Heat network licensing: equality impact assessment

Background

We are proposing to introduce an opt in licensing regime within the draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland Bill) (“the draft Heat in Buildings Bill”), which will grant rights and powers for things like roadworks, survey and compulsory purchase to those heat network organisations who choose to apply for a licence. This is intended to replace the mandatory licensing of the Heat Networks (Scotland) Act 2021 which would apply to all network operators and would require additional applications for the rights and powers.

The proposals for the Scottish licence within the draft Heat in Buildings Bill will complement and work alongside GB authorisations and introduces a proportionate opt in Scottish licensing regime for the heat network sector. Providing licensees with similar statutory undertaker rights as other utility providers in Scotland and like the approach being taken for heat networks in England.

The introduction of this licensing regime will be of benefit to heat network organisations who plan to install and maintain heat networks in Scotland. Allowing them access to rights and powers similar to other utility providers such as road works, compulsory purchase and wayleave rights. These rights and powers will allow the organisation to develop and construct heat networks at pace and scale required to help contribute towards meeting Scotland’s net zero targets.

This will also affect the land and asset owners where access agreements cannot be met, and compulsory purchase or wayleave rights may be the only option available for the necessary development of the network. It is work noting compulsory purchase will require an application to and approval of Scottish Ministers to ensure it is necessary in each case.