The Heat Network (Metering and Billing) Regulations 2014

These regulations came into force at the end of 2014.

Any landlord of a commercial or residential multi-occupied building who supplies (and charges for) what is known as "communal heating", that is heating, cooling or hot water from a central source to tenants, is caught by these regulations.

If cost effective and technically feasible to do so, the landlord (known as a "heat supplier" under the regulations) must ensure that meters (or, in certain circumstances, "heat cost allocators" and "thermostatic radiator valves") are installed to measure the consumption of heating, cooling and hot water by each tenant.  

The deadline for installing the meters is 31 December 2016.

Landlords are under a duty to notify the National Measurement Office of the communal heating system and provide details of its location, type of building and the number of tenants, plus  estimates for the yearly heating capacity, heat generated and heat supplied.  

The deadline for notification of existing systems is 31 December 2015.

Where meters are installed, landlords must ensure that bills and billing information for the consumption of heating, cooling or hot water by tenants are based on actual consumption (if technically possible and economic to do so).  It will be considered technically possible and economically justifiable to do so where the estimated reasonable costs of issuing the bills do not exceed £70 per tenant per year.

The regulations impose civil penalties and criminal offences to ensure compliance.