Installation and maintenance licences for heat networks
Objectives of Installation and Maintenance Licence
The main objective of installation and maintenance licences is to enable heat network companies in Scotland to access the rights and powers they require.
Many utility providers, such as gas and electricity companies, are considered ‘statutory undertakers’ with their activities and responsibilities defined in legislation such as the Electricity Act 1989. As ‘statutory undertakers’ they are given special rights and powers which allow them to carry out their activities, for example by digging up roads or accessing land. We recognise that heat network entities require similar powers to install vital infrastructure to construct and develop heat networks, and without these similar rights and powers may be unable to deliver at pace and scale. These rights are also very important for maintenance and repair, especially in emergency situations.
Therefore, the installation and maintenance licensing proposals in the draft Heat in Buildings Bill include provisions for an opt in licence which may grant licence holders rights and powers including:
- compulsory acquisition of land;
- exercising network wayleave rights;
- access to land to remove, replace or repair apparatus, or carry out survey of land; and
- carrying out road works.
These rights and powers, which are described in more detail in the ‘Powers of a licence holder’ section, will place licensed heat network entities on a comparable basis to other utility providers.
Our proposals for an opt in licensing regime allow for a proportionate approach, ensuring that only heat network developers and operators who require the rights and powers need apply. Heat network developers and operators who have no need for the rights and powers will not need to apply unnecessarily and may be able to carry on with construction and development of heat networks without these additional powers. For example, a developer constructing a communal heat network such as a single block of flats served by a boiler room would not necessarily need the rights and powers associated with the licence. This opt in approach allows heat network organisations to decide whether they will need the rights and powers associated with the licence and therefore whether they need to apply for a licence or not.