Heat Networks (Scotland) Act 2021

• (1) In this Part, a “network wayleave right” is a right for a licence holder to convey steam or liquids in land for a purpose connected with the supply of thermal energy by means of a heat network by the licence holder.

• (2) A network wayleave right in respect of land includes a power—

• (a) to install and keep installed heat network apparatus in the land,

• (b) to enter upon the land to install, inspect, maintain, adjust, alter, repair, replace, upgrade, operate or remove the heat network apparatus, and

• (c) to carry out any works in respect of the land that are reasonably necessary or incidental to the exercise of the network wayleave right.

• (3) A network wayleave right in respect of land may be conferred on a licence holder—

• (a) by the owner of the land, either—

• (i) by agreement with the licence holder, or

• (ii) unilaterally,

• (b) by a necessary wayleave, or

• (c) by positive prescription (see subsection (8)).

• (4) A wayleave document may include a development condition.

• (5) A “development condition” is a condition in a wayleave document restricting or regulating the development or use of the land to which the wayleave document relates by a relevant person as may be required to prevent interference with the exercise of the network wayleave right conferred by the wayleave document.

• (6) A development condition may in particular include a condition—

• (a) requiring such operations or activities as may be specified in the wayleave document to be carried out on, under or over the land,

• (b) requiring the land to be used in such way as may be so specified.

• (7) In subsection (5), a “relevant person” means—

• (a) the owner or tenant of the land,

• (b) any other person (other than the licence holder) who has a right to use the land.

• (8) Subsection (2) of section 3 of the Prescription and Limitation (Scotland) Act 1973 (positive servitudes and public rights of way) applies to a network wayleave right in respect of land as it applies to a positive servitude over land but as if—

• (a) in that subsection—

• (i) a reference to a positive servitude were a reference to a network wayleave right, and

• (ii) a reference to possession of a servitude were a reference to possession by a licence holder of a network wayleave right, and

• (b) subsection (4) of that section does not apply to the application of subsection (2) of that section by this subsection.

• (9) A network wayleave right constitutes a real right.

• (10) The installation of heat network apparatus in land by a licence holder in the exercise of a network wayleave right does not confer ownership of the heat network apparatus on the owner of the land.

• (11) In this Part—

• “heat network apparatus” means apparatus designed or adapted for use in connection with a heat network and includes any structure for housing, or for providing access to, such apparatus,

• “land” does not include a road within the meaning of section 107 of the New Roads and Street Works Act 1991,

• “necessary wayleave” means a necessary wayleave granted by the Scottish Ministers under section 70(1),

• “owner”, in relation to land, means a person who has a right to the land whether or not that person has completed title; but if, in relation to the land (or, if the land is held pro indiviso, in relation to any pro indiviso share in it) more than one person falls within that description of owner, then “owner” means such person who has most recently acquired such right,

• “wayleave document” means a written document conferring a network wayleave right on a licence holder under subsection (3)(a).

• (12) In this Part, a reference to heat network apparatus in land includes a reference to heat network apparatus under, over, across, along or on the land.

Acquisition of necessary wayleave

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• (1) The Scottish Ministers may, on an application by a licence holder, grant a necessary wayleave to a licence holder conferring a network wayleave right on the licence holder in respect of land if they consider that it is necessary or expedient for the licence holder to exercise the right for a purpose connected with the supply of thermal energy by means of a heat network by the licence holder.

• (2) A necessary wayleave—

• (a) has effect for the period specified in the necessary wayleave,

• (b) is subject to such terms and conditions as the Scottish Ministers consider appropriate.

• (3) A necessary wayleave may in particular include a development condition.

• (4) “Development condition” is to be construed in accordance with section 69(5) to (7) except that the references in subsections (5) and (6) of that section to a wayleave document are to be read as if they were references to a necessary wayleave.

• (5) A licence holder may apply to the Scottish Ministers for a necessary wayleave in respect of land under this section only if—

• (a) either—

• (i) the licence holder has given notice to the owner of the land setting out the licence holder's request to acquire a network wayleave right under section 69(3)(a), or

• (ii) where the licence holder cannot ascertain the name or address of the owner of the land after reasonable enquiry, the licence holder has given notice in such form and manner as may be specified by the Scottish Ministers by regulations, and

• (b) one of the conditions mentioned in subsection (6) applies.

• (6) The conditions are that the owner of the land—

• (a) has given the licence holder notice in writing that the owner will not enter into or grant a wayleave document,

• (b) has agreed to enter into or grant a wayleave document but (either or both)—

• (i) subject to terms and conditions to which the licence holder objects,

• (ii) a person with an interest in the land (other than the owner) will not enter into, or consent to, the wayleave document, or

• (c) has not agreed to enter into or grant a wayleave document before the end of the period specified by the licence holder in the notice given under subsection (5)(a)(i) or (ii).

• (7) A notice under subsection (5)(a)(i) must—

• (a) state the reasons why the conferral of a network wayleave right is sought, and

• (b) specify the period (which is to be not less than 28 days from the date on which the notice is given) within which the owner of the land must agree to enter into or grant a wayleave document.

• (8) Before granting a necessary wayleave in respect of land, the Scottish Ministers must give the following persons the opportunity to make representations—

• (a) the owner of the land, and

• (b) where sub-paragraph (ii) of subsection (6)(b) applies, the person referred to in that sub-paragraph.

• (9) Subsection (1) does not apply in relation to land held or used by or on behalf of a Minister of the Crown or a department of the Government of the United Kingdom.

Assignation of network wayleave rights

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• (1) A network wayleave right may be assigned by a licence holder to another licence holder.

• (2) But a network wayleave right in respect of land that is conferred by a necessary wayleave may be assigned to another licence holder only with the consent of the Scottish Ministers.

• (3) A wayleave document is void to the extent that—

• (a) it prevents or limits the assignation of the network wayleave right to another licence holder,

• (b) it makes the assignation of the network wayleave right to another licence holder subject to a condition (including a condition requiring the payment of money).

Variation of network wayleave right

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• (1) A network wayleave right in respect of land (however conferred) may only be varied—

• (a) by agreement between the owner of the land and the licence holder entitled to the benefit of the network wayleave right (a “variation agreement”), or

• (b) in accordance with this section.

• (2) A licence holder may apply to the Scottish Ministers to vary a network wayleave right in respect of land under this section only if—

• (a) either—

• (i) the licence holder has given notice to the owner of the land setting out the licence holder's request to vary the network wayleave right, or

• (ii) where the licence holder cannot ascertain the name or address of the owner of the land after reasonable enquiry, the licence holder has given notice in such form and manner as may be specified by the Scottish Ministers by regulations, and

• (b) one of the conditions mentioned in subsection (3) applies.

