1.—(1) The title of these Regulations is the Non-Domestic Rating (Heat Networks Relief) (Wales) Regulations 2024.
(2) These Regulations come into force on 1 April 2024.
(3) In these Regulations, “the Act” means the Local Government Finance Act 1988.
2. For the purposes of paragraph 6 of Schedule 4ZA to the Act, and for the purposes of regulation 3 of these Regulations, “heat network” means a facility which supplies thermal energy from a central source for the purposes of—
(a)space heating,
(b)space cooling, or
(c)heating domestic water.
3.—(1) The conditions to be satisfied for the purposes of paragraph 6(1)(b) of Schedule 4ZA to the Act are that, for the period of 12 months beginning with the chargeable day concerned, it appears to the billing authority in whose area the heat network is situated that the thermal energy supplied by the heat network will be generated from a low-carbon source.
(2) The low-carbon source may be located on the hereditament concerned or on a different hereditament.
(3) In this regulation—
“billing authority” (“awdurdod bilio”) has the meaning given by section 144(2) of the Act;
“chargeable day” (“diwrnod y codir swm ynglŷn ag ef”) has the meaning given by section 43(3) of the Act;
“cogenerated heat” (“gwres a gydgynhyrchir”) is thermal energy which is produced in the same process and at the same time as electrical or mechanical energy;
“low-carbon source” (“ffynhonnell garbon isel”) is a source which generates thermal energy, of which at least—
75% is cogenerated heat,
50% is renewable heat,
50% is waste heat, or
75% is a combination of renewable, waste or cogenerated heat;
“renewable heat” (“gwres adnewyddadwy”) is thermal energy generated by excepted renewables plant and machinery, as defined in paragraph (e) in Class 1 of the Schedule to the Valuation for Rating (Plant and Machinery) (Wales) Regulations 2000(1);
“waste heat” (“gwres gwastraff”) is thermal energy unavoidably generated as a by-product of another process and which would have no use other than for the purposes of a heat network.
Rebecca Evans
Minister for Finance and Local Government, one of the Welsh Ministers
15 January 2024