Legalize / United Kingdom / Scotland / Act of the Scottish Parliament

Heat Networks (Scotland) Act 2021

Type Act of the Scottish Parliament

Publication 2021-03-30

Last updated 2026-01-27

State In force

Jurisdiction Scotland

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

PART 1 — Heat networks licences

Introductory

Meaning of “heat network”

1

(1) In this Act, a “heat network” means—

(a) a district heat network, or

(b) a communal heating system.

(2) A district heat network is a network by which thermal energy is distributed from one or more sources of production to more than one building.

(3) A communal heating system is a system by which thermal energy is distributed from one or more sources of production to one building comprising more than one building unit.

(4) For the purposes of subsection (2) or (3), where the main purpose of a source of production is to provide thermal energy to a district heat network or (as the case may be) a communal heating system, the source of production forms part of the district heat network or (as the case may be) the communal heating system.

(5) In this Act, “thermal energy” means heating, cooling or hot water.

(6) In subsection (3), “building unit” means part of a building that is designed or altered to be used separately.

(7) The Scottish Ministers may by regulations—

(a) modify the meaning in this section of “heat network”, “district heat network”, “communal heating system” or “thermal energy”,

(b) further define the meaning of any of those terms.

Requirement for heat networks licence

2

(1) A person must not supply thermal energy by means of a heat network unless the person holds a heat networks licence.

(2) A person who contravenes subsection (1) commits an offence.

(3) It is a defence for a person charged with an offence under subsection (2) to show that the person had a reasonable excuse for contravening subsection (1).

(4) A person who commits an offence under subsection (2) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum,

(b) on conviction on indictment, to a fine.

(5) In this Act, “heat networks licence” means a heat networks licence issued under section 5(5).

Exemptions from requirement for heat networks licence

3

(1) The Scottish Ministers may by regulations provide that the requirement imposed by section 2(1) does not apply—

(a) in circumstances specified in the regulations,

(b) in relation to heat networks of a description specified in the regulations.

(2) The Scottish Ministers may direct that the requirement imposed by section 2(1) does not apply—

(a) to—

(i) a person specified by name in the direction,

(ii) persons of a description specified in the direction,

(b) in relation to heat networks of a description specified in the direction.

(3) Where the Scottish Ministers issue a direction under subsection (2), they must—

(a) do so in writing, and

(b) publish the direction in such manner as they consider appropriate.

(4) The Scottish Ministers may grant an exemption by regulations under subsection (1) or by a direction under subsection (2)—

(a) either—

(i) indefinitely, or

(ii) for a period specified in the regulations or the direction,

(b) either—

(i) unconditionally, or

(ii) subject to conditions specified in the regulations or the direction.

(5) The Scottish Ministers may revise or revoke a direction under subsection (2).

(6) Subsection (3) applies to the revision or revocation of a direction under subsection (2) as it applies to such a direction.

(7) Regulations under subsection (1), or a direction under subsection (2), may make different provision for different areas.

Meaning of “licensing authority”

4

(1) In this Act, the “licensing authority” means—

(a) the Scottish Ministers, or

(b) such other person as the Scottish Ministers by regulations designate as the licensing authority for the purposes of this Act.

(2) Subsection (1) is subject to subsection (3).

(3) If the Secretary of State designates the Gas and Electricity Markets Authority as the licensing authority for the purposes of this Act by regulations under section 223(1) of the Energy Act 2023, references in this Act to the licensing authority are references to the Gas and Electricity Markets Authority.

Heat networks licence applications

5

(1) A person may apply to the licensing authority for a heat networks licence.

(2) An application under subsection (1) is referred to in this Part as a “heat networks licence application”.

(3) The licensing authority may grant a heat networks licence application only if it is satisfied that the applicant has the ability to perform the activities that would be authorised by the licence.

(4) In assessing an applicant's ability to perform those activities, the licensing authority must have regard to the following matters (in so far as relevant to the performance of those activities)—

(a) the applicant's knowledge, expertise and experience,

(b) the applicant's ability to operate a heat network in a manner that—

(i) minimises greenhouse gas emissions (within the meaning of the Climate Change (Scotland) Act 2009) from the heat network,

(ii) takes account of the just transition principles (within the meaning of section 35C of that Act), and

(iii) contributes to meeting the fuel poverty targets, and

(5) As soon as practicable after granting a heat networks licence application, the licensing authority must issue the licence to the applicant.

(6) Where the licensing authority proposes to refuse a heat networks licence application, it must give the applicant notice—

(a) stating that it proposes to refuse the application,

(b) stating the reasons why it proposes to refuse the application, and

(c) specifying the period (which is to be not less than 28 days from the date on which the notice is given) within which the applicant may make representations about the proposed refusal to the licensing authority.

(7) As soon as practicable after refusing a heat networks licence application, the licensing authority must notify the applicant of the refusal.

Conditions of heat networks licence

Heat networks licence standard conditions

6

(1) The licensing authority must determine conditions relating to the obligations of persons holding heat networks licences.

(2) In this Part, the conditions determined under subsection (1) are referred to as the “standard conditions”; and references to the standard conditions include those conditions as they may be modified from time to time under section 7(2)(b)(i).

(3) The standard conditions may in particular—

(a) include standard conditions that are to apply to—

(i) all heat networks licences,

(ii) heat networks licences of a particular description,

(b) make provision for—

(i) the standard conditions (or any of them) not to apply to a particular heat networks licence or heat networks licences of a particular description in such circumstances as may be specified in the standard conditions,

(ii) the coming into effect and suspension of the standard conditions (or any of them) in such manner and in such circumstances as may be specified in the standard conditions,

(c) include conditions relating to the standards of service to be provided by the person holding a heat networks licence.

(4) Subject to subsection (5), each heat networks licence has incorporated in it by reference such of the standard conditions as are applicable to it.

(5) The licensing authority may, in granting a particular heat networks licence application, exclude or modify any of the standard conditions to such extent as it considers appropriate in the circumstances of the case.

(6) Before making any modification under subsection (5), the licensing authority must give notice of the proposed modification to the applicant of the particular heat networks licence application.

(7) The notice must—

(a) state the reasons why the modification 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) within which the applicant may make representations about the proposed modification to the licensing authority.

(8) In determining the standard conditions under subsection (1), the licensing authority must have regard in particular to—

(a) the interests of users of thermal energy supplied by means of a heat network,

(b) the desirability of furthering or promoting the reduction of greenhouse gas emissions (within the meaning of the Climate Change (Scotland) Act 2009) from the operation of heat networks,

(i) thermal energy generated from renewable sources,

(ii) waste heat or cold.

(9) In subsection (8)(c)(ii), “waste heat or cold” means heat or cold generated as a result of a use of (or process affecting) land, which would disperse unused if released into air or water.

Heat networks licence standard conditions: supplementary

7

(1) The licensing authority must publish the standard conditions.

(2) The licensing authority—

(a) must from time to time review the standard conditions, and

(b) may—

(i) modify the standard conditions, and

(ii) make any modification of the conditions of any heat networks licence it considers appropriate as a consequence of any modification of the standard conditions.

(3) Before making any modification under subsection (2)(b), the licensing authority must—

(a) give notice of the proposed modification to every person who holds a heat networks licence whose licence would be affected by the modification, and

(b) publish the notice.