• (3) The conditions are that the owner of the land—

• (a) has given the licence holder notice in writing that the owner will not enter into a variation agreement,

• (b) has agreed to enter into a variation agreement but (either or both)—

• (i) subject to terms and conditions to which the licence holder objects,

• (ii) a person with an interest in the land (other than the owner) will not enter into, or consent to, the variation agreement,

• (c) has not agreed to enter into a variation agreement before the end of the period specified by the licence holder in the notice given under subsection (2)(a)(i) or (ii).

• (4) An owner of land may apply to the Scottish Ministers to vary a network wayleave right in respect of land under this section only if—

• (a) the owner has given notice to the licence holder setting out the owner's request to vary the network wayleave right, and

• (b) one of the conditions mentioned in subsection (5) applies.

• (5) The conditions are that the licence holder—

• (a) has given the owner of the land notice in writing that the licence holder will not enter into a variation agreement,

• (b) has agreed to enter into a variation agreement but subject to terms and conditions to which the owner of the land objects,

• (c) has not agreed to enter into a variation agreement before the end of the period specified by the owner of the land in the notice given under subsection (4)(a).

• (6) A notice under subsection (2)(a)(i) or (4)(a) must—

• (a) state the reasons why the variation agreement is proposed, and

• (b) specify the period (which is to be not less than 28 days from the date on which the notice is given) after which, if agreement is not reached, the person giving the notice may apply to the Scottish Ministers for the grant of a variation.

• (7) The Scottish Ministers may—

• (a) following an application by a licence holder entitled to the benefit of a network wayleave right, grant a variation of the network wayleave right if they consider that it is necessary or expedient for the licence holder to exercise the right as varied for a purpose connected with the supply of thermal energy by means of a heat network by the licence holder,

• (b) following an application by the owner of land in respect of which a network wayleave right is exercisable, grant a variation of the network wayleave right if they consider it is appropriate to do so.

• (8) In considering for the purposes of subsection (7)(b) whether it is appropriate to grant a variation of a network wayleave right, the Scottish Ministers may in particular consider whether—

• (a) the exercise of the network wayleave right appears to them to materially prejudice the owner's enjoyment or use of the land,

• (b) any variation would not substantially increase the cost or diminish the quality of the supply provided by the licence holder's heat network to persons who rely (or may in the future rely) on the supply of thermal energy by means of the heat network concerned, and

• (c) any variation would not result in the licence holder incurring substantial additional expenditure.

• (9) Before granting a variation of a network wayleave right, the Scottish Ministers must—

• (a) where an application is made by the licence holder, give the following persons the opportunity to make representations—

• (i) the owner of the land,

• (ii) where sub-paragraph (ii) of subsection (3)(b) applies, the person referred to in that sub-paragraph,

• (b) where an application is made by the owner of the land, give the licence holder the opportunity to make representations.

Compensation on variation of a network wayleave right

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• (1) Where a network wayleave right is varied under section 72(7)(a) so as to place or increase a burden on—

• (a) an occupier of the land, or

• (b) where the occupier is not also the owner of the land, the owner,

either or both of those persons may recover from the licence holder compensation in respect of the variation of the network wayleave right.

• (2) Any dispute about compensation under this section is to be referred to and determined by the Lands Tribunal for Scotland.

• (3) Sections 9 and 11 of the Land Compensation (Scotland) Act 1963 apply in relation to any determination under subsection (1) as if—

• (a) this section were referred to in section 9(1) of that Act, and

• (b) references in section 11 of that Act to the acquiring authority were references to the licence holder concerned.

• (4) The Scottish Ministers may by regulations make further provision about compensation payable under this section.

Discharge of network wayleave right

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• (1) A network wayleave right in respect of land (however conferred) may only be discharged by the licence holder entitled to the benefit of the network wayleave right, either—

• (a) by agreement with the owner of the land, or

• (b) unilaterally.

• (2) A licence holder must discharge a network wayleave right under subsection (1)(a) if (and to the extent that) the right relates to heat network apparatus that has ceased to be used for the purposes of a heat network.

Registration of network wayleave rights

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• (1) The Scottish Ministers may by regulations make provision for or about the registration of network wayleave rights.

• (2) Regulations under subsection (1) may in particular include provision about—

• (a) how a network wayleave right is to be registered,

• (b) the information (including information in the form of a document) that must be included as part of any entry in the register,

• (c) who is required to establish and maintain a register of network wayleave rights,

• (d) fees payable in connection with the registration of a network wayleave right,

• (e) the form and manner of any register of network wayleave rights,

• (f) how the register is to be made available for inspection by members of the public,

• (g) what payment (if any) the licence holder is entitled to charge for supplying documents relating to network wayleave rights to members of the public,

• (h) the consequences of failure to comply with the requirements of the registration.

• (3) Regulations under subsection (1) may modify any enactment (including this Act).

Requirement to remove apparatus when notified

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• (1) This section applies where—

• (a) a person (the “right holder”) has a right to remove (or require the removal of) any heat network apparatus installed in the land by a licence holder, and

• (b) the right holder seeks the removal of all or part of the heat network apparatus.

• (2) The right holder must give written notice to the licence holder who is operating (or who has most recently operated) the heat network of which the heat network apparatus forms part requiring the licence holder to remove such part of the heat network apparatus as may be specified in the notice.

• (3) The licence holder must comply with the notice given under subsection (2) by no later than the end of the period of 3 months beginning with the day on which the notice is given unless subsection (4) applies.

• (4) This subsection applies if, before the end of the period of 3 months mentioned in subsection (3), the licence holder—

• (a) applies to the Scottish Ministers for the grant of a necessary wayleave, or

• (b) by virtue of section 68(1), submits a compulsory purchase order in respect of the land to the Scottish Ministers for confirmation by them.

• (5) If subsection (4) applies and the Scottish Ministers—

• (a) refuse the application for the grant of a necessary wayleave, or (as the case may be)

• (b) decide not to confirm the compulsory purchase order,

the licence holder must comply with the notice given under subsection (2) by no later than the end of the period of 3 months beginning with the day on which the licence holder receives notice of the Scottish Ministers' decision.

Compensation in connection with network wayleave rights

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• (1) Where a necessary wayleave is granted to a licence holder under section 70(1)—

• (a) the occupier of the land, and

• (b) where the occupier is not also the owner of the land, the owner,

may recover from the licence holder compensation in respect of the grant.

