Behfar Abedinia, general manager at Taconova UK looks at The Heat Network Technical Assurance Scheme (HNTAS) and what It means for stakeholders in the heat network industry.
The Energy Act 2023 is set to revolutionise the heat network sector in UK by granting the government authority to enforce technical standards through new regulations. Central to this transformation is the forthcoming Heat Network Technical Assurance Scheme (HNTAS), scheduled to launch this year. Behfar Abedinia, General Manager at Taconova UK explains more.
HNTAS aims to ensure that heat networks across the country meet minimum performance and reliability criteria. This initiative not only promises enhanced efficiency and reduced carbon emissions but also brings significant implications for various stakeholders, including district heating owners, operators, private and social landlords, managing agents, and service providers like Heat Interface Unit (HIU) manufacturers and billing companies.
Understanding HNTAS
There are approximately 14,000 heat networks that serve 492,000 connections across the UK. These networks provide about 2-3% of the UK's heat, but the Climate Change Committee suggests that around 18% of UK heat could come from heat networks by 2050.
Since late 2022, the Department for Energy Security and Net Zero (DESNZ) has been collaborating with technical experts to develop a comprehensive technical standards Code. This Code outlines specific technical requirements, such as standards for pipe insulation and water flow temperatures, that will become mandatory.
These requirements build upon the voluntary standards previously set out in the Chartered Institution of Building Services Engineers’ (CIBSE) Code of Practice (CP1) from 2020.
To ensure compliance with these new standards, DESNZ is also establishing an assessment and certification scheme. Together, these elements form the HNTAS, which will apply to all heat networks, from small communal systems to extensive city-wide districts, including both new and existing networks.
Core objectives and principles
HNTAS is designed with deliverability and proportionality at its core, aiming to enhance transparency and accountability without imposing undue burdens on operators or consumers.
The key objectives include reducing carbon emissions and costs by improving efficiency of networks, enhancing the consumer experience with better reliability and heat quality, and enhanced data collection for greater accuracy.
This standardisation is expected to improve the industry’s reputation and attract investment.
Demonstrating compliance
HNTAS adopts a performance-based assurance approach, requiring assessments at various stages of a heat network’s lifecycle.
For new networks, assessments are mandatory at three critical points:
- Before Design Initiation: Ensuring plans meet technical standards from the outset.
- Before Construction Begins: Confirming detailed designs comply with requirements.
- Before Operation Commences: Verifying construction aligns with the standards.
An additional assessment will occur two years post-operation to ensure sustained compliance.
Existing networks will undergo assessments after a specified period. Recognising the challenges these networks may face, there will be a transition period to implement necessary metering and monitoring systems. Performance thresholds will be more lenient initially, allowing time for networks to reach full compliance.
Upon achieving HNTAS certification, operators must regularly submit performance data through a digital portal, maintaining transparency and ongoing compliance with key performance indicators.
Governance and regulation
Ofgem, the Office of Gas and Electricity Markets, will act as the regulator for heat networks under the Energy Act 2023. Ofgem will be able to step in where homes and businesses have problems with disproportionate pricing, poor customer service and poor reliability.
Registered assessors, licensed by Code Managers, will carry out the assessments, ensuring consistency and reliability across the industry.
The licensed Code Managers will maintain essential documents, including technical specifications containing the mandatory requirements for networks, assurance procedures to demonstrate compliance, and evidence of their own qualifications to conduct assessments.
Impact on key stakeholders
The introduction of HNTAS will have far-reaching effects on various stakeholders. District heating owners and operators must ensure networks meet new technical standards. This may mean they need to upgrade infrastructure to comply.
Private and social landlords may need to invest in upgrades to communal heating systems to meet standards. Managing agents will play a crucial role in coordinating compliance efforts between landlords, operators, and assessors.
HIU manufacturers will need to ensure their products meet the new technical specifications. In September 2023, the Building Engineering Services Association (BESA) updated the Testing Regime for HIUs, meaning only units that meet strict safety and efficiency criteria will be used in heat networks.
Billing and metering companies will be required to provide accurate metering solutions that align with HNTAS requirements.
Future steps
Stakeholder involvement has been integral to developing HNTAS. Numerous workshops have gathered insights from industry players to shape the scheme effectively.
From now until to the spring, HNTAS pilot programmes will test the scheme on selected networks across the country.
According to gov.uk, the Code documents are now complete (winter 2024) and the technical standards consultation will commence. Then within 2025, the HNTAS will officially launch.
How to prepare for HNTAS
The HNTAS represents a significant shift towards standardised, efficient, and reliable heat networks in UK. While it introduces new responsibilities, it also offers substantial benefits, including cost savings, improved consumer satisfaction, and enhanced industry reputation.
By taking the time to prepare for the inbound regulations by review current compliance and assessing existing systems against CP1 (2020) standards and planning and budgeting for potential investments in infrastructure and training, stakeholders can position themselves for success in a rapidly evolving energy landscape.