(1) In this Act, a “ heat network ” means—
(a) a district heat network, or
(b) a communal heating system.
(2) A district heat network is a network by which thermal energy is distributed from one or more sources of production to more than one building.
(3) A communal heating system is a system by which thermal energy is distributed from one or more sources of production to one building comprising more than one building unit.
(4) For the purposes of subsection (2) or (3), where the main purpose of a source of production is to provide thermal energy to a district heat network or (as the case may be) a communal heating system, the source of production forms part of the district heat network or (as the case may be) the communal heating system.
(5) In this Act, “ thermal energy ” means heating, cooling or hot water.
(6) In subsection (3), “ building unit ” means part of a building that is designed or altered to be used separately.
(7) The Scottish Ministers may by regulations—
(a) modify the meaning in this section of “heat network”, “district heat network”, “communal heating system” or “thermal energy”,
(b) further define the meaning of any of those terms.
Section 2
2. Requirement for heat networks licence S
(1) A person must not supply thermal energy by means of a heat network unless the person holds a heat networks licence.
(2) A person who contravenes subsection (1) commits an offence.
(3) It is a defence for a person charged with an offence under subsection (2) to show that the person had a reasonable excuse for contravening subsection (1).
(4) A person who commits an offence under subsection (2) is liable—
(a) on summary conviction, to a fine not exceeding the statutory maximum,
(b) on conviction on indictment, to a fine.
(5) In this Act, “ heat networks licence ” means a heat networks licence issued under section 5(5).
