Local Authorities are crucial to the government’s plans to expand the use if district energy in the UK. They own ESCOs, provide anchor loads, deal with planning and highways permissions for construction, procure heat networks and are likely to soon be involved in establishing heat network zones.
All of this is set against the backdrop of the multiple other roles and responsibilities that Local Authorities have, and within the context of Local Government Reorganisation
Our experienced teams work alongside Local Authorities to support the integration of heat networks projects within wider portfolios.
Our Points of Connection service provides free information for Local Authorities who have, or are considering heat networks, and focuses, not only on district energy but also on the nexus between this and other Local Authority spheres of influence and interest
District Energy: Points of Connection
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District energy projects – corporate structuring considerations for local authorities
Our approach
We have been advising a London Borough Council in procurement and delivery of its district energy network on two separate regeneration schemes.
We advised from OBC through to commercialisation, including the procurement strategy and documentation for DBOM and metering and billing arrangements and the procurement of an iDNO solution and associated adoption agreements.
Our work on the project also included contracts for heat supply, DBOM, M&B, and various forms of connection and supply agreements.
We advised the Council on the available models under which to deliver its project (including direct delivery or use of a corporate structure). This required analysis of the Council’s vires and the benefits and risks of each potential model. We also advised on the extent to which a special purpose vehicle may be able to benefit from statutory powers. Working closely with the project team we developed a set of recommendations which we presented to the relevant stakeholders within the Council.
We worked to facilitate a simplified property structure and provided property advice including drafting / negotiating chains of easements and consideration of the physical separation of servient land from the benefiting dominant tenement.
We also provided data protection / information law advice to the Council in relation to the appointed DBOM contractor accessing personal data about customers on the heat network.

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