• (2) Where the exercise of a network wayleave right by or on behalf of a licence holder in relation to land—

• (a) causes damage to the land or a thing situated on the land, the licence holder is liable to pay compensation to a person with an interest in the land or thing,

• (b) disturbs a person's enjoyment of the land or a thing situated on the land, the licence holder is liable to pay compensation to the person in respect of the disturbance.

• (3) Any dispute about compensation under this section is to be referred to and determined by the Lands Tribunal for Scotland.

• (4) Sections 9 and 11 of the Land Compensation (Scotland) Act 1963 apply in relation to any determination under subsection (3) as if—

• (a) this section were referred to in section 9(1) of that Act, and

• (b) references in section 11 of that Act to the acquiring authority were references to the licence holder concerned.

• (5) The Scottish Ministers may by regulations make further provision about compensation payable under this section.

Other powers over land

Power to carry out survey

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• (1) A licence holder may carry out a survey of land for the purpose of determining whether the land is suitable for a purpose connected with the construction or operation of a heat network.

• (2) Before carrying out a survey of land under subsection (1), the licence holder must give the occupier of the land at least 14 days' notice of the intention to carry out the survey.

• (3) If subsection (4) applies, a right to carry out a survey of any land under subsection (1) includes the right to search and bore the land for the purposes of ascertaining—

• (a) the nature of the subsoil of the land,

• (b) the presence of minerals or other matter in the land.

• (4) This subsection applies if notice given under subsection (2) includes notice of the intention to carry out the work mentioned in subsection (3).

• (5) A person carrying out a survey of land under subsection (1) has a right of entry to the land at all reasonable times to carry out the survey but must—

• (a) when seeking to enter the land in order to carry out the survey, provide evidence of the person's authority to so act on request by an occupier or the owner of the land,

• (b) carry out the survey in a manner that ensures as little disruption as possible is caused to any occupier or owner of the land,

• (c) endeavour—

• (i) to ensure that as little damage as possible is caused by the exercise of the person's powers under this section, and

• (ii) if any damage is caused, take reasonable steps to remedy the damage.

• (6) A person commits an offence if the person, without reasonable excuse, intentionally obstructs another person (a “relevant person”) in the exercise of the relevant person's power to enter upon and survey the land under this section.

• (7) A person who commits an offence under subsection (6) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Power to enter land to replace or repair apparatus

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• (1) A licence holder may exercise a network land right for a purpose connected with the supply of thermal energy by means of a heat network by the licence holder.

• (2) In this Part, a “network land right” is a power—

• (a) to install heat network apparatus in replacement for, or in addition to, existing heat network apparatus that is lawfully situated in land,

• (b) to inspect, maintain, adjust, alter, repair, replace, upgrade, operate, remove or add to any existing heat network apparatus that is situated in land,

• (c) to carry out any works to the land that are necessary for or incidental to the powers mentioned in paragraph (a) or (b).

• (3) The works mentioned in subsection (2)(c) include felling, lopping or cutting back the roots of any tree or shrub on, under or over the land that is in close proximity to heat network apparatus that is, is being or is to be installed by or on behalf of the licence holder, in order to prevent the tree or shrub—

• (a) from obstructing or interfering with the installation, maintenance or operation of the heat network apparatus, or

• (b) from constituting a danger to persons.

• (4) The licence holder must give the owner and any occupier of the land concerned at least 7 days' notice of the intention by or on behalf of the licence holder to enter onto the land for the purpose of exercising the network land rights specified in the notice.

• (5) Subsection (4) does not apply if the network land rights that the licence holder proposes to exercise are to be exercised in order to carry out emergency works.

• (6) Where the licence holder exercises a network land right to carry out emergency works, the licence holder must notify the owner and any occupier of the land of the works carried out as soon as possible after the carrying out of those works.

• (7) A person exercising a network land right in relation to any land has a right of entry to the land at all reasonable times to exercise the network land right but must—

• (a) when seeking to enter the land in order to exercise a network land right, provide evidence of the person's authority to so act on request by an owner or (as the case may be) an occupier of the land,

• (b) exercise the network land right in a manner that ensures as little disruption as possible is caused to the owner and any occupier of the land,

• (c) endeavour—

• (i) to ensure that as little damage as possible is caused by the exercise of the person's powers under this section, and

• (ii) if any damage is caused, take reasonable steps to remedy the damage.

• (8) A person commits an offence if that person, without reasonable excuse, intentionally obstructs another person (a “relevant person”) in the exercise of the relevant person's power to enter upon the land and exercise a network land right under this section.

• (9) A person who commits an offence under subsection (8) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

• (10) In this section, “emergency works” means works carried out by virtue of a network land right for the purpose of—

• (a) stopping anything already occurring, or

• (b) preventing anything imminent from occurring that is likely to cause—

• (i) danger to persons or property,

• (ii) the interruption of any supply provided by the licence holder,

and any other works that are reasonable (in all circumstances) to carry out with those works.

Restrictions on powers of licence holders

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• (1) This section applies where—

• (a) land is occupied by a statutory undertaker and the carrying out of a survey of the land under section 78(1) is likely to obstruct or interfere with the statutory undertaker's undertaking, or

• (b) land is occupied by a statutory undertaker and the exercise of a network land right in relation to the land under section 79(1) is likely to obstruct or interfere with the statutory undertaker's undertaking.

• (2) Where this section applies, a licence holder may exercise the power mentioned in section 78(1) or 79(1) only with the consent of the statutory undertaker concerned.

• (3) But consent is not required under subsection (2) if it is withheld unreasonably by the statutory undertaker.

• (4) It is for the Scottish Ministers to determine any question which arises as to whether consent has been withheld unreasonably for the purposes of subsection (3), and their decision is final.

• (5) In this section—

• “statutory undertaker” means—the holder of a licence under section 6(1) of the Electricity Act 1989,a gas transporter within the meaning of Part 1 of the Gas Act 1986,the Civil Aviation Authority,a holder of a licence under Chapter 1 of the Transport Act 2000,the operator of an electronic communications code network within the meaning of paragraph 1(1) of schedule 17 of the Communications Act 2003,any other person who is a statutory undertaker within the meaning of section 214(1) of the Town and Country Planning (Scotland) Act 1997,

• “undertaking”—means, in relation to a person mentioned in paragraphs (a) to (e) in the definition of “statutory undertaker”, the person's undertaking,means, in relation to Scottish Water, its core functions within the meaning of section 70(2) of the Water Industry (Scotland) Act 2002,otherwise has the meaning given in the Town and Country Planning (Scotland) Act 1997.

