The following Energy guidance note Produced in partnership with Sandy Abrahams of Lux Nova Partners provides comprehensive and up to date legal information covering:
In the UK, District Heating Networks (DHN) provide heating to multiple customers within a building (sometimes referred to as communal heating) or a number of buildings (referred to as district heating) using a common heat generation source(s) and a common heat distribution network of pipes and equipment. The heat is provided in the form of hot water (although sometimes, rarely this is steam but increasingly systems are moving towards circulating lower temperature, ‘ambient’ warmth). Typically, where a DHN spans multiple buildings, heat exchangers are used to hydraulically separate a central system from local, building systems, allowing different pressures and rates of circulation and easier control of temperatures (and ownership) in local buildings.
The regulatory regime applicable to DHN is currently limited, notwithstanding that DHN schemes tend to be physical and commercial monopolies in relation to the heat that they provide, with customers rarely having any choice in relation to their district heating provider. Gradually, various mechanisms for governance are being introduced by those putting together such schemes and, including through the voluntary Heat Trust scheme. In addition, the first heat specific regulation came in as a result of EU regulation. More recently, the Competition Markets Authority (CMA) investigation (see further below) is, however, paving the way to further regulation in England and Wales, with the Department of
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