Heat Networks (Scotland) Bill: BRIA

Enforcement, Sanctions and Monitoring

67. The level of enforcement, sanctions and monitoring will depend on the option that will be pursued by the Scottish Government. Detail of proposed enforcement and compliance monitoring was set out in relation to each of the investigated options.

Option 1 – Not legislating

68. This option will not require any additional enforcement, sanctions and monitoring. The only enforcement that will be undertaken as part of Heat Metering and Billing Regulations, however this is currently undertaken by the UK Government.

Option 2 – Lighter touch legislation

69. Introduction of lighter touch legislation would involve enforcement of licensing system. This would be a responsibility of a designated Licensing Authority who would have powers over approving applications for the licences, monitoring the heat network sector by gathering the data from licence holders and ability of revoke licences as an ultimate enforcement action.

70. To ensure that the licensing system is flexible and takes account of different business model, the processes associated with enforcement and monitoring will be developed by subsequent regulations. The Scottish Government will work closely with industry stakeholders during their development.

Option 3 – Heat Networks (Scotland) Bill

71. To enforce the elements of a new regulatory regime, the Heat Networks (Scotland) Bill creates a range of offences that will have different penalties attached to them. Some of the offences created by the Bill include:

• Supplying heating, cooling or hot water to a building in an area by means of heat network without a heat networks licence.
• Offence of failing to comply with enforcement notice in relation to operation without the heat network consent or non-compliance with its conditions.
• Operating a heat network in a relevant heat network zone without a heat network zone permit.
• Intentionally obstructing another authorised person in exercise of their power to enter upon and survey the land.

72. Penalties will in most of the instances include fines, however in many circumstances the Bill also provides for an option to appeal the decision of any authority.

73. The main oversight body that will be monitoring the heat networks market will be the Licensing Authority. It will collect the information from any licence holders who are operating heat networks in Scotland. Additionally, Scottish Ministers will also hold information on any heat network that has received a Heat Network Consent or Permit.

74. Furthermore, Local Authorities will also be required to undertake the consideration of heat network zoning every five years, with first exercise commencing in year one after the Bill receives Royal Assent.

75. Majority of the processes behind enforcement, sanctions and monitoring connected with the Heat Networks (Scotland) Bill will be introduced by the subsequent regulations and their impacts assessed separately.