(4) The notice must—

(a) state the reasons why the modification is proposed, and

(b) specify the period (which is to be not less than 28 days from the date of publication of the notice) within which representations about the proposed modification may be made to the licensing authority.

(5) Where the licensing authority modifies the standard conditions, it must publish the standard conditions as modified.

Heat networks licence special conditions

8

(1) In addition to the standard conditions, the licensing authority may include in a heat networks licence any special conditions (whether or not relating to the activities to be authorised by the licence) it considers appropriate.

(2) The licensing authority may provide in a heat networks licence that a special condition of the licence—

(a) has effect or ceases to have effect, or

(b) may be modified,

at such time, in such manner and in such circumstances as the licensing authority considers appropriate.

Duration of heat networks licence

Period of effect of heat networks licence

9

A heat networks licence—

(a) has effect on the date specified in the licence, and

(b) continues to have effect unless the licence is—

(i) revoked by the licensing authority in accordance with section 11, or

(ii) surrendered by the person holding the licence in accordance with the conditions of the licence.

Modification of heat networks licence

10

(1) The licensing authority may make any modification of a heat networks licence it considers appropriate.

(2) The licensing authority may modify a heat networks licence under subsection (1)—

(a) following an application by the person holding the licence, or

(b) on the licensing authority's own initiative.

(3) An application mentioned in subsection (2)(a) is referred to in this Part as a “heat networks licence modification application”.

(4) Before modifying a heat networks licence under subsection (1), the licensing authority must give notice of the proposed modification to the person holding the licence.

(5) The notice must—

(a) state the reasons why the modification 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) within which the person holding the licence may make representations about the proposed modification to the licensing authority.

(6) Where the licensing authority modifies a heat networks licence under subsection (1), it must give a copy of the licence as modified to the person holding the licence.

(7) This section does not apply in relation to the modification of the conditions of a heat networks licence by the licensing authority in consequence of any modification of the standard conditions (see section 7(2)(b)(ii)).

Revocation of heat networks licence

11

(1) The licensing authority may revoke a heat networks licence if it considers that the person holding the licence—

(a) no longer has the ability to perform the activities authorised by the licence, or

(b) has failed to comply with a condition of the licence.

(2) For the purposes of subsection (1)(a)—

(a) in deciding whether the person holding a heat networks licence no longer has the ability to perform the activities authorised by the licence, the licensing authority is to have regard to the matters mentioned in section 5(4), and

(b) it does not matter whether or not the person holding the heat networks licence has failed to comply with a term of the licence.

(3) The licensing authority may not revoke a heat networks licence under subsection (1) unless it is satisfied that revocation is reasonable having regard to—

(a) the terms of the licence,

(b) the responsibilities of the person holding the licence to the person's customers, and

(4) Before revoking a heat networks licence under subsection (1), the licensing authority must give notice of the proposed revocation to the person holding the licence.

(5) The notice must—

(a) state the reasons why the revocation 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) within which the person holding the licence may make representations about the proposed revocation to the licensing authority.

(6) The licensing authority may revoke a heat networks licence under subsection (1) by giving notice of revocation to the person holding the licence.

(7) A notice of revocation must specify—

(a) the reasons for the revocation, and

(b) the date from which the revocation is to have effect.

(8) The Scottish Ministers may by regulations make further provision about the procedure to be followed in connection with the revocation of a heat networks licence under subsection (1).

Appeals against revocation of heat networks licence

12

(1) The Scottish Ministers may by regulations make provision for or about appeals against revocation of heat networks licences.

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

(a) who may appeal,

(b) grounds of appeal,

(d) the information to be provided when making appeals,

(e) the procedure for determining appeals,

(f) who may determine appeals,

(g) the manner in which appeals are to be conducted,

(h) decisions that may be taken on appeal,

(i) how the determination of appeals is to be notified.

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

Miscellaneous

Form and manner etc. of applications under Part 1

13

(1) The Scottish Ministers may determine—

(a) the form and manner in which—

(i) a heat networks licence application is to be made,

(ii) a heat networks licence modification application is to be made,

(b) the information (including the information in the form of a document) that must be included in—

(i) a heat networks licence application,

(ii) a heat networks licence modification application.

(2) The Scottish Ministers must arrange for any determination under subsection (1) to be published in such manner as they consider appropriate.

(3) The licensing authority need not consider—

(a) a heat networks licence application, or

(b) a heat networks licence modification application,

that does not comply with a requirement determined under subsection (1).

Regulations about determining applications under Part 1

14

The Scottish Ministers may by regulations make provision about—

(a) the procedure to be followed by the licensing authority in determining—

(i) a heat networks licence application,

(ii) a heat networks licence modification application,

(b) the notification and publication of—

(i) such an application,

(ii) determinations made in relation to it.

Guidance for licensing authority

15

(1) The Scottish Ministers may issue guidance to the licensing authority about the exercise of its functions under this Part.

(2) Guidance under subsection (1) may in particular include guidance relating to—

(a) the matters mentioned in section 5(4) (either generally or in a particular case or category of case),

(b) the exercise of the licensing authority's functions under this Part as they apply in relation to the supply of thermal energy by means of an existing heat network,

(d) methods of communication with persons applying for, and persons holding, a heat networks licence.

(3) The licensing authority must have regard to any guidance issued under subsection (1).

(4) The Scottish Ministers must publish guidance issued under subsection (1) in such manner as they consider appropriate.

Register of heat networks licences

16

(1) The licensing authority must prepare and maintain a register of heat networks licences.

(2) The register must contain the following information about each heat networks licence—

(a) the name and address of the person to whom the licence was issued,

(b) the terms of the licence,

(d) if the licence is not continuing in effect, the date on which the licence ceased to have effect.

(3) The register must also contain such other information as the Scottish Ministers may by regulations specify.

(4) The licensing authority must make arrangements to enable members of the public to inspect the register free of charge.

Interpretation of Part 1

17

(1) In this Part—

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

“heat networks licence modification application” has the meaning given in section 10(3),

“standard conditions” has the meaning given in section 6(2).

(2) In this Part, references to the activities authorised (or to be, or would be, authorised) by a heat networks licence means the supply of thermal energy by means of a heat network by the person holding the licence.

Introductory

18

(1) A heat network must not be constructed or operated except in accordance with a heat network consent relating to—

(a) the construction of the heat network, or (as the case may be)

(b) the operation of the heat network.

(2) References in this Act to the construction of a heat network include references to the construction of an extension to an existing heat network.

(3) In this Act, a “heat network consent” means—

(a) a consent granted—

(i) under section 23(1)(a), or

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

(b) such a consent that is transferred under section 25(1).

19

(1) The Scottish Ministers may by regulations provide that the requirement imposed by section 18(1) does not apply—

(a) in circumstances specified in the regulations,

(b) in relation to heat networks of a description specified in the regulations.

(2) Regulations under subsection (1) may grant an exemption—

(a) either—

(i) indefinitely, or

(ii) for a period specified in the regulations,

(b) either—

(i) unconditionally, or

(ii) subject to conditions specified in the regulations.

(3) Regulations under subsection (1) may make different provision for different areas.

20

(1) The Scottish Ministers may by regulations designate a local authority as the consent authority for the area of the local authority for the purposes of this Part.

