yet to take action, contact our team on 020 7480 0450 or email Daniel.murray@carbonsmart.co.uk.