BILL IT
Heat Network Billing

This section shows how accurate metering and transparent billing form the foundation of compliance - and the importance of data.

Why Billing Matters

Billing residents is about more than cost recovery. A core part of the current regulation and expected new regulation is transparency to residents. This starts with a simple bill. Having bills sent out regularly to residents, based on the data you’re collecting, and a tariff you’ve set is the most basic way to demonstrate what they are paying for.

Operating a heat network and supplying heat to residents costs money, not just paying the main utility supplier but recovering costs of your, or your billing agent’s, services, data collection costs and maintaining the network. Billing is the mechanism you can use to help residents clearly see what they are paying for.

Checklist

Consumer Protection Billing Requirements:

✓ Quarterly Billing

✓ To an actual meter reading (where available)

✓ Clearly show the bill total and how it was calculated

✓ Information on complaints

✓ Clear signposting to third parties like Citizen Advice

How Billing Works:

Once data is collected, the billing can commence.

Calculate & Approve	You, or your billing agent, need to calculate how much each consumer owes, based on a tariff you’ve set and the data you’ve collected. If you’re using a billing agent, you should have final approval on billing before it’s sent out.
Notify & Collect	Send the bills out and then follow up with anyone who hasn’t paid by the due date. Make sure you have a team in place to handle queries from residents and debt management.
Report & Settle	Put together (or have your billing agent provide) a report of the funds collected in the billing period and then use these to pay your utility provider, billing agent and data collection fees. If you’ve included things like HIU servicing in your tariff, be sure to set this money aside for the annual maintenance payment.

NEW: Essential Billing Compliance

Billing & Transparency

Bills must be accurate, clear, and based on correct consumption data. Price transparency is mandatory.

Bills must be based on actual consumption wherever possible.

If supply meters are installed, monthly billing is suggested as the reasonable practice
Billing should be quarterly at a minimum where electronic
Billing information should be issued at least twice a year with every bill issued.

Estimates can be used if no reading can be obtained after all reasonable steps are taken.

Bills must be issued to an actual meter reading at least once a year.

Do not need to meet these requirements if

supported housing, alms-house accommodation or purpose-built student accommodation; or any premises that is subject to a leasehold interest where
the lease: began before 27th November 2020 contains a provision which would prevent Billing based on actual consumption.

Billing Information Checklist

Basic Billing Details

☐ Name and contact details of the supplier

☐ Billing period covered

☐ Date the bill was issued

Consumption Data

☐ Consumer’s heat consumption for the billing period

☐ Units clearly stated (e.g., kWh, MWh)

☐ Historic consumption available on request (referenced on the bill)

Charges

☐ Total amount due

☐ Breakdown of charges (e.g., unit charges, standing charges)

☐ Any other goods/services charged separately

Download Full Checklist

Quick Poll

What’s the most important aspect of billing?

Data
Tariffs
Transparency
Cost Recovery