(2) Where a local authority makes a written request to the Scottish Ministers that it be designated under subsection (1) as the consent authority for its area, the Scottish Ministers must make regulations under subsection (1) so designating the local authority before the expiry of the period of 6 months beginning with the day on which the request was made unless the local authority has withdrawn the request in writing.

(3) Regulations under subsection (1) may make provision modifying this Part and Part 7 in consequence of the designation made by the regulations.

(4) Before making regulations under subsection (1), the Scottish Ministers must consult—

(a) the local authority whom the regulations would (if made) designate as the consent authority for its area, and

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

(5) Where regulations under subsection (1) are subject to the affirmative procedure, the references in subsections (2) and (4) to making regulations under subsection (1) are to be read as references to laying a draft of a Scottish statutory instrument containing regulations under subsection (1) before the Scottish Parliament.

21

In this Part, the “appropriate consent authority”, in relation to an application made or a consent granted under this Part in relation to a heat network, means—

(a) where the heat network is (or is to be) situated in the area of a local authority that has been designated as the consent authority for the area under section 20(1), that local authority,

(b) otherwise, the Scottish Ministers.

22

(1) A person may apply to the appropriate consent authority for a heat network consent.

(2) An application under subsection (1) is referred to in this Act as a “heat network consent application”.

(3) A person may make a heat network consent application in relation to—

(a) the construction of a heat network,

(b) the operation of a heat network, or

23

(1) The appropriate consent authority may—

(a) agree to a heat network consent application and grant a heat network consent, or

(b) refuse the application.

(2) Subsection (3) applies to a heat network consent application relating to—

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

(b) the operation of a heat network.

(3) Before agreeing to the application and granting a heat network consent for a heat network, the appropriate consent authority must be satisfied that each person to whom the consent is to be granted has (or will have) a right to use each listed asset of the heat network for the purpose of operating the heat network.

(4) Where the appropriate consent authority proposes to refuse a heat network consent application, it must give the applicant notice—

(a) stating that it proposes to refuse the application,

(b) stating the reasons why it proposes to refuse the application, and

(c) specifying the date by which the applicant may make representations about the proposed refusal to the appropriate consent authority.

(5) In subsection (3), “listed asset”, in relation to a heat network, has the meaning given in section 91.

24

The appropriate consent authority may grant a heat network consent subject to any conditions or limitations it considers appropriate.

25

(1) The person holding a heat network consent may transfer the consent to another person with the agreement of the appropriate consent authority.

(2) The appropriate consent authority may agree to a transfer of a heat network consent under subsection (1) subject to any—

(a) modification of any condition or limitation of the consent, or

(b) additional condition or limitation of the consent,

as it considers appropriate.

26

(1) The appropriate consent authority may make any modification of a heat network consent it considers appropriate.

(2) The appropriate consent authority may modify a heat network consent under subsection (1)—

(a) following an application by the person holding the heat network consent, or

(b) on the appropriate consent authority's own initiative.

(3) An application mentioned in subsection (2)(a) is referred to in this Act as a “heat network consent modification application”.

(4) Where the appropriate consent authority modifies a heat network consent under subsection (1), it must give a copy of the consent as modified to the person holding the consent.

27

(1) The appropriate consent authority may revoke a heat network consent in such circumstances as may be specified by the Scottish Ministers by regulations.

(2) Before revoking a heat network consent under subsection (1), the appropriate consent authority must give notice of the proposed revocation to the person holding the consent.

(3) The notice must—

(a) state the reasons why the revocation 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) within which the person holding the consent may make representations about the proposed revocation to the appropriate consent authority.

(4) The appropriate consent authority may revoke a heat network consent under subsection (1) by giving notice of revocation to the person holding the consent.

(5) A notice of revocation must specify—

(a) the reasons for the revocation, and

(b) the date from which the revocation is to have effect (subject to section 28(2)).

(6) The date referred to in subsection (5)(b) must be specified in accordance with any minimum period of notice to be given by a notice of revocation as may be specified in regulations under subsection (7).

(7) The Scottish Ministers may by regulations make further provision about the procedure to be followed in connection with the revocation of a heat network consent under subsection (1).

Appeals against notice of revocation given by local authority

28

(1) Where a local authority gives a notice of revocation to a person under section 27(4), the person may appeal to the Scottish Ministers against the notice.

(2) Where an appeal is made under subsection (1) against a revocation notice, the notice has no effect pending the final determination or withdrawal of the appeal.

(3) The Scottish Ministers may by regulations make further provision about appeals under subsection (1).

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

(a) the way in which appeals are to be made, including time limits for making appeals,

(b) matters that may be raised in appeals,

(d) the procedure in connection with determining appeals,

(e) the manner in which appeals are to be conducted,

(f) decisions that may be taken on appeal,

(g) how the determination of appeals is to be notified.

(5) The provision that may be made by virtue of subsection (4)(e) includes provision about the holding of an inquiry or hearing for the purpose of determining an appeal, including—

(a) the hearing of evidence at an inquiry or hearing in public or otherwise including any procedure to apply where evidence is not to be heard in public or documentary evidence is not be open to public inspection,

(b) the appointment of persons to hold an inquiry or hearing,

(d) the timing of an inquiry or hearing,

(e) notification of an inquiry or hearing,

(f) attendance of required persons at an inquiry or hearing,

(g) giving of evidence of persons required to attend an inquiry or hearing,

(h) consequences of persons failing to attend an inquiry or hearing or to provide information required by an inquiry or hearing, including the creation of offences,

(i) the payment of expenses by parties to the inquiry or hearing.

(6) The maximum penalty that may be provided for in regulations under subsection (3) creating an offence is, on summary conviction, a fine not exceeding level 1 on the standard scale or imprisonment for a period not exceeding 3 months.

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

Applications to local authorities: Ministerial powers of call-in, direction and appeal

29

(1) The Scottish Ministers may give directions requiring an application of a type mentioned in subsection (2) to be referred to them instead of being dealt with by a local authority as the appropriate consent authority.

(2) The types of applications are—

(a) a heat network consent application,

(b) a heat network consent modification application,

(c) an application for a consent, agreement or approval required by a condition to which a heat network consent is subject.

(3) A direction under subsection (1)—

(a) must be set out in writing,

(b) may be withdrawn or modified by a subsequent direction,

(c) may be given to a particular local authority acting as the appropriate consent authority or to local authorities acting in that capacity generally,

(d) may relate either to a particular application or to applications of such description as may be specified in the direction.

(4) Any application in respect of which a direction has effect under subsection (1) must be referred to the Scottish Ministers.

(5) Where an application is referred to the Scottish Ministers under this section (a “called-in application”), sections 23, 24, 26 and 33(5) apply to the called-in application as they apply to an application that is to be determined by a local authority as the appropriate consent authority except that the references in those sections to “the appropriate consent authority” are to be read as references to “the Scottish Ministers”.

(6) The Scottish Ministers may by regulations make further provision about directions under subsection (1) and the determination of called-in applications pursuant to such a direction.

(7) Regulations under subsection (6) may in particular include provision about—

(a) the notification and publication of directions—

(i) given under subsection (1), or

(ii) withdrawn or modified under subsection (3)(b),

(b) the procedure for determining called-in applications.

(8) Regulations under subsection (6) may modify any enactment (including this Act).

30

(1) The Scottish Ministers may by regulations make provision for or about regulating the manner in which applications mentioned in subsection (2) are to be dealt with by local authorities as appropriate consent authorities.

