Heat network licensing: partial business and regulatory impact assessment

Section 4: Additional implementation considerations

Enforcement/ compliance

The proposed installation and maintenance licences will be subject to conditions and limitations and anyone who obtains a licence may be required to demonstrate that they are complying with these. This might include, for example, providing evidence to the licence regulator that they continue to be involved in heat network installation and maintenance and that they have the financial resources to provide any compensation necessary (for example having insurance in place before conducting road works).

The details of the licensing regime including monitoring requirements and any necessary enforcement or penalties would be set out in future secondary legislation, and are unavailable at the time of this Partial BRIA.

UK, EU and International Regulatory Alignment and Obligations

Internal Market/ Intra-UK Trade

The proposed installation and maintenance licence regime will reflect a similar regime being introduced in England under the Energy Act 2023. This will ensure that Scottish organisations have access to similar rights and powers as those south of the border, without being subject to additional or duplicate regulation.

International Trade Implications

None identified.

EU Alignment consideration

Not applicable. There is no equivalent EU requirement to provide heat network rights and powers.

Legal Aid

No impact identified at this time – this will be considered under the Final BRIA accompanying any future legislation.

Digital impact

No impact identified at this time – this will be considered under the Final BRIA accompanying any future legislation.

Business forms

Any future licensing regime will involve the development of application forms and other associated paperwork. This will be considered under the Final BRIA accompanying any future legislation.