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Clean energy law firm, Lux Nova Partners, a member of the Triple Point Heat Networks Investment Management, has drafted a suite of template heat contracts for use by anyone involved in a district heating scheme. We are undertaking a short, open consultation to take feedback from any interested stakeholders on drafts of the template contracts before launching “final” versions by the end of the year.  Whilst the work was commissioned by BEIS, the contracts are not endorsed in any way by BEIS. The template contracts will require tailoring to any particular project but they are intended to provide a useful and advanced starting point to contract creation and negotiation, with helpful drafting notes included.  The aim is that publication of template contracts will help to raise standards and reduce the costs associated with developing, or funding, district heating schemes.

We are seeking your views on set of contract template heat contracts agreed with BEIS, covering:

  • delivery of district heating infrastructure;
  • operation and maintenance of that infrastructure;
  • connection and adoption to heat networks;
  • energy off-take;
  • lease of energy centre/plant room and easement for pipes; and
  • use of heat pipes (unbundled pipe business)

Note: the suite of contracts does not cover project ownership or partnership models.

Templates

An explanatory note can be found here and a recording of the consultation webinar can be viewed here

Questions on which we are seeking feedback:

  1. Do you feel that the publication of template heat contracts will be of benefit to project developers and potential funders?
  2. Do you feel that these template heat contracts provide a useful basis from which to build project-tailored documentation?
  3. Do you feel that the risk allocation captured in them is sufficiently balanced, as between the interests of one party compared to the other?
  4. Do you feel that there is any major issue that is not adequately addressed or that the way it is addressed is wrong or should be improved?
  5. How would you like to see these template contracts be used?
  6. How would you like to see these template contracts evolve?

Any other comments on the template contracts are welcome. In providing your answers to the above questions or any other comments, please try to be as specific as possible and explain your answers as fully as possible so that we can take them into account. Please send us your comments by 17th November 2019 to: consult@luxnovapartners.com

 

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