(2) The applications are—

(a) a heat network consent application,

(b) a heat network consent modification application,

(c) an application for a consent, agreement or approval required by a condition to which a heat network consent is subject.

(3) Regulations under subsection (1) may in particular make provision—

(a) for enabling the Scottish Ministers to give directions restricting the grant of an application mentioned in subsection (2), either indefinitely or during such period as may be specified in the directions, in respect of any such heat network, or in respect of a heat network of any such description, as may be so specified,

(b) for enabling the Scottish Ministers to give directions to a local authority as the appropriate consent authority requiring it, in respect of any such heat network, or in respect of a heat network of any such description, as may be specified in the directions—

(i) to consider, where the local authority is minded to grant a heat network consent, imposing a condition specified in, or of a nature indicated in, the directions, and

(ii) (unless the directions are withdrawn) not to grant the heat network consent without first satisfying the Scottish Ministers that such consideration has been given and that such a condition either will be imposed or need not be imposed,

(c) for requiring, or enabling directions to be made requiring, a local authority as the appropriate consent authority to give to the Scottish Ministers and to such other persons as may be specified in the regulations (or in directions given by the Scottish Ministers under the regulations) such information as may be so specified with respect to applications for heat network consent made to the local authority, including information as to the manner in which any such application has been dealt with.

31

(1) Subsection (2) applies where a local authority as the appropriate consent authority—

(a) refuses a heat network consent application,

(b) grants a heat network consent, but subject to a condition or limitation,

(c) refuses an application for a consent, agreement or approval required by a condition to which a heat network consent is subject,

(d) grants an application for a consent, agreement or approval required by a condition to which a heat network consent is subject, but subject to a condition,

(e) modifies a heat network consent under section 26(1) (whether following a heat network consent modification application or on its own initiative),

(f) refuses a heat network consent modification application,

(g) fails to give notice, within the relevant period, of its decision to the applicant in relation to—

(i) a heat network consent application,

(ii) a heat network consent modification application,

(iii) an application for a consent, agreement or approval to which a heat network consent application is subject.

(2) The applicant may appeal to the Scottish Ministers against the decision or failure (as the case may be) of the local authority.

(3) In subsection (1)(g), “relevant period” means—

(a) such period as may be specified in regulations under section 35(1), or

(b) such other period as may be agreed in writing between the applicant and the local authority in relation to the application (before or after it is made).

(4) The Scottish Ministers may by regulations make further provision about appeals under subsection (2).

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

(a) the way in which appeals are to be made, including time limits for making appeals,

(b) matters that may be raised in appeals,

(d) the procedure in connection with determining appeals,

(e) the manner in which appeals are to be conducted,

(f) decisions that may be taken on appeal,

(g) how the determination of appeals is to be notified.

(6) The provision that may be made by virtue of subsection (5)(e) includes provision about the holding of an inquiry or hearing for the purpose of determining an appeal, including—

(a) the hearing of evidence at an inquiry or hearing in public or otherwise including any procedure to apply where evidence is not to be heard in public or documentary evidence is not be open to public inspection,

(b) the appointment of persons to hold an inquiry or hearing,

(d) the timing of an inquiry or hearing,

(e) notification of an inquiry or hearing,

(f) attendance of required persons at an inquiry or hearing,

(g) giving of evidence of persons required to attend an inquiry or hearing,

(h) consequences of persons failing to attend an inquiry or hearing or to provide information required by an inquiry or hearing, including the creation of offences,

(i) the payment of expenses by parties to the inquiry or hearing.

(7) The maximum penalty that may be provided for in regulations under subsection (4) creating an offence is, on summary conviction, a fine not exceeding level 1 on the standard scale or imprisonment for a period not exceeding 3 months.

(8) Regulations under subsection (4) may modify any enactment (including this Act).

Compensation

32

(1) The Scottish Ministers may by regulations make provision for or about the payment of compensation to the person holding a heat network consent in consequence of—

(a) the modification of a heat network consent as mentioned in section 26(2)(b),

(b) the revocation of a heat network consent in accordance with regulations under section 27.

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

(a) the circumstances in which compensation is payable,

(b) the calculation of compensation,

(d) the review of decisions made under the regulations,

(e) appeals against decisions made under the regulations.

(3) Before making regulations under subsection (1), the Scottish Ministers must consult local authorities and such other persons as they consider appropriate.

Miscellaneous

Form and manner etc. of applications under Part 2

33

(1) The Scottish Ministers may determine—

(a) the form and manner in which a relevant application is to be made,

(b) the information (including the information in the form of a document) that is to be included in a relevant application.

(2) In determining under subsection (1)(b) the information that is to be included in a relevant application, the Scottish Ministers may determine that a relevant application of such description as may be specified in the determination must include a community engagement report.

(3) A “community engagement report”, in relation to a relevant application, is a report describing—

(a) the community engagement undertaken by the applicant in relation to the proposed application before making the application in accordance with any guidance issued under section 34(1), and

(b) how the applicant has taken account of any representations received by virtue of the community engagement before making the application.

(4) The Scottish Ministers must arrange for any determination under subsection (1) to be published in such manner as they consider appropriate.

(5) The appropriate consent authority need not consider a relevant application that does not comply with a requirement determined under subsection (1).

(6) Before making a determination under subsection (1), the Scottish Ministers must consult local authorities and such other persons as they consider appropriate.

(7) In this section and sections 34 and 35, a “relevant application” means—

(a) a heat network consent application,

(b) a heat network consent modification application,

(c) an application for a consent, agreement or approval required by a condition to which a heat network consent is subject.

Effective community engagement: guidance

34

(1) The Scottish Ministers may issue guidance about undertaking effective community engagement in relation to a relevant application for the purpose of preparing a community engagement report.

(2) Guidance under subsection (1) may in particular include guidance on—

(a) persons, or persons of a particular description, to be considered as forming part of a community for the purpose of undertaking effective community engagement in relation to a relevant application,

(b) how applicants are to undertake effective community engagement before making a relevant application including ways in which applicants should—

(i) consult communities, and

(ii) encourage participation by communities in the consultation.

(3) Before issuing guidance under subsection (1), the Scottish Ministers must consult such persons as they consider appropriate.

(4) The Scottish Ministers must publish guidance issued under subsection (1) in such manner as they consider appropriate.

(5) A person whose relevant application must include a community engagement report in accordance with a determination under section 33(1)(b) must have regard to any guidance issued under subsection (1) in connection with the application.

(6) In this section, “community engagement report” has the meaning given in section 33(3).

Regulations about decisions under Part 2

35

(1) The Scottish Ministers may by regulations make provision about—

(a) the procedure to be followed in—

(i) determining a relevant application, or

(ii) deciding whether to modify a heat network consent as mentioned in section 26(2)(b),

(b) publication and notification of—

(i) a relevant application,

(ii) determinations made in relation to it,

(2) Regulations under subsection (1) may in particular make provision in connection with the consideration to be given, before determining a relevant application or deciding whether to modify a heat network consent as mentioned in section 26(2)(b), to the likely effect of the construction or operation (as the case may be) of the heat network concerned—

(a) on the environment generally and, in particular, in contributing to the reduction of greenhouse gas emissions (within the meaning of the Climate Change (Scotland) Act 2009), and

(b) in contributing to meeting the fuel poverty targets.

