Heat networks target 2035 consultation: business and regulatory impact assessment - partial

8. Scottish Firms Impact Test (SFIT)

Most of the heat networks operating in Scotland can be classified as small to medium size enterprises. Typically, the networks would outsource many of their activities to contractors or arms-length organisations.

As part of the Heat Networks Scotland BRIA, research was carried out to determine the impact on Scottish firms. The main element of the proposals that was identified to impact existing organisations in the sector was the introduction of Heat Networks Licensing. Since most of the organisations consulted as part of the Scottish Firms Impact Test were small or medium size they highlighted the challenges around the capacity to handle any regulatory burden. However, all of the stakeholders were able to also identify a range of benefits resulting from Heat Networks (Scotland) Bill proposals. Reference should be made to the Heat Network Scotland BRIA for details on the benefits and challenges identified.

Feedback provided by stakeholders was taken into consideration when developing proposals for the Heat Networks (Scotland) Bill. In particular, the provisions regarding licensing have been developed to allow for flexibility in developing the preferred licensing process.

The stakeholders did not provide any monetary estimates in relation to the impacts the regulations may have on their businesses.