Popular in the 1960s and 70s (less so in the 80s, 90s and noughties) communal heating systems are back!
Older systems tended to work on the basis of fixed annual charges, regardless of how much energy was being consumed by a particular customer. It was often easier for customers to leave the heating on 24/ 7/ 365 and just open the windows if they wanted to cool down.
Nowadays, what with society moving in a much greener direction and the largest share of CO2 emissions from UK buildings coming from their space and water heating systems, such practices aren’t considered sustainable. And, what’s more, there are laws that need to be complied with.
In the heat of the moment
Someone supplying heat, hot water and/or cooling through a communal system may be bound by the Heat Network (Metering and Billing) Regulations 2014. They could be a landlord or someone else. The system might be a boiler in the basement of a block of flats serving all of the flats or a central plant building providing hot water to all of the houses on an estate. The aim of the Regulations is to ensure that the amount that users of heating, cooling and hot water pay for their use is based on their consumption. The assumption being that this will incentivise them to consume less.
Click here to read Devonshires full briefing.
For further information please contact Neil Toner, Partner, Head of Real Estate at Devonshires.
