The Electricity and Gas (Energy Company Obligation) Order 2018

The score for district heating connections

27.—(1) This article applies for the purpose of calculating the score of a qualifying action which—

(a) is a district heating connection; and

(b) is not a demonstration action or a surplus action.

(2) Where this article applies, the score is calculated by determining the cost savings for the qualifying action in accordance with the following formula—

(3) In paragraph (2)—

“K” is the cost savings for the qualifying action determined in accordance with—

(a)

the Standard Assessment Procedure;

(b)

the Reduced Data Standard Assessment Procedure; or

(c)

following an application under paragraph (4) in respect of the district heating connection, an alternative methodology approved by the Administrator under paragraph (6);

“L” is—

(a)

1.25, in the case of a district heating connection which is—

(i)

a qualifying action by virtue of meeting the condition in article 17; and

(ii)

installed at domestic premises described as relevant F or G owner-occupied premises in Schedule 4;

(b)

1, in any other case.

(4) For the purposes of determining the cost savings achieved by a district heating connection (“the proposed connection”), a participant may apply to the Administrator in writing for approval of a methodology other than the Standard Assessment Procedure or the Reduced Data Standard Assessment Procedure (“an alternative methodology”).

(5) An application under paragraph (4) must be made—

(a) in the case of a district heating connection installed before the commencement date, before the measure is notified to the Administrator under article 24;

(b) in any other case, before the proposed connection is installed.

(6) The Administrator may approve an alternative methodology if—

(a) it is satisfied that—

(i) neither the Standard Assessment Procedure nor the Reduced Data Standard Assessment Procedure contain an appropriate methodology for determining the cost savings achieved by the proposed connection; and

(ii) the alternative methodology is an appropriate methodology for determining the cost savings achieved by the proposed connection; or

(b) the alternative methodology is published by, or on behalf of, the Secretary of State as a replacement for the Standard Assessment Procedure or the Reduced Data Standard Assessment Procedure.