Who is to Bear the Cost of HNTAS Compliance?

Should the Heat Networks Technical Assurance Scheme (HNTAS) be introduced, who would be responsible for bearing the costs to comply? This will depend on how cost recovery is allocated within existing operational and supply contracts.

For non-ESCO agreements full financial liability may sit with the asset owner or it may be possible for costs to be passed through to customers via service charges.

Where an ESCO is in place, contracts – particularly change in law clauses – will need to be examined to determine how costs should be allocated between the asset owner, the ESCO and customers. Asset owners should engage with the HNTAS consultation process and plan ahead to manage the financial risks of compliance.