(3) Before making regulations under subsection (1), the Scottish Ministers must consult—

(a) local authorities,

(b) the Scottish Fuel Poverty Advisory Panel, and

36

(1) The Scottish Ministers may by regulations make provision about the making of any application or decision under this Part in circumstances where there is more than one appropriate consent authority in relation to an application or decision.

(2) Regulations under subsection (1) may modify this Act and any regulations made under it.

Meaning of “enforcement authority”

37

In this Part, the “enforcement authority” means—

(a) the Scottish Ministers, or

(b) such other person as the Scottish Ministers by regulations designate as the enforcement authority for the purposes of this Part.

Power to require information about activities on land

38

(1) This section applies where—

(a) section 18(1) applies in relation to a heat network and it appears to the enforcement authority that the heat network—

(i) is being constructed (or has been constructed) on land without a heat network consent in relation to the heat network,

(ii) is being operated (or has been operated) on land without a heat network consent in relation to the heat network, or

(b) it appears to the enforcement authority that there has been a failure to comply with a condition or limitation to which a heat network consent in relation to a heat network situated on land is subject.

(2) The enforcement authority may give notice outlining its concerns (a “contravention notice”) to any person who—

(a) is the owner or occupier of the land or has any other interest in it, or

(b) is carrying out operations on the land or is using it for any purpose.

(3) A contravention notice may require the person to whom it is given to give such information as may be specified in the notice in relation to—

(a) any operations being carried out on the land, any use of the land and any other activities being carried out on the land,

(b) any matter relating to conditions or limitations to which a heat network consent in relation to a heat network situated on the land is subject.

(4) In this section, references to—

(a) the construction or operation of a heat network on land include references to the construction or operation of a heat network under or over the land,

(b) a heat network situated on land include references to a heat network situated under or over the land,

Enforcement notice

39

(1) Where section 18(1) applies in relation to a heat network and it appears to the enforcement authority that the heat network is being (or has been) constructed or operated—

(a) by a person on their own behalf without the person holding a heat network consent in relation to the construction or (as the case may be) operation of the heat network, the enforcement authority may give a written notice to the person,

(b) by a person on behalf of another person without the other person holding a heat network consent in relation to the construction or (as the case may be) operation of the heat network, the enforcement authority may give a written notice to the person or to the other person.

(2) Where it appears to the enforcement authority that there has been a failure by the person holding a heat network consent to comply (or to secure compliance) with a condition or limitation to which the consent is subject, the enforcement authority may give a written notice to the person.

(3) An enforcement notice must specify the date on which it is to take effect which must be no less than 28 days after the date on which the notice is given.

(4) An enforcement notice must—

(a) specify the reasons why the notice has been given, and

(b) specify (either or both)—

(i) the steps that the enforcement authority requires the person to whom the notice is given (or another person acting on behalf of that person) to take,

(ii) the activities that the enforcement authority requires to cease, in order to achieve (wholly or partly) either of the purposes mentioned in subsection (5).

(5) The purposes are—

(a) the person's compliance with section 18(1), or

(b) where the person's failure to comply with section 18(1) has affected the condition of any land, restoring the land to its condition before the failure.

(6) An enforcement notice may require in particular—

(a) the alteration or removal of any buildings or works,

(b) the carrying out of any building or other operations,

(7) An enforcement notice must specify the period for compliance with the notice, and may specify different periods within which different steps are required to be taken or (as the case may be) different activities are required to cease.

(8) In this Part, an “enforcement notice” means a written notice given by the enforcement authority under subsection (1) or (2).

Withdrawal or variation of enforcement notice

40

(1) The enforcement authority may—

(a) withdraw an enforcement notice given by it, or

(b) waive or relax any requirement of such a notice.

(2) The enforcement authority may exercise the power under subsection (1) in relation to an enforcement notice regardless of whether the notice has taken effect.

(3) Immediately after exercising a power under subsection (1) in relation to an enforcement notice, the enforcement authority must give notice of—

(a) the withdrawal of the notice, or (as the case may be)

(b) the waiver or relaxation of any requirement of the notice,

to each person to whom the notice was given.

(4) The withdrawal of an enforcement notice by the enforcement authority under subsection (1) does not affect the power of the enforcement authority to issue a further enforcement notice.

Appeals against enforcement notice

41

(1) The Scottish Ministers may by regulations make provision for or about appeals against enforcement notices.

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

(a) who may appeal,

(b) grounds of appeal,

(d) the information to be provided when making appeals,

(e) the procedure for determining appeals,

(f) who may determine appeals,

(g) the manner in which appeals are to be conducted,

(h) decisions that may be taken on appeal,

(i) how the determination of appeals is to be notified.

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

Offence of failing to comply with enforcement notice

42

(1) If at any time after the end of the period for compliance with an enforcement notice—

(a) any step required by the notice has not been taken, or

(b) any activity required by the notice to cease is being carried on,

the person to whom the notice was given commits an offence.

(2) A person who commits an offence under subsection (1) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum,

(b) on conviction on indictment, to a fine.

(3) It is a defence for a person charged with an offence under subsection (1) to show that—

(a) the person did everything that the person could reasonably be expected to do to secure compliance with the enforcement notice,

(b) the person had a reasonable excuse for failing to ensure that the step concerned was taken or (as the case may be) for failing to ensure the cessation of the carrying on of the activity concerned.

(4) In this Part, references to the period for compliance with an enforcement notice are references to—

(a) the period specified in the notice for compliance with it in accordance with section 39(7), or

(b) such extended period as the enforcement authority may allow for compliance with the notice.

(5) For the purposes of subsection (4)(a), where an enforcement notice specifies that different periods apply to different steps or activities, references to the period for compliance with an enforcement notice, in relation to any step or activity, are references to the period at the end of which the step is required to have been taken or the activity is required to have ceased.

Execution and cost of works required by enforcement notice

43

(1) This section applies if at any time after the end of the period for compliance with an enforcement notice any step required by the notice has not been taken.

(2) The enforcement authority may—

(a) enter the land in relation to which the steps were required to be taken and take those steps, and

(b) recover from the person to whom the enforcement notice was given any expenses reasonably incurred by the enforcement authority in doing so.

(3) In determining the amount of expenses that may be recovered by it under subsection (2), the enforcement authority may include in that amount such proportion of its administrative expenses as it considers appropriate.

(4) When taking steps under subsection (2), the enforcement authority may sell any materials removed by it from the land unless those materials are claimed by the owner of the materials within 3 days of their removal.

(5) After any such sale the enforcement authority must pay the proceeds to the owner of the materials less the expenses recoverable by it from the owner of the materials.

(6) A person commits an offence if the person, without reasonable excuse, intentionally obstructs the enforcement authority in exercising its powers under subsection (2).

(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.

44

(1) Section 57 of the Town and Country Planning (Scotland) Act 1997 (development with government authorisation) is amended as follows.

