Heating and cooling

Decentralised energy has become a more common feature of developments in the UK and internationally. We advise on district and communal heating projects in the UK market, including long-term concessions, connections to heat networks and outsourced services. We also advise on large-scale district cooling schemes in the Middle East, including residential and industrial cooling arrangements.

We advise on the full suite of contractual documentation for heat and cooling, including long-term concession agreements, energy-specific development obligations, services agreements (including operation and maintenance, billing, fuel purchase and tariff setting) and customer supply agreements. We provide early advice on phasing and procurement, risk management exercises, tariff structures and management of negotiations through to finalisation of contracts. In the UK we have advised on schemes with all the key ESCO providers, including SSE, Veolia, E.ON and Engie.

We understand the importance of early engagement for the successful structuring of district utilities arrangements. Our experience in the district utilities sector (including large scale ESCO/MUSCO contracts, medium term ‘hybrid’ or CEM schemes and outsourced landlord services) means we are well placed to provide reliable advice on the market position at all key points during negotiations.

Cost recovery remains an important part of any heating and cooling scheme. In the UK market we advise on the key statutory provisions, including legislation relating to service charge recovery and statutory consultation. We also provide properly joined-up advice on concession contracts and related property issues, including energy centre leases, easements and the required wording for residential and commercial leases.

As the heat and cooling market remains unregulated in the UK, it is important that any contractual arrangements strike an acceptable risk balance. Our sector experience helps clients navigate these complex contractual arrangements.

In brief

  • We advise on a range of district utilities projects in the UK and internationally
  • In the UK market we have advised on district heating concessions with all the key providers, including SSE, Veolia, E.ON and Engie
  • We advise on all the key statutory provisions including legislation relating to service charge recovery and statutory consultation   
  • We provide joined-up advice on concession contracts and related property issues


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