Compensation for damage or disturbance

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• (1) Where the exercise of a power under section 78(1) or 79(1) by or on behalf of a licence holder in relation to land—

• (a) causes damage to the land or a thing situated on the land, the licence holder is liable to pay compensation to a person with an interest in or over the land or the thing,

• (b) disturbs a person's enjoyment of the land or a thing situated on the land, the licence holder is liable to pay compensation to the person in respect of the disturbance.

• (2) Any dispute about compensation under this section is to be referred to and determined by the Lands Tribunal for Scotland.

• (3) Sections 9 and 11 of the Land Compensation (Scotland) Act 1963 apply in relation to any determination under subsection (2) as if—

• (a) this section were referred to in section 9(1) of that Act, and

• (b) references in section 11 of that Act to the acquiring authority were references to the licence holder concerned.

• (4) The Scottish Ministers may by regulations make further provision about compensation payable under this section.

Road works

Power to carry out road works

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• (1) A licence holder may, for a purpose connected with the supply of thermal energy by means of a heat network, carry out the works mentioned in subsection (2) if the heat networks licence held by the licence holder provides that the licence holder may carry out such works.

• (2) The works referred to in subsection (1) are—

• (a) installing heat network apparatus in a road,

• (b) inspecting, maintaining, adjusting, repairing, altering or renewing heat network apparatus installed in a road,

• (c) changing the position of heat network apparatus in a road,

• (d) removing heat network apparatus from a road,

• (e) works required for or incidental to works mentioned in any of paragraphs (a) to (d), including in particular—

• (i) opening or breaking up a road,

• (ii) opening or breaking up a sewer, drain or tunnel under a road,

• (iii) tunnelling or boring under a road, and

• (iv) removing or using all earth and materials in or under a road.

• (3) The power of a licence holder under subsection (1) to—

• (a) place on, over or along a road a structure for housing any other heat network apparatus, or

• (b) inspect, maintain, adjust, repair, alter or renew any such structure,

may be exercised only with the consent of the road works authority.

• (4) But consent is not required under subsection (3) if it is withheld unreasonably by the road works authority.

• (5) The power of a licence holder under subsection (1) to open or break up a road which is not a public road may be exercised only with the consent of the road works authority.

• (6) But consent is not required under subsection (5) if—

• (a) the opening or breaking up of the road constitutes emergency works, or

• (b) consent is withheld unreasonably by the road works authority.

• (7) It is for the Scottish Ministers to determine any question which arises as to whether consent has been withheld unreasonably for the purposes of subsection (4) or (6)(b), and their decision is final.

• (8) In this section—

• “emergency works” has the same meaning as in Part 4 of the New Roads and Street Works Act 1991 (see section 111 of that Act),

• “public road” means a road which a roads authority has a duty to maintain,

• “road” has the same meaning as in Part 4 of the New Roads and Street Works Act 1991 (see section 107 of that Act),

• “road works authority” has the same meaning as Part 4 of that Act (see section 108 of that Act),

• “roads authority” has the same meaning as in section 151 of the Roads (Scotland) Act 1984.

• (9) In this section, a reference to heat network apparatus in a road includes a reference to heat network apparatus under, over, across, along or on the road.

Interpretation

Interpretation of Part 6

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In this Part—

• “heat network apparatus” has the meaning given in section 69(11),

• “licence holder” has the meaning given in section 68(7),

• “necessary wayleave” has the meaning given in section 69(11),

• “network land right” has the meaning given in section 79(2),

• “network wayleave right” has the meaning given in section 69(1),

• “wayleave document” has the meaning given in section 69(11).

PART 7 — Key heat network assets

Identifying key heat network assets

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• (1) This section applies to—

• (a) a heat network consent application relating to—

• (i) the construction and operation of a heat network, or

• (ii) the operation of a heat network,

• (b) a heat network consent modification application in respect of a heat network consent relating to—

• (i) the construction and operation of a heat network, or

• (ii) the operation of a heat network.

• (2) The heat network consent application or (as the case may be) the heat network consent modification application must include—

• (a) required information about each key asset of the heat network to which the application relates, and

• (b) required information about each person with an interest in such an asset.

• (3) In subsection (2), “required” means required by a determination under section 33(1).

• (4) In this Part, “key asset”, in relation to a heat network, means property of a type mentioned in subsection (5) which—

• (a) forms part of the heat network, and

• (b) is necessary to the operation of the heat network.

• (5) The types of property are—

• (a) land,

• (b) buildings,

• (c) apparatus,

• (d) such other type of property as may be specified by the Scottish Ministers by regulations.

• (6) For the purposes of subsection (4)(b), it is for the Scottish Ministers to determine any question which arises as to whether property forming part of a heat network is necessary to the operation of the heat network.

• (7) Regulations under subsection (5)(d) may make different provision for different areas.

Preparing schedule of key heat network assets

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• (1) Following receipt of a heat network consent application of the type mentioned in section 84(1)(a) in relation to a heat network, the Scottish Ministers must prepare a schedule that includes details of each key asset of the heat network.

• (2) Subsection (3) applies where—

• (a) property relating to a heat network appears to the Scottish Ministers to be a key asset of the heat network, and

• (b) the Scottish Ministers propose to include details of the property in the schedule of key network assets for the heat network.

• (3) Before including details of the property in the schedule of key network assets, the Scottish Ministers must give notice of the proposal to—

• (a) each person with an interest in the property, and

• (b) such other persons as the Scottish Ministers consider appropriate.

• (4) The notice must—

• (a) give reasons why the property appears to the Scottish Ministers to be a key asset of the heat network,

• (b) explain the consequence of the property becoming a listed asset, and

• (c) specify the period (which is to be not less than 28 days from the date on which the notice is given) within which the recipient of the notice may make representations about the proposal.

• (5) Where the Scottish Ministers include details of a key asset of a heat network in the schedule of key network assets for the heat network, the Scottish Ministers must give notice of that fact to each person with an interest in the key asset.

• (6) The Scottish Ministers must give notice under subsection (3) or (5) in such form and manner as they may specify by regulations.

Notifying Scottish Ministers of changes in key network assets

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• (1) The operator of a heat network must notify the Scottish Ministers if—

• (a) property that is not a listed asset of the heat network becomes a key asset of the heat network, or

• (b) property that is a listed asset of the heat network has ceased to be a key asset of the heat network.

• (2) Notification under subsection (1) must include such information about—

• (a) property relating to the heat network to which the notification relates, and

• (b) each person with an interest in such property,

as the Scottish Ministers may determine.

• (3) The Scottish Ministers must arrange for any determination under subsection (2) to be published in such manner as they consider appropriate.

