New rules: Landlords of multi-let buildings with communal heating, must comply with new regulations
Thursday 19th March 2015
Landlords of multi-let buildings with communal heating systems must comply with new regulations as if they were suppliers of heating, cooling or hot water.
'Communal heating' means the distribution of thermal energy in the form of steam, hot water or chilled liquids from a central source in a building occupied by more than one final customer, for the use of space or process heating, cooling or hot water.
From 31 December 2014, landlords of such buildings must (subject to exceptions) ensure that bills and billing information for the consumption of heating, cooling or hot water by tenants are, among other requirements, accurate and based on actual consumption. This may be problematic for some landlords, depending on how they apportion service charges among tenants of multiple units.
Under the new regulations landlords must also, by 20 April (and at least every four years thereafter), notify the Secretary of State of their communal central heating system, giving its location, the number and types of buildings and customers supplied, and estimates for the yearly heating capacity, heat generated and heat supplied.
From 31 December 2016, they must install meters to measure consumption by each final customer or, where that is not cost-effective or technically feasible, install heat costs allocators and thermostatic radiator valves on each radiator, so they can calculate and enable each final customer to control its consumption. If this is not cost-effective and technically feasible they must use alternative methods of calculating heating and hot water charges.
Landlords of multi-let buildings with communal central heating systems must comply with new regulations as if they were suppliers of heating, cooling or hot water, including making the relevant notification to the Secretary of State by 20 April.
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