Installation and maintenance licences for heat networks

We propose that the installation and maintenance licence should be subject to both conditions and limitations. Further detail about conditions and limitations will be set out in future regulations.

Our proposals cover two types of licence condition, general and specific:

• General licence conditions would apply to every licence, or every licence of a particular description. For example, there could be a general condition which applies to any companies which only build communal heat networks.
• The licence regulator will be responsible for setting general licence conditions. We propose that the regulator must consult on such conditions before they are set or amended and must publish a list of all general conditions.
• General conditions might cover areas such as requiring evidence that the licensee remains an appropriate person to hold the licence; requiring cooperation with the licence regulator and/or the Scottish Ministers on matters about relevant heat networks.
• Specific licence conditions could be applied to specific installation and maintenance licences on a case-by-case basis. For example, there might be something specific about the way a company is organised, or the heat networks it operates, which makes it necessary to apply additional checks using a specific condition.

• It is difficult to predict exactly what specific conditions might cover, or when they might be used. However, including them provides flexibility in the regime in case it is necessary.

Licences may also be subject to limitations. These can limit the rights and powers which a specific licence grants. More information about rights and powers is set out in the section ‘Powers of a Licence Holder’. For example, if a company’s heat networks were built far away from any roads then a limitation might be applied to their licence stating that they cannot use the road works powers. Limitations will ensure licences do not grant rights and powers which the licence holder doesn’t need or want or might accidentally misuse.

Future legislation could allow licence limitations to be used in other ways, to respond to changes and developments in the heat network sector.

After a licence has been granted its conditions and/or limitations can be modified by the licence regulator. Modifications can happen because the licence holder has requested it, or because the regulator decides it is necessary. For example, a company which did not require road works powers when they first applied for a licence might decide they need them in the future. The process for making modifications will be set out in future regulations, but we expect that if the licence holder is requesting a modification, then they will need to make an application and pay a fee to cover the cost of the licensing authority assessing such an application.