Modifying schedule of key heat network assets

87

• (1) If the Scottish Ministers consider that property that is a listed asset of a heat network has ceased to be a key asset of the heat network, the Scottish Ministers must remove the details of the listed asset from the schedule of key heat network assets for the heat network.

• (2) If the Scottish Ministers consider that property that is not a listed asset of a heat network has become a key asset of the heat network, the Scottish Ministers must include details of the property in the schedule of key heat network assets for the heat network.

• (3) Before including details of property in the schedule of heat network assets pursuant to subsection (2), the Scottish Ministers must give notice of the proposal to—

• (a) each person with an interest in the property, and

• (b) such other persons as the Scottish Ministers consider appropriate.

• (4) The notice must—

• (a) give reasons why the property appears to the Scottish Ministers to be a key asset of the heat network,

• (b) explain the consequence of the property becoming a listed asset, and

• (c) specify the period (which is to be not less than 28 days from the date on which the notice is given) within which the recipient of the notice may make representations about the proposal.

• (5) Where the Scottish Ministers include details of a key asset of a heat network in the schedule of key network assets for the heat network pursuant to subsection (2), the Scottish Ministers must give notice of that fact to each person with an interest in the key asset.

• (6) The Scottish Ministers must give notice under subsection (3) or (5) in such form and manner as they may specify by regulations.

• (7) It does not matter for the purposes of subsection (1) or (2) whether the Scottish Ministers form the view mentioned in either of those subsections—

• (a) following receipt of a heat network consent modification application of the type mentioned in section 84(1)(b),

• (b) following notification under section 86(1), or

• (c) on their own initiative.

Preparation and maintenance of schedule of key network assets: further provision

88

The Scottish Ministers may by regulations make further provision about the procedure to be followed in connection with the preparation and maintenance of schedules of key heat network assets.

Transfer schemes

89

• (1) Where an operator (the “former operator”) ceases (or is to cease) operating a heat network, the Scottish Ministers may make a transfer scheme.

• (2) A “transfer scheme” is a scheme making provision for—

• (a) the transfer to one or more relevant persons of the former operator's rights relating to the use of listed assets of the heat network,

• (b) the conferral on one or more relevant persons of other rights relating to the use of listed assets of the heat network.

• (3) A transfer scheme may make incidental, supplementary, consequential or transitional provision in connection with the transfer or conferral of rights by the transfer scheme as the Scottish Ministers consider appropriate.

• (4) The Scottish Ministers may by regulations make further provision about transfer schemes.

• (5) Regulations under subsection (4) may in particular make provision about—

• (a) the rights that may be transferred or conferred by a transfer scheme,

• (b) the procedure applying in connection with the making of a transfer scheme,

• (c) the effect of transfers or conferrals of rights by a transfer scheme,

• (d) requirements that may be imposed on the former operator or a transferee in connection with the transfer or conferral of rights by a transfer scheme, including obligations to enter into such agreements with another person, or to execute such documents in favour of another person, as may be specified or described in a transfer scheme,

• (e) the circumstances in which a right transferred or conferred by a transfer scheme is or may be extinguished,

• (f) the modification of a transfer scheme.

• (6) In this section—

• “relevant person” means—the Scottish Ministers,the appropriate local authority,a person (other than the former operator) to whom a heat network consent relating to the operation of the heat network is granted,

• “transferee” means a relevant person to whom rights are transferred, or on whom rights are conferred, by a transfer scheme.

• (7) In subsection (6), in the definition of “relevant person”, the “appropriate local authority” means—

• (a) the local authority for the area in which the listed assets are situated, or

• (b) where the listed assets are situated in the area of more than one local authority—

• (i) the authority in whose area the greater or greatest part of the listed assets is situated, or

• (ii) if neither or none of those authorities falls within sub-paragraph (i), such of those authorities as is selected by the Scottish Ministers for the purposes of being a transferee.

Compensation in connection with transfer schemes

90

• (1) The Scottish Ministers may by regulations make provision for or about the payment of compensation in connection with a transfer scheme under section 89(1).

• (2) Regulations under subsection (1) may in particular make provision about—

• (a) the circumstances in which compensation is payable,

• (b) the persons to whom compensation is payable,

• (c) the persons liable to pay compensation,

• (d) what compensation is payable in respect of,

• (e) how the amount of compensation is to be calculated,

• (f) how a claim for compensation must be made in order to be valid (including the form and content of a claim, and the period within which it must be made),

• (g) the resolution of disputes relating to compensation.

Interpretation of Part 7

91

In this Part—

• “listed asset”, in relation to a heat network, means property the details of which are included in the schedule of key heat network assets for the heat network,

• “operator”, in relation to a heat network, means a person holding a heat network consent in relation to the operation of the heat network,

• “schedule of key heat network assets”, in relation to a heat network, means a schedule prepared under section 85(1) for the heat network.

PART 8 — Heat networks targets and delivery plans

Heat network supply targets

92

• (1) The Scottish Ministers must ensure that the combined supply of thermal energy by heat networks in Scotland reaches—

• (a) 2.6 terawatt hours of output by 2027,

• (b) 6 terawatt hours of output by 2030,

• (c) 7 terawatt hours of output by 2035.

• (2) The Scottish Ministers may by regulations modify subsection (1) so as to—

• (a) specify an additional target relating to the combined supply of thermal energy by heat networks in Scotland,

• (b) modify any target for the time being specified there.

• (3) The Scottish Ministers may by regulations make provision about targets specified or modified under subsection (2).

• (4) Regulations under subsection (3) may in particular make provision about—

• (a) the matters to be taken into account by the Scottish Ministers in specifying or modifying targets,

• (b) the criteria to be applied in specifying or modifying targets,

• (c) carrying out reviews of targets.

• (5) The Scottish Ministers may by regulations modify subsection (1) so as to specify an additional target relating to the output from the combined supply of thermal energy by heat networks in Scotland to be reached by 2035.

• (6) The Scottish Ministers must, by no later than 1 October 2023, lay a draft of a Scottish statutory instrument containing regulations under subsection (5) before the Scottish Parliament.

Heat networks delivery plan

93

• (1) The Scottish Ministers must prepare a heat networks delivery plan, setting out how the provisions of this Act, and any other supporting policies, will contribute to increasing the use of heat networks in Scotland.

• (2) A heat networks delivery plan must set out—

• (a) the approach the Scottish Ministers intend to take to increase the use of heat networks in Scotland,

• (b) how the Scottish Ministers propose to meet the targets specified in section 92(1),

• (c) how the aggregate heat output of all heat networks in Scotland will be measured,

• (d) how the deployment of heat networks in Scotland will contribute to meeting emissions reduction targets set in the Climate Change (Scotland) Act 2009.

