7. Heat Network Relief
General principles
In its final report of the Business Rates Review published in October 2021, the Government announced a 100% relief for eligible low-carbon heat networks that have their own rating assessment from 1 April 2023. The relief is intended to be for those networks generating from a low carbon source to ensure the policy supports decarbonization.
Subject to the passing of legislation, this relief will be delivered in 2023/24 using existing local government discretionary powers. From financial year 2024/25 the relief is mandatory.
Heat networks take heat of cooling from a central source(s) and deliver it to a variety of different customers such as public buildings, shops, offices, hospitals, universities and homes. By supplying multiple buildings, they avoid the need for individual boilers or electric heaters in every building. Heat networks have the potential to reduce bills, support local regeneration and be a cost-effective way of reducing carbon emissions from heating. Heat networks play an important role in decarbonizing heat and support delivery of net zero commitments. They are uniquely able to unlock otherwise inaccessible large-scale renewable and recovered heat sources such as waste heat and heat from rivers and mines.
Key criteria
In order to be eligible the property must be:
- Wholly or mainly used for the purposes of a heat network, and
- The heat is over the next 12 months expected to be generated from a low carbon source (irrespective of whether that source is located on the Property or on a different Property.)
- Subject Subsidy Control limits
7.2 Claiming Heat Network Relief
There is no application form. Applicants should apply for the relief in writing to the Business Rates Team confirming they satisfy each of the eligibility criteria.
7.3 Maximum award
The total amount of Government funded relief available for each eligible Property under this scheme is 100% of the net bill in year 2023/24. The relief is applied after mandatory reliefs have been applied but before any other discretionary reliefs have been applied.
7.4 Notification
Where the application is successful, a revised bill will be issued. Where the application is not successful, the notification will provide full reasons for the decision and confirm the applicant’s rights to request a review of the decision.
7.5 Requirement to make payment of amounts falling due
Ratepayers must continue to pay any amount of business rate that falls due pending the outcome of an application. The Council may apply its normal recovery procedures in cases where payments are not received.