UPDATE Landlords of multi-let buildings beware: more time for landlords to register

United Kingdom

This article was produced by Nabarro LLP, which joined CMS on 1 May 2017.

Following our alert on 13 March, the new Heat Network (Metering and Billing) Regulations 2014 have now been amended, to the cleverly named Heat Network (Metering and Billing) (Amendment) Regulations 2015 (the New Regulations).

This is good news for landlords, as the New Regulations give them more time to register.

Under the New Regulations, landlords of multi-let buildings that have a central plant for heating and/or cooling systems must:

  1. register with the National Measurement Office by 31 December 2015 (and not 30 April 2015 as previously required);
  2. install individual meters/heat cost allocators for each occupier by 31 December 2016 (unless not cost-effective or technically feasible to do so); and
  3. bill tenants according to their actual consumption.

In summary, the New Regulations apply to landlords of buildings containing more than one tenant, where heating, cooling or hot water is supplied from a central plant and is charged to tenants either directly or indirectly (such as through service charges). The New Regulations apply to both commercial and residential properties.

Failure to comply with the New Regulations can result in criminal penalties being brought against the landlord, including fines. The National Measurement Office also has the discretion to apply civil penalties for more low-level offences.

Landlords must now collate and provide all the relevant information about their communal heating systems for each multi-let building to the National Measurement Office by 31 December 2015. Investigations should also be undertaken now as to the cost-effectiveness and technical feasibility of installing meters or heat cost allocators to allow time for the installation of meters ahead of the deadline on 31 December 2016.

The New Regulations also apply to district heat networks.

For more information, click here.