• (3) In preparing the heat networks delivery plan the Scottish Ministers must consult such persons as they consider appropriate.

• (4) The Scottish Ministers must—

• (a) publish the heat networks delivery plan, and

• (b) lay a copy of it before the Scottish Parliament,

no later than 1 April 2022.

• (5) The Scottish Ministers are to keep the heat networks delivery plan under review and may revise it at any time.

• (6) At the end of each of the reporting periods the Scottish Ministers must—

• (a) review the heat networks delivery plan,

• (b) lay a report before the Scottish Parliament on that review.

• (7) A report under subsection (6) must consider—

• (a) how this Act and associated policies have contributed to an increase in the use of heat networks in Scotland in the reporting period,

• (b) what progress has been made in the aggregate heat output of all heat networks in Scotland in the reporting period and, in particular, in meeting the targets specified in section 92(1),

• (c) how the deployment of heat networks in Scotland has contributed to meeting emissions reduction targets set in the Climate Change (Scotland) Act 2009 during the reporting period.

• (8) The reporting periods are—

• (a) the period of 2 years beginning with the day on which the first heat networks delivery plan is published under subsection (4),

• (b) each subsequent period of 2 years.

• (9) The Scottish Ministers must have regard to the just transition principles (within the meaning of section 35C of the Climate Change (Scotland) Act 2009)—

• (a) in preparing the heat networks delivery plan,

• (b) in reviewing, and making any revision of, the plan under subsection (5),

• (c) in reviewing the plan under subsection (6), and

• (d) in preparing a report under subsection (6) on each such review.

PART 9 — Miscellaneous and general

Fees

Fees for applications etc.

94

• (1) The Scottish Ministers may by regulations make provision for the payment of a charge or fee, in respect of the matters mentioned in subsection (2), to the following persons—

• (a) the licensing authority,

• (b) the Scottish Ministers,

• (c) a local authority,

• (d) a person designated by the Scottish Ministers under section 37(b),

• (e) the permit authority.

• (2) The matters are—

• (a) in relation to the licensing authority—

• (i) the performance by the licensing authority of any of the licensing authority's functions under this Act,

• (ii) anything done by the licensing authority that is calculated to facilitate, or is conducive or incidental to, the performance of any such function,

• (b) in relation to the Scottish Ministers—

• (i) the performance by the Scottish Ministers of any of the their functions under Part 2,

• (ii) anything done by them that is calculated to facilitate, or is conducive or incidental to, the performance of any such function,

• (c) in relation to a local authority—

• (i) the performance by a local authority of any if its functions under Part 2 as the appropriate consent authority,

• (ii) anything done by the local authority that is calculated to facilitate, or is conducive or incidental to, the performance of any such function,

• (d) in relation to a person designated by the Scottish Ministers under section 37(b)—

• (i) the performance by that person of any of the person's functions as the enforcement authority for the purposes of Part 2,

• (ii) anything done by that person that is calculated to facilitate, or is conducive or incidental to, the performance of any such function,

• (e) in relation to the permit authority—

• (i) the performance by the permit authority of any of the permit authority's functions under Part 4,

• (ii) anything done by the permit authority that is calculated to facilitate, or is conducive or incidental to, the performance of any such function.

• (3) Regulations under subsection (1) may in particular—

• (a) specify the person by whom the charge or fee is to be paid,

• (b) specify charges or fees or provide for charges or fees to be determined by reference to such factors as may be specified in or determined under the regulations,

• (c) provide for the remission or repayment of fees in such circumstances as may be specified in or determined under the regulations.

• (4) Where regulations under subsection (1) provide for a fee to be charged in respect of any application under this Act made to a person mentioned in paragraph (a), (b), (c) or (e) of that subsection, the person need not consider the application unless and until the fee is paid.

Local authority costs

Strategy: local authority costs

95

• (1) The Scottish Ministers must prepare a strategy setting out the costs to local authorities in relation to their duties under this Act.

• (2) The strategy prepared under subsection (1)—

• (a) must set out the costs associated with the duties of local authorities under this Act,

• (b) must set out the approach the Scottish Ministers intend to take to fund local authorities to fulfil their duties under this Act,

• (c) must set out the approach the Scottish Ministers intend to take to ensure local authorities have the capacity to fulfil their duties under this Act,

• (d) may include such other information as the Scottish Ministers consider appropriate.

General

Individual culpability where organisation commits offence

96

• (1) This section applies where—

• (a) an offence under this Act is committed by a relevant organisation, and

• (b) the commission of the offence—

• (i) involves consent or connivance on the part of a responsible individual, or

• (ii) is attributable to neglect on the part of a responsible individual.

• (2) The responsible individual (as well as the relevant organisation) commits the offence.

• (3) For the purposes of this section—

• (a) “relevant organisation” means an organisation listed in the first column of the table in subsection (4),

• (b) “responsible individual” means, in relation to a relevant organisation—

• (i) an individual falling within the corresponding entry in the second column of the table in subsection (4), or

• (ii) an individual purporting to act in the capacity of an individual falling within the corresponding entry.

• (4) The table is as follows—

Organisation	Individual
company as mentioned in section 1 of the Companies Act 2006	director, manager, secretary or other similar officer
	member, where the company's affairs are managed by its members
limited liability partnership	member
other partnership	partner
any other body or association	individual who is concerned in the management or control of its affairs

Crown application: general

97

• (1) Nothing in this Act makes the Crown criminally liable.

• (2) But the Court of Session may, on an application by the Lord Advocate, declare unlawful any act or omission for which the Crown would be criminally liable were it not for subsection (1).

• (3) Subsection (1) does not affect the criminal liability of persons in the service of the Crown.

• (4) Section 98 makes provision about access to Crown land.

Crown application: powers of entry

98

• (1) A power of entry conferred by section 43(2), 78(5) or 79(7) is exercisable in relation to Crown land specified in column 1 of the following table only with the consent of the person specified in the corresponding entry in column 2 of the table (the “appropriate authority”).