(2) After subsection (2B) insert—

(2C) On granting or modifying a heat network consent under section 23(1)(a) or 26(1), or pursuant to an appeal under section 31(2), of the Heat Networks (Scotland) Act 2021, the Scottish Ministers may give a direction for planning permission to be deemed to be granted, subject to such conditions (if any) as may be specified in the direction, for— (a) so much of the operation or change of use to which the consent relates as constitutes development, (b) any development ancillary to the operation or change of use to which the consent relates. (2D) On modifying a heat network consent under section 26(1), or pursuant to an appeal under section 31(2), of the Heat Networks (Scotland) Act 2021, the Scottish Ministers may give one or more of the following directions (instead of, or as well as, a direction under subsection (2C))— (a) a direction for an existing planning permission deemed to be granted by virtue of a direction under subsection (2C) (whenever made) to be varied as specified in the direction, (b) a direction for any conditions subject to which any such existing planning permission was deemed to be granted to be varied as specified in the direction, (c) a direction for any consent, agreement or approval given in respect of a condition subject to which any such existing planning permission was deemed to be granted to be treated as given in respect of a condition subject to which a new or varied planning permission is deemed to be granted.

45

(1) This section applies where—

(a) a person who proposes to construct a heat network must first make both—

(i) a heat network consent application in relation the construction of the heat network, and

(ii) an application for planning permission in respect of the construction of the heat network, and

(b) both applications must be made to a local authority as the appropriate consent authority (in relation to heat network consent application) and the planning authority (in relation to the application for planning permission).

(2) Both of the applications are to be considered by the local authority together but this is subject to any provision made in any regulations under subsection (3).

(3) The Scottish Ministers may by regulations—

(a) provide that such procedural provisions of this Act as are specified in the regulations are not to apply to the person's heat network consent application,

(b) provide that such procedural provisions of, or made under, the Town and Country Planning (Scotland) Act 1997 as are specified in the regulations are to apply to the heat network consent application instead,

(c) modify provisions of, or made under, the Town and Country Planning (Scotland) Act 1997 as they apply to the heat network consent application by virtue of paragraph (b).

(4) In this section—

“planning authority” has the meaning given in section 1 of the Town and Country Planning (Scotland) Act 1997,

“planning permission” means planning permission under Part 3 of that Act,

“procedural provisions” means any provisions for or in connection with the procedure for determining an application.

PART 3 — Heat network zones

Designation of heat network zone

Power to designate heat network zone

46

(1) A local authority may at any time designate an area in its area that is particularly suitable for the construction and operation of a heat network in accordance with section 48.

(2) The Scottish Ministers may designate an area in the area of a local authority that is particularly suitable for the construction and operation of a heat network in accordance with section 49.

(3) In this Part, “heat network zone” means an area designated by—

(a) a local authority—

(i) under subsection (1), or

(ii) pursuant to a direction under section 53(1)(a) or (2), or

(b) the Scottish Ministers under subsection (2).

Duty on local authority to review heat network zoning in area

47

(1) Each local authority must carry out a review to consider whether one or more areas in its area is likely to be particularly suitable for the construction and operation of a heat network.

(2) A local authority must carry out—

(a) its first review under subsection (1) as soon as practicable after the day on which this section comes into force,

(b) each subsequent review under that subsection by no later than 5 years after the day on which the local authority last published a statement under subsection (6).

(3) In carrying out a review under subsection (1), a local authority must have regard to the matters mentioned in section 48(1).

(4) If, following a review under subsection (1), the local authority considers that one or more areas considered as part of the review is likely to be particularly suitable for the construction and operation of a heat network, the local authority must, in relation to each area—

(a) proceed to consider whether to designate the area as a heat network zone in accordance with section 48, or

(b) request that the Scottish Ministers consider whether to designate the area as a heat network zone in accordance with section 49.

(5) But a local authority may not make a request under subsection (4)(b) if the area is the subject of a direction under section 53.

(6) After each review, the local authority must publish a statement in relation to each area considered as part of the review—

(a) explaining whether the local authority considers that the area is likely to be particularly suitable for the construction and operation of a heat network,

(b) explaining the reasons for that view, and

(c) if the local authority considers that the area is likely to be particularly suitable for the construction and operation of a heat network—

(i) identifying the area by reference to a map, and

(ii) giving reasons for its decision under subsection (4)(a) or (b).

(7) The Scottish Ministers may specify by regulations, in relation to a statement published under subsection (6)—

(a) any further information that must be included in a statement,

(b) how it is to be published,

(d) such other requirements relating to the statement as they consider appropriate.

Designation of heat network zone by local authority

48

(1) A local authority must, in considering whether to designate an area in its area as a heat network zone, have regard to the following matters—

(a) the potential for use by a heat network of—

(i) thermal energy generated from renewable sources,

(ii) waste heat or cold,

(b) buildings in the area that require considerable and consistent use of thermal energy,

(c) the nature and extent of existing infrastructure in the area that could assist in the development of a heat network in the area,

(d) the potential for a heat network in the area to contribute to meeting the fuel poverty targets,

(e) the potential for a heat network in the area to contribute to meeting the targets specified in section 92(1),

(f) any building assessment report received under section 65, and

(g) such other matter as the Scottish Ministers may specify by regulations.

(2) Before deciding whether to designate an area as a heat network zone, a local authority must consult such persons, and in such manner, as the Scottish Ministers may specify by regulations.

(3) Having had regard to the matters mentioned in subsection (1) and complied with the requirements under subsection (2), the local authority may—

(a) designate the area as a heat network zone, or

(b) decide not to designate the area as a heat network zone.

(4) If a local authority designates an area as a heat network zone it must—

(a) identify the area in a document by reference to a map,

(b) specify in the document the day on which the designation takes effect, and

(5) In subsection (1)(a)(ii), “waste heat or cold” means heat or cold generated as a result of a use of (or process affecting) land, which would disperse unused if released into air or water.

Designation of heat network zone by Scottish Ministers

49

(1) This section applies where the Scottish Ministers are considering whether to designate an area in the area of a local authority as a heat network zone—

(a) pursuant to a request by the local authority under section 47(4)(b), or

(b) on the Scottish Ministers' own initiative.

(2) The Scottish Ministers must, in considering whether to designate the area as a heat network zone, have regard to the matters mentioned in section 48(1).

(3) Before deciding whether to designate the area as a heat network zone, the Scottish Ministers must consult—

(a) each local authority in whose area the proposed heat network zone would be situated,

(b) such other persons as they consider appropriate.

(4) Having had regard to the matters mentioned in section 48(1) and complied with the requirements under subsection (3), the Scottish Ministers may—

(a) designate the area as a heat network zone, or

(b) decide not to designate the area as a heat network zone.

(5) If the Scottish Ministers designate an area as a heat network zone, they must—

(a) identify the area in a document by reference to a map,

(b) specify in the document the day on which the designation takes effect, and

Variation of heat network zone

Variation of heat network zone by local authority

50

(1) A local authority may vary a heat network zone situated in its area if the heat network zone was designated by the local authority under section 46(1).

(2) In considering whether to vary a heat network zone under subsection (1), a local authority must have regard to the matters mentioned in section 48(1).

(3) Before deciding whether to vary a heat network zone under subsection (1), a local authority must consult such persons, and in such manner, as the Scottish Ministers may specify by regulations.

(4) Having had regard to the matters mentioned in section 48(1) and complied with the requirements under subsection (3), the local authority may—

(a) vary the heat network zone, or

(b) decide not to vary the heat network zone.

