Regulation 56 Application of Part 2 of the Consumers, Estate Agents and Redress Act 2007 with modificationsI1I2I3

Part 2 of the Consumers, Estate Agents and Redress Act 2007 applies in relation to heat network consumers subject to the following modifications.

All authorised persons are to be considered regulated providers.

Each person who is a heat network consumer in relation to a relevant heat network is to be considered a relevant consumer in relation to an authorised person who carries on a regulated activity in relation to that network.

The GEMA is to be considered the relevant regulator in relation to all authorised persons.

Section 43(1) is to be read as if for “must” there were substituted “may” but regulations made by the Regulator by virtue of this paragraph may not take effect before the launch date.

The requirements of section 44(1) as applied by these Regulations may be satisfied by action taken before these Regulations are made.

The Secretary of State is to be taken to have—

An obligation imposed on an authorised person by virtue of section 43, 46 or 47 as applied by these Regulations is enforceable under Part 4 of these Regulations as a relevant requirement.

A person who is an authorised person by virtue of regulation 27 (deemed heat network authorisations) and is not a member of the Energy Ombudsman Scheme is bound by the Scheme Terms as if the person were a member from the date this paragraph comes into force.

Paragraph (9) ceases to have effect—

In this regulation—

• “the Energy Ombudsman Scheme” means the scheme under that name operated by Trust Alliance Group Limited (a company registered in England and Wales with company number 04351294);

• “a member”, in relation to the Energy Ombudsman Scheme as constituted by the Scheme Terms, means a “Participating Company” within the meaning of the Scheme Terms;

• F2“micro-business” means a business that—

  1. (a)

     consumes less than 247,000 kilowatt hours of heat per year; or

  2. (b)

     has fewer than 10 full-time equivalent employees and—

     1. (i)

        an annual turnover of £2 million or less; or

     2. (ii)

        a balance sheet total of £2 million or less;

• “the Scheme Terms” are the terms of the Energy Ombudsman Deed Poll^f1 read with the Terms of Reference: Energy Sector and the Membership Rules for Participating Companies^f2 as they have effect when these Regulations are made.

• F3“small business” means a business other than a micro-business that—

  1. (a)

     consumes less than 420,000 kilowatt hours of heat per year; or

  2. (b)

     has fewer than 50 full-time equivalent employees and—

     1. (i)

        an annual turnover of £6.5 million or less; or

     2. (ii)

        a balance sheet total of £5 million or less.

For the purpose of this regulation, the number of full-time equivalent employees of a business must be calculated by taking the number of full-time employees and adding, for each employee who is not a full-time employee, such fraction as is reasonable.