Crown land	Appropriate authority
Land an interest in which belongs to Her Majesty in right of the Crown and which forms part of the Crown Estate (that is, the property, rights and interests under the management of the Crown Estate Commissioners)	The Crown Estate Commissioners
Land an interest in which belongs to Her Majesty in right of the Crown and which forms part of the Scottish Crown Estate	The person managing the land
Land an interest in which belongs to Her Majesty in right of the Crown other than land forming part of the Crown Estate or the Scottish Crown Estate	The office-holder in the Scottish Administration or the Government department managing the land
Land an interest in which belongs to Her Majesty in right of Her private estates	The person appointed by Her Majesty in writing under the Royal Sign Manual or, if no such appointment is made, the Scottish Ministers
Land an interest in which belongs to an office-holder in the Scottish Administration	The office-holder in the Scottish Administration
Land an interest in which belongs to a Government department	The Government department
Land an interest in which is held in trust for Her Majesty by an office-holder in the Scottish Administration for the purposes of the Scottish Administration	The office-holder in the Scottish Administration
Land an interest in which is held in trust for Her Majesty for the purposes of a Government department	The Government department

• (2) In subsection (1)—

• (a) the reference to Her Majesty's private estates is to be construed in accordance with section 1 of the Crown Private Estates Act 1862,

• (b) “Government department” means a department of the Government of the United Kingdom,

• (c) “Scottish Crown Estate” means the property, rights and interests to which section 90B(5) of the Scotland Act 1998 applies.

• (3) It is for the Scottish Ministers to determine any question that arises as to who in accordance with subsection (1) is the appropriate authority in relation to any land, and their decision is final.

Regulations

99

• (1) Any power of the Scottish Ministers to make regulations under this Act includes power to make—

• (a) incidental, supplementary, consequential, transitional, transitory or saving provision,

• (b) different provision for different purposes.

• (2) Regulations under any of the following sections are subject to the affirmative procedure: 1(7), 4(b), 32(1), 37(b), 55(b), 57(1), 61(1), 73(4), 77(5), 81(4), 89(4), 90(1) and 92(2) or (5).

• (3) Regulations under the following sections which add to, replace or omit any part of the text of an Act are subject to the affirmative procedure: 12(1), 20(1), 28(3), 29(6), 31(4), 36(1), 41(1), 60(1), 75(1) and 100(1).

• (4) All other regulations under this Act are subject to the negative procedure.

• (5) Subsection (1)(a) does not apply to regulations under section 100(1).

• (6) This section does not apply to regulations under section 102(2).

Ancillary provision

100

• (1) The Scottish Ministers may by regulations make any incidental, supplementary, consequential, transitional, transitory or saving provision they consider appropriate for the purposes of, in connection with or for giving full effect to this Act or any provision made under it.

• (2) Regulations under subsection (1) may modify any enactment (including this Act).

• (3) Regulations under subsection (1)—

• (a) which add to, replace or omit the text of an Act are subject to the affirmative procedure,

• (b) otherwise, are subject to the negative procedure.

General interpretation

101

• (1) In this Act—

• “appropriate consent authority” is to be construed in accordance with section 21,

• “enforcement authority” has the meaning given in section 37,

• “the fuel poverty targets” means the targets set out in sections 1 and 2 of the Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019,

• “heat network” has the meaning given in section 1(1),

• “heat network consent” has the meaning given in section 18(3),

• “heat network consent application” has the meaning given in section 22(2),

• “heat network consent modification application” has the meaning given in section 26(3),

• “heat networks licence” has the meaning given in section 2(5),

• “heat network zone” has the meaning given in section 46(3),

• “licensing authority” has the meaning given in section 4,

• “permit authority” has the meaning given in section 55,

• “the Scottish Fuel Poverty Advisory Panel” means the panel established under section 14(1) of the Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019,

• “thermal energy” has the meaning given in section 1(5).

• (2) References in this Act to the construction of a heat network are to be construed in accordance with section 18(2).

• (3) In this Act, references to a person holding a heat network consent are references to the person for the time being entitled to the benefit of the heat network consent whether as a result of—

• (a) the grant of the consent to the person—

• (i) under section 23(1)(a), or

• (ii) pursuant to an appeal under section 31(2), or

• (b) a transfer of the consent to the person under section 25(1).

Commencement

102

• (1) This section and sections 97 to 101 and 103 come into force on the day after Royal Assent.

• (2) The other provisions of this Act come into force on such day as the Scottish Ministers may by regulations appoint.

• (3) Regulations under subsection (2) may—

• (a) include transitional, transitory or saving provision,

• (b) make different provision for different purposes.

Short title

103

The short title of this Act is the Heat Networks (Scotland) Act 2021.

Requirement for heat network consent

Power to designate heat network zone

Meaning of “permit authority”

Building assessment reports

Compulsory acquisition of land by licence holder

Identifying key heat network assets

Heat network supply targets

Fees for applications etc.

Fees for applications etc.

Editorial notes

[^key-0c18c0967d50932f3e1f352bfb07a8a6]: S. 27 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-0c88f04dbfc2cc6bfd4b632899aff52c]: S. 88 in force at 16.1.2023 by S.S.I. 2022/376, reg. 2, sch.

[^key-1a50b39e6527ead3799dc3b12a9cea4b]: S. 90 in force at 16.1.2023 by S.S.I. 2022/376, reg. 2, sch.

[^key-1d8ac3fb50752f09f9236cbaa063d8a5]: S. 41 in force at 16.1.2023 by S.S.I. 2022/376, reg. 2, sch.

[^key-29d78073f99d6f80374ca09c58151a2a]: S. 47 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-3df545f9cbd43142f06e05396e0b0545]: S. 48 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-4d174c1701a19a54dd3d9b6f75da6297]: S. 84 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-559463413d8369e28984e14bbb211947]: S. 32 in force at 16.1.2023 by S.S.I. 2022/376, reg. 2, sch.

[^key-65ee0de8eee21dac1727386f4b2d8663]: S. 50 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-6e734432555bc8ffa3f5d9544f771aa2]: S. 63 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-708a1867981a5951b2620841b14ae9bf]: S. 64 in force at 16.1.2023 by S.S.I. 2022/376, reg. 2, sch.

[^key-73e2dda02f958e43fac086cf576b7239]: S. 89 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-8401042329abffb7748a900e3bfa85a0]: S. 66 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-94c9919f70473f9aff37b268ecf3156e]: S. 54 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-a24b8d22296613c2be69179e2c6ec259]: S. 87 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-b12613927e30cbcbe42d3d555bd566fc]: S. 34 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-b2d172a3fb8a0f244f2172802a74282e]: S. 67 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-cd325994e83a547b3cfc8d5216141dac]: S. 37 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-d371312c78ba02f9838012b500204024]: S. 19 in force at 16.1.2023 by S.S.I. 2022/376, reg. 2, sch.

[^key-f9e4246a3a3164cd27127c82bf2b4850]: S. 35 in force at 16.1.2023 by S.S.I. 2022/376, reg. 2, sch.

