Heat Networks (Scotland) Act 2021

Introductory

1 Meaning of “heat network”

(1) In this Act, a “heat network” means—

(a) a district heat network, or

(b) a communal heating system.

(2) A district heat network is a network by which thermal energy is distributed from one or more sources of production to more than one building.

(3) A communal heating system is a system by which thermal energy is distributed from one or more sources of production to one building comprising more than one building unit.

(4) For the purposes of subsection (2) or (3), where the main purpose of a source of production is to provide thermal energy to a district heat network or (as the case may be) a communal heating system, the source of production forms part of the district heat network or (as the case may be) the communal heating system.

(5) In this Act, “thermal energy” means heating, cooling or hot water.

(6) In subsection (3), “building unit” means part of a building that is designed or altered to be used separately.

(7) The Scottish Ministers may by regulations—

(a) modify the meaning in this section of “heat network”, “district heat network”, “communal heating system” or “thermal energy”,

(b) further define the meaning of any of those terms.

2 Requirement for heat networks licence

(1) A person must not supply thermal energy by means of a heat network unless the person holds a heat networks licence.

(2) A person who contravenes subsection (1) commits an offence.

(3) It is a defence for a person charged with an offence under subsection (2) to show that the person had a reasonable excuse for contravening subsection (1).

(4) A person who commits an offence under subsection (2) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum,

(b) on conviction on indictment, to a fine.

(5) In this Act, “heat networks licence” means a heat networks licence issued under section 5(5).

3 Exemptions from requirement for heat networks licence

(1) The Scottish Ministers may by regulations provide that the requirement imposed by section 2(1) does not apply—

(a) in circumstances specified in the regulations,

(b) in relation to heat networks of a description specified in the regulations.

(2) The Scottish Ministers may direct that the requirement imposed by section 2(1) does not apply—

(a) to—

(i) a person specified by name in the direction,

(ii) persons of a description specified in the direction,

(b) in relation to heat networks of a description specified in the direction.

(3) Where the Scottish Ministers issue a direction under subsection (2), they must—

(a) do so in writing, and

(b) publish the direction in such manner as they consider appropriate.

(4) The Scottish Ministers may grant an exemption by regulations under subsection (1) or by a direction under subsection (2)—

(a) either—

(i) indefinitely, or

(ii) for a period specified in the regulations or the direction,

(b) either—

(i) unconditionally, or

(ii) subject to conditions specified in the regulations or the direction.

(5) The Scottish Ministers may revise or revoke a direction under subsection (2).

(6) Subsection (3) applies to the revision or revocation of a direction under subsection (2) as it applies to such a direction.

(7) Regulations under subsection (1), or a direction under subsection (2), may make different provision for different areas.

4 Meaning of “licensing authority”

In this Act, the “licensing authority” means—

(a) the Scottish Ministers, or

(b) such other person as the Scottish Ministers by regulations designate as the licensing authority for the purposes of this Act.