(5) If the local authority varies the heat network zone, it must—

(a) identify the area of the heat network zone as varied in a document by reference to a map,

(b) specify in the document the day on which the variation takes effect, and

Variation of heat network zone by Scottish Ministers

51

(1) The Scottish Ministers may vary a heat network zone—

(a) following a request by the local authority in whose area the heat network zone is situated, or

(b) on the Scottish Ministers' own initiative.

(2) It does not matter for the purposes of subsection (1) whether the heat network zone was designated by—

(a) a local authority, or

(b) the Scottish Ministers.

(3) In deciding whether to vary a heat network zone under subsection (1), the Scottish Ministers must have regard to the matters mentioned in section 48(1).

(4) Before deciding whether to vary a heat network zone, the Scottish Ministers must consult—

(a) each local authority in whose area the heat network zone is situated,

(b) such other persons as they consider appropriate.

(5) Having had regard to the matters mentioned in section 48(1) and complied with the requirements under subsection (4), the Scottish Ministers may—

(a) vary the heat network zone, or

(b) decide not to vary the heat network zone.

(6) If the Scottish Ministers vary the heat network zone under subsection (5)(a), they must—

(a) identify the area of the heat network zone as varied in a document by reference to a map,

(b) specify in the document the day on which the variation takes effect, and

Local authorities acting jointly

Two or more local authorities acting jointly in relation to heat network zone

52

(1) Where an area proposed for designation as a heat network zone falls within the area of more than one local authority, each of the local authorities in whose area the proposed heat network zone would be situated may act jointly to—

(a) designate the area as a heat network zone under section 46(1),

(b) request under section 47(4)(b) that the Scottish Ministers consider whether to designate the area as a heat network zone.

(2) Where two or more local authorities have acted jointly by virtue of subsection (1)(a) to designate as a heat network zone an area falling within the area of each of the local authorities, the local authorities may act jointly to vary the heat network zone under section 50(1).

(3) Where two or more local authorities act jointly under subsection (1) or (2), references in sections 46, 48, 49, 50 and 51 to—

(a) a local authority are references to the local authorities acting jointly, and

(b) a local authority's area are references to the combined area of the local authorities.

Ministerial direction and guidance

Ministerial power of direction to designate or vary heat network zone

53

(1) The Scottish Ministers may direct a local authority to—

(a) designate such area in the area of the local authority as the Scottish Ministers consider appropriate as a heat network zone,

(b) vary a heat network zone situated in the area of the local authority in such manner as the Scottish Ministers consider appropriate.

(2) The Scottish Ministers may direct two or more local authorities to jointly designate such area falling within the areas of the local authorities as a heat network zone as the Scottish Ministers consider appropriate.

(3) Subsection (4) applies where—

(a) two or more local authorities have jointly designated an area as a heat network zone—

(i) under section 46(1), or

(ii) pursuant to a direction under subsection (2), or

(b) the Scottish Ministers have designated as a heat network zone under section 46(2) an area falling within the areas of two or more local authorities.

(4) The Scottish Ministers may direct the local authorities to jointly vary the heat network zone in such manner as the Scottish Ministers consider appropriate.

(5) Before issuing a direction under subsection (1), (2) or (4), the Scottish Ministers must—

(a) have regard to the matters mentioned in section 48(1), and

(b) consult—

(i) each local authority in whose area the heat network zone is, or would be, situated, and

(ii) such other persons as they consider appropriate.

(6) Section 48(4) applies to the designation of an area as a heat network zone pursuant to a direction under subsection (1) or (2) as it applies to the designation of a heat network zone under section 46(1).

(7) Section 50(5) applies to the variation of a heat network zone pursuant to a direction under subsection (1) as it applies to the variation of a heat network zone under subsection (1) of that section.

(8) Where two or more local authorities are acting jointly by virtue of subsection (2) or (4), section 48(4) or (as the case may be) section 50(5) applies jointly to the local authorities (but subject to the modification mentioned in subsection (9)).

(9) The modification is that references in those sections to a local authority are to be read as if they were references to the local authorities acting jointly.

(10) The Scottish Ministers may revise or revoke a direction under this section.

Guidance

54

(1) The Scottish Ministers may issue guidance about—

(a) reviews under section 47(1),

(b) the designation by local authorities of heat network zones,

(2) Guidance under subsection (1) may be addressed to—

(a) a local authority, or more than one local authority, identified in the guidance, or

(b) all local authorities.

(3) Before issuing guidance under subsection (1), the Scottish Ministers must consult—

(a) the local authorities to whom the guidance is to be addressed,

(b) the Scottish Fuel Poverty Advisory Panel, and

(4) Local authorities to whom guidance under subsection (1) is addressed must have regard to the guidance in exercising their functions under this Part.

(5) The Scottish Ministers must publish guidance issued under subsection (1) in such manner as they consider appropriate.

PART 4 — Heat network zone permits

Meaning of “permit authority”

55

In this Part, the “permit authority” means—

(a) the Scottish Ministers, or

(b) such other person as the Scottish Ministers may by regulations designate as the permit authority for the purposes of this Part.

Requirement for heat network zone permit

56

(1) The permit authority may by notice prohibit the operation of a heat network in such heat network zone as may be designated in the notice unless a heat network zone permit for the heat network zone is held by—

(a) the person operating the heat network, or

(b) the person on whose behalf the heat network is operated.

(2) But a notice under subsection (1) designating a heat network zone may not require a person who is entitled to operate a heat network in the heat network zone immediately before the day on which the notice takes effect to hold a heat network zone permit for the heat network zone in order to—

(a) operate the heat network, or

(b) permit another person to operate the heat network on their behalf.

(3) For the purposes of subsection (2), a person is entitled to operate a heat network if at that time the person—

(a) holds a heat network consent in relation to the operation of the heat network, or

(b) is exempt from the requirement to hold a heat network consent in relation to the operation of the heat network by virtue of regulations under section 19(1).

(4) But the permit authority may not issue a notice under subsection (1)—

(a) in such circumstances as may be specified,

(b) if any specified procedure has not been complied with.

(5) The permit authority may revoke a notice issued under subsection (1).

(6) But the permit authority may not revoke a notice issued under subsection (1)—

(a) in such circumstances as may be specified,

(b) if any specified procedure has not been complied with.

(7) The permit authority must—

(a) publish a notice issued under subsection (1), and

(b) give notice of the revocation of a notice issued under subsection (1),

in such form and manner as may be specified.

(8) In this section, “specified” means specified in regulations made by the Scottish Ministers.

(9) In this Part, a “heat network zone permit” is a permit issued by the permit authority.

Applications for heat network zone permit

57

(1) The Scottish Ministers may by regulations make provision for or about the process for inviting, making and determining applications for a heat network zone permit.

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

(a) how the permit authority is to invite applications for a heat network zone permit,

(b) persons who may apply for a heat network zone permit,

(d) the information (including the information in the form of a document) that must be included in an application for a heat network zone permit,

(e) publication or notification of applications for a heat network zone permit,

(f) publication or notification of the permit authority's decision whether or not to grant an application for a heat network zone permit,

(g) publication or notification of a heat network zone permit.

(3) Regulations under subsection (1) may make different provision for different heat network zones.

Heat network zone permit: duration

58

A heat network zone permit continues to have effect for the period specified in it unless it is revoked in accordance with section 59.