[^key-fa28b64f907bb619913262b64b8d0f36]: S. 85 in force at 16.1.2023 for specified purposes by S.S.I. 2022/376, reg. 2, sch.

[^key-a64f2da6edff998ccc43111f67e75559]: S. 92 in force at 31.3.2023 by S.S.I. 2023/77, reg. 2

[^key-f4566736252ea1a6f8d32eb4ddb170f0]: S. 47 in force at 30.5.2023 in so far as not already in force by S.S.I. 2023/148, reg. 2(1)(2)(b)

[^key-a37af2b3c135d2e1391eb19cd0e940da]: S. 48 in force at 30.5.2023 in so far as not already in force by S.S.I. 2023/148, reg. 2(1)(2)(c)

[^key-7da544c2056a42788d21bd85a389ae02]: S. 50 in force at 30.5.2023 in so far as not already in force by S.S.I. 2023/148, reg. 2(1)(2)(e)

[^key-8e92feb3d3d69a4d2b3075d9b213f919]: S. 54 in force at 30.5.2023 in so far as not already in force by S.S.I. 2023/148, reg. 2(1)(2)(i)

[^key-c9598eb89cbf656efcea1d4b2fb8d4f5]: S. 63 in force at 30.5.2023 in so far as not already in force by S.S.I. 2023/148, reg. 2(1)(2)(j)

[^key-9f85bc429cc6166aeb3924ca391083a3]: S. 66 in force at 30.5.2023 in so far as not already in force by S.S.I. 2023/148, reg. 2(1)(2)(l)

[^key-f4f424195ab5bfafd1680145c1149e73]: S. 67 in force at 30.5.2023 in so far as not already in force by S.S.I. 2023/148, reg. 2(1)(2)(m)

[^key-dda86a926eb3af5e6ba76c670f020b18]: S. 46 in force at 30.5.2023 by S.S.I. 2023/148, reg. 2(1)(2)(a)

[^key-8c568b390c8d03f84c2806c6de8f4f2e]: S. 49 in force at 30.5.2023 by S.S.I. 2023/148, reg. 2(1)(2)(d)

[^key-6ec455258cf75feb2c2e491d62cddaa0]: S. 51 in force at 30.5.2023 by S.S.I. 2023/148, reg. 2(1)(2)(f)

[^key-de681e3d6f267f81f7d3ba67ed70f966]: S. 52 in force at 30.5.2023 by S.S.I. 2023/148, reg. 2(1)(2)(g)

[^key-9f8fc51615d45b0676df8e372704bbb3]: S. 53 in force at 30.5.2023 by S.S.I. 2023/148, reg. 2(1)(2)(h)

[^key-413a0ad4e3238b5d0af8dbb8cf9c414b]: S. 65 in force at 30.5.2023 by S.S.I. 2023/148, reg. 2(1)(2)(k)

[^key-eaddb40a05d595258d7106c527240488]: S. 93 in force at 30.5.2023 by S.S.I. 2023/148, reg. 2(1)(2)(n)

[^key-2028829c87e84219add21d1cadd95e1c]: S. 4 renumbered as s. 4(1) (26.10.2023) by Energy Act 2023 (c. 52), ss. 223(3)(a), 334(2)(l)

[^key-9ec113117afd0472464f7d44d777c278]: S. 4(2)(3) inserted (26.10.2023) by Energy Act 2023 (c. 52), ss. 223(3)(b), 334(2)(l)

[^key-1c658f1921812faa4e7f2865d5f6a526]: S. 92(1)(c) inserted (24.11.2023) by The Heat Networks (Supply Targets) (Scotland) Regulations 2023 (S.S.I. 2023/358), regs. 1, 2(2)

[^key-a4166583e80f5b8735d76f2fa3e09df4]: Ss. 16A-16C inserted (27.1.2026) by The Heat Networks (Market Framework) (Great Britain) Regulations 2025 (S.I. 2025/269), regs. 1(4), 68(3)

[^key-92c84a939ad1e8a269fccc770c9cd275]: S. 12A and cross-heading inserted (27.1.2026) by The Heat Networks (Market Framework) (Great Britain) Regulations 2025 (S.I. 2025/269), regs. 1(4), 68(2)

Meaning of “heat network”

Enforcement

12A

• (1) The conditions of a heat networks licence may be enforced as if—

• (a) they were conditions of a heat network authorisation, as defined in paragraph 13 of Schedule 18 to the Energy Act 2023, conferred on the person holding the heat networks licence; and

• (b) the licensing authority were the Regulator as defined in section 217 of that Act.

• (2) However, any offences created under Part 8 of the Energy Act 2023 have effect for the purpose of subsection (1) as if they were each triable only summarily and punishable on conviction with imprisonment for a period not exceeding 3 months or a fine not exceeding level 1 on the standard scale (or both).

16A

• (1) The licensing authority must keep under review the supply of thermal energy by means of heat networks in Scotland.

• (2) The licensing authority must, so far as it appears to it to be practicable from time to time to do so, monitor the carrying on of the activity mentioned in subsection (1), and the persons by whom it is carried on, with a view to facilitating the exercise of its function of enforcing the conditions of heat network licences.

16B

• (1) To enable the licensing authority to comply with the duty in section 16A(2), the licensing authority may, by notice given to a person supplying thermal energy by means of a heat network, require that person to provide in the form and manner specified in the notice—

• (a) documents specified or described in the notice that are in that person’s custody or under that person’s control; and

• (b) information specified or described in the notice that relates to matters the licensing authority is under a duty to monitor.

• (2) The notice must specify the time and place at which the person must give the documents or information to the licensing authority.

• (3) The requirements of this section may be enforced as if—

• (a) they were relevant requirements as defined in paragraph 37(6) of Schedule 18 to the Energy Act 2023;

• (b) the person to whom the notice under subsection (1) is given were a person holding a heat network authorisation within paragraph 13 of Schedule 18 to that Act;

• (c) the licensing authority were the Regulator as defined in section 217 of that Act; and

• (d) the modifications in relation to offences in section 12A(2) of this Act also applied for the purpose of this subsection.

16C

• (1) The licensing authority must maintain records of information obtained under or by virtue of this Act relating to—

• (a) persons whose application for a heat networks licence has been refused;

• (b) persons whose heat networks licence has been revoked.

• (2) The licensing authority is not required to maintain any records referred to in subsection (1) for longer than it considers appropriate having regard to the nature of the records and the purposes for which they may lawfully be used or disclosed by the licensing authority.

• (3) This section does not affect the operation of the Public Records Act 1958 or the data protection legislation (within the meaning of the Data Protection Act 2018).