The Residential Landlords Association (RLA) has offered advice
to HMO landlords affected by the new regulations affecting the provision of
heat and energy in shared housing.
A European Union directive on energy efficiency was updated in
2012. One of the key elements of energy efficiency is ensuring that those
people who are directly using energy can see what they are using and take steps
to reduce their usage. It is this that the directive is targeted at.
“As a result, the government passed The Heat Network (Metering
and Billing) Regulations 2014,” explains RLA policy director David Smith,
“These require that anyone providing heating, cooling, or hot water to someone
who is required to pay for it whether directly or by incorporation in their
rent must provide a metering system of some description to allow that person to
measure their use and provide thermostatic valves to allow for a degree of
control to be exercised by that user.”
The new regulations have caused a great deal of concern as the
cost of fitting all this in many HMO properties would be prohibitive. There is
an exemption to allow the changes not to be made where the cost is
disproportionate but it was not clear how it was to be applied. The situation
was further complicated by the wording of the EU directive which makes
reference to apartments, a concept that is not commonly used in Britain.
In order to help resolve the situation the National Measurement
and Regulation Office (NMRO), the body responsible for enforcing the new
regulations, has updated its guidance.
“The new guidance makes clear that the regulations do not apply unless the
energy user is in possession of a self-contained property which contains
sleeping, washing, and cooking areas. Any communal provision of washing and
cooking facilities will mean that the regulations will not apply,” said Smith,
“Therefore, the only landlords likely to be affected are those providing bedsit
accommodation. These landlords will need to consider the technical feasibility
and cost effectiveness of installing hot water meters, heat cost allocators,
and thermostatic radiator valves in each bedsit to allow measurement of the
amount of heat energy being supplied.”
If the landlord considers that it is not technically feasible or
financially viable to install these items, then they will need to repeat that
assessment every four years. Where a renovation or work is being planned that
will create bedsits then the regulations will also need to be considered and
metering is likely to be required. Affected landlords are also obligated to
notify the NMRO of their status along with specified information.
Practically, given that a thermostatic radiator valve costs less
than £10 it is likely that landlords will need to give serious consideration to
fitting these. Meters may be avoidable as these are more expensive.
Failure to comply with the regulations is an offence with an
unlimited fine.
The regulations come into force from 31 December 2015. Bedsit landlords
should make their notification to the NMRO promptly using the standard forms.
They should also fit thermostatic valves and undertake a written assessment of
cost if they do not propose to fit meters.
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