Heat network zone permit: revocation

59

(1) The permit authority may revoke a heat network zone permit held by a person—

(a) if the heat networks licence held by the person is revoked under section 11(1),

(b) if a heat network consent held by the person in relation to the operation of a heat network situated in the heat network zone to which the permit relates is revoked under section 27, or

(2) Before revoking a heat network zone permit under subsection (1), the permit authority must give notice of the proposed revocation to the person holding the permit.

(3) The notice must—

(a) state the reasons why the revocation 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) within which the person holding the permit may make representations about the proposed revocation to the permit authority.

(4) The Scottish Ministers may by regulations make further provision about the procedure to be followed in connection with the revocation of a heat network zone permit under subsection (1).

Appeals against revocation of heat network zone permit

60

(1) The Scottish Ministers may by regulations make provision for or about appeals against revocation of heat network zone permits.

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

(a) who may appeal,

(b) grounds of appeal,

(d) the information to be provided when making appeals,

(e) the procedure for determining appeals,

(f) who may determine appeals,

(g) how the determination of appeals is to be notified.

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

Compensation on revocation of heat network zone permit

61

(1) The Scottish Ministers may by regulations make provision for or about the payment of compensation to the person holding a heat network zone permit in consequence of the revocation of a heat network zone permit as mentioned in section 59(1)(c).

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

(a) the circumstances in which compensation is payable,

(b) the calculation of compensation,

(d) the review of decisions made under the regulations,

(e) appeals against decisions made under the regulations.

Enforcement of requirement for heat network zone permit

62

(1) Where a person operates a heat network in a heat network zone on their own behalf without holding a heat network zone permit for the heat network zone in contravention of a notice issued under section 56(1), the person commits an offence.

(2) Where a person operates a heat network in a heat network zone on behalf of another person and the other person does not hold a heat network zone permit for the heat network zone in contravention of a notice issued under section 56(1), the other person commits an offence.

(3) It is a defence for a person charged with an offence under subsection (1) or (2) to show that the person had a reasonable excuse for contravening the notice issued under section 56(1).

(4) A person who commits an offence under subsection (1) or (2) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum,

(b) on conviction on indictment, to a fine.

PART 5 — Building assessment reports

Building assessment reports

63

(1) A relevant person must prepare reports in relation to each non-domestic building in which the person has an interest.

(2) A report prepared under subsection (1) (a “building assessment report”) must set out, in relation to each non-domestic building covered by the report, an assessment of—

(a) the potential for the non-domestic building to be supplied with thermal energy by means of a heat network,

(b) the period for which any system providing thermal energy to the non-domestic building is expected to continue to operate effectively and efficiently.

(3) A building assessment report must—

(a) be prepared in the manner as may be specified, and

(b) at such intervals as may be specified.

(4) For the purposes of this section—

(a) a relevant person has an interest in a non-domestic building if—

(i) the relevant person has a right of ownership in the non-domestic building,

(ii) the relevant person has such other interest in the non-domestic building as may be specified,

(b) where more than one relevant person has a right of ownership, or other interest as may be specified by regulations under paragraph (a)(ii), in a non-domestic building, a building assessment report must be prepared by one of those persons.

(5) In this section, “specified” means specified in regulations made by the Scottish Ministers.

Exemptions from duty to prepare building assessment reports

64

(1) The Scottish Ministers may by regulations provide that the requirement imposed by section 63(1) does not apply to—

(a) specified relevant persons,

(b) relevant persons of a specified description.

(2) The Scottish Ministers may by regulations provide that the requirement under section 63(1) does not apply in relation to—

(a) specified non-domestic buildings,

(b) non-domestic buildings of a specified description.

(3) In this section, “specified” means specified in the regulations.

Notification of building assessment reports

65

As soon as reasonably practicable after preparing a building assessment report, a relevant person must—

(a) send the report to each local authority in whose area a non-domestic building to which the report relates is situated, and

(b) send a copy of the report to the Scottish Ministers.

Guidance about building assessment reports

66

(1) The Scottish Ministers may issue guidance about the preparation of building assessment reports.

(2) In preparing a building assessment report, a relevant person must have regard to any guidance issued under subsection (1).

(3) The Scottish Ministers must publish guidance issued under subsection (1) in such manner as they consider appropriate.

Interpretation of Part 5

67

In this Part—

“building assessment report” has the meaning given in section 63(2),

“non-domestic building” means a building other than a dwelling,

“relevant person” means—a Scottish public authority within the meaning of section 3(1)(a) of the Freedom of Information (Scotland) Act 2002,such other person, or person of such description, as the Scottish Ministers may specify by regulations.

PART 6 — Powers of licence holders

Compulsory acquisition of land

Compulsory acquisition of land by licence holder

68

(1) A licence holder may, with the authorisation of the Scottish Ministers, compulsorily acquire land that is required for the construction or operation of a heat network.

(2) Subsection (1) includes in particular the power to acquire—

(a) any right or interest in or over land,

(b) a servitude or other right in or over land by the creation of a new right.

(3) The Scottish Ministers must not authorise under subsection (1) any acquisition in relation to land which belongs to Her Majesty in right of Her private estates unless the appropriate authority consents to the acquisition.

(4) The Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 applies in relation to an acquisition under subsection (1) as if—

(a) this section were contained in an Act in force immediately before the commencement of that Act, and

(b) the licence holder were a local authority.

(5) 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.

(6) In subsection (3)—

(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) the “appropriate authority” means the person appointed by Her Majesty in writing under the Royal Sign Manual or, if no such appointment is made, the Scottish Ministers.

(7) In this Part, a “licence holder” means a person holding a heat networks licence.

Wayleave rights

Network wayleave right

69

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Heat Networks (Scotland) Act 2021

PART 1 — Heat networks licences

Introductory

Meaning of “heat network”

1

Requirement for heat networks licence

2

Exemptions from requirement for heat networks licence

3

Meaning of “licensing authority”

4

Heat networks licence applications

Heat networks licence applications

5

Conditions of heat networks licence

Heat networks licence standard conditions

6

Heat networks licence standard conditions: supplementary

7

Heat networks licence special conditions

8

Duration of heat networks licence

Period of effect of heat networks licence

9

Modification of heat networks licence

Modification of heat networks licence

10

Revocation of heat networks licence

Revocation of heat networks licence

11

Appeals against revocation of heat networks licence

12

Miscellaneous

Form and manner etc. of applications under Part 1

13

Regulations about determining applications under Part 1

14

Guidance for licensing authority

15

Register of heat networks licences

16

Interpretation of Part 1

17

PART 2 — Heat network consent

Introductory

Requirement for heat network consent

18

Exemptions from requirement for heat network consent

19

Designation of local authority as consent authority for the area of the local authority

20

Meaning of “appropriate consent authority”

21

Heat network consent applications

Heat network consent applications

22

Determining heat network consent applications

23

Heat network consent conditions or limitations

Heat network consent conditions or limitations

24

Transfer, modification and revocation of heat network consent

Transfer of heat network consent

25

Modification of heat network consent

26

Revocation of heat network consent

27

Appeals against notice of revocation given by local authority

28

Applications to local authorities: Ministerial powers of call-in, direction and appeal

Call-in of heat network consent applications etc. by the Scottish Ministers

29

Directions as to method of dealing with heat network consent applications etc. by local authorities

30

Appeals regarding applications for heat network consent etc. to local authorities

31

Compensation

Compensation on modification or revocation of heat network consent

32