Regulation and Compliance
Regulation is never simple. Compliance should be.
Heat networks are already subject to detailed regulation and more regulation is on the horizon. With the risk of unlimited fines for non-compliance, now is the time to get regulation-ready.
Chirpy Heat has worked with housing providers across the UK to make sure that they are compliant today and have put in place what is needed for the future. We provide:
- Focused, clear assessments and action planning for your current regulatory position and build the foundations for what’s needed for the future
- Heat network insights through Heat Manager – our full virtual heat management service – to help you maintain your position of compliance
- Simple step by step processes to keep you on the right side of regulation so that you can get on with the day-to-day job of managing homes and delivering great service for customers
Issues
Regulation now and tomorrow
Heat network regulation is rapidly developing with a range of new regulations already in place and new ones being rolled out in the next few years. The Heat Network (Metering and Billing) Regulations already require heat network operators to notify their heat networks to the Office for Product and Safety Standards (OPSS), install metering equipment where it is viable to do so and ensure customers are accurately billed for their consumption. This regulation will be backed by a range of sanctions including unlimited fines.
The next step is full regulation of the heat network market with scheme owners and managers treated the same way as gas and electricity suppliers and regulated by Ofgem.
This creates significant challenges for housing providers trying to manage schemes in their portfolio. Chirpy Heat aims to make compliance as easy as possible and keep housing providers on the right side of the regulations.
Our aim is always to keep it simple and understandable – we identify your regulatory requirements and current risks and provide a clear action plan. We can even complete the key regulatory requirements for you to ensure you are fast tracked to compliance.
Chirpy Heat will help ensure your heat networks remain compliant by:
- Carrying out independent cost-effectiveness assessments of your heat network using our tried and tested methodology
- Keeping your OPSS notifications up to date and compiling the data required as part of the four-year cycle
- Completing regulation readiness reviews of your portfolio and advising where your consumer protections can be strengthened, including heat supply agreements, vulnerable customer policies and tariff transparency
Case Study
Chirpy Heat was approached by a client who had been served with a regulation enforcement notice by the OPSS. As well as falling behind with their heat network notifications, they were also unaware of the change in regulations that required heat network operators to complete cost-effectiveness assessments on unmetered schemes.
Chirpy Heat attended meetings with the client and regulator to agree scopes of work and timescales, allowing the regulator to see a clear pathway to how the client would achieve compliance in a timely manner.
In order to successfully achieve compliance, Chirpy Heat mapped out a timeline including gathering information, assessing the portfolio for exempt schemes and carrying out the cost-effectiveness assessments which sometimes included site visits. We kept OPSS updated throughout the process and submitted all the regulatory documentation on the client’s behalf.
Due to the methodical approach and clear communication with all parties, Chirpy Heat were able to ensure that the client adhered to current and upcoming regulation ahead of the agreed deadline, thus avoiding any potential fines. Chirpy Heat also provided other findings and areas for concern discovered during the project, such as district heat networks not having the required bulk heat meters installed, or VAT and Climate Change Levy (CCL) being charged to schemes where it was not applicable.
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