As the cost-effectiveness tool is currently being revised by the department for Business, Energy and Industrial Strategy (BEIS), pending the revision of the tool it is advised that no further assessments should be undertaken.

The remaining requirements in the Regulations are unaffected (for example in relation to building-level meters and newly constructed buildings connected to a district heating network and those buildings on district heating networks that undergo a major renovation).

BEIS is working towards launching a public consultation in early 2017 on a revised methodology for assessing the cost effectiveness of metering for communal and older (pre December 2014) district heat networks. Accordingly, Regulatory Delivery (formerly NMRO) will take a pragmatic approach for any non-compliance with this requirement until a new tool and re-testing date is in place.

• The Financial Conduct Authority (FCA) has confirmed that it would not be appropriate for them (the FCA) to impose fines or other disciplinary measures in respect of a breach of the requirement within the heat network (metering and billing) regulations 2014 (as amended), that certain heat suppliers must test whether it is cost-effective to fit heat meters in multi-occupancy buildings, and where appropriate, fit them by 31 December 2016.

• Furthermore, it is unlikely that the FCA would take other regulatory action (where a heat supplier was separately regulated by the FCA) if the only non-compliance was in relation to the requirement to test for and fit meters where cost effective. As such, it is not considered necessary for a heat supplier to inform the FCA if it has been unable to meet this requirement.

The consultation will also seek views on some additional areas where the Regulations could benefit from clarification following the first two years of implementation.

Following the planned public consultation, BEIS intend to launch the new cost effectiveness tool and accompanying regulatory amendments later in 2017.