Installation and maintenance licences for heat networks

Part 6 of the Heat Networks (Scotland) Act 2021 sets out the rights and powers that could be granted to the installation and maintenance licensee following approval of their application to the licensing regulator. These powers were previously agreed by the Scottish Parliament, and we do not propose to change them using the draft Heat in Buildings Bill. A summary of the rights and powers are listed below:

• Compulsory acquisition of land: Allows a licence holder to compulsorily buy land that is required for the construction or operation of a heat network, subject to the usual processes associated with the compulsory acquisition of land. Further information can be found in The Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947.
• Network wayleave right: A network wayleave right allows a licence holder to transfer steam or liquids in land via a heat network and includes powers to install apparatus, enter land and carry out works. This can be voluntarily agreed with the land owner or through a necessary wayleave application to Scottish Ministers where Ministers would consider allowing the use of the wayleave right if this was deemed necessary for the heat network development.
• Power to enter land to replace or repair apparatus: A licence holder may exercise a network land right, to repair or replace apparatus in connection with the supply of thermal energy by a heat network.
• Power to carry out survey of land: A licence holder may carry out a survey of land, to determine whether the land is suitable for building or operating a heat network.
• Power to carry out road works: If the licensee requests and has been granted an appropriate additional condition by the licensing regulator, the licence holder may carry out road works in connection with a heat network. Further information can be found in The New Roads and Street Works Act 1991.

Heat network developers have expressed and continue to express how essential these powers will be in ensuring the growth of the heat network sector and the importance of being comparable to gas and electricity licence holders.

Many developers have highlighted an issue causing a delay to heat network development. This delay is experienced when a developer is seeking permission to access the land, prior to any development and construction of the heat network. For example, a heat network developer may have to contact various land and asset owners to gain access to land whilst surveying and planning the development of the network, if pipes pass existing features such as bridges, rail lines, water, roads and disused coal mines. Arranging access on a case-by-case basis can create uncertainty during projects and may require plans to be changed. We understand these powers such as the network wayleave right will be welcomed by developers to assist them with the appropriate rights and access to the land and help avoid unnecessary delays.

We are proposing licences will only grant the rights and powers that are required by the applicant, for example not all licensees will require the powers of road works.  Further information can be found in the ’Conditions, Limitations and Modifications’ section later in this document.

We are also keen to understand the views of others in providing licence holders with the rights and powers listed in part 6 of the 2021 Act.