SIC 35.30 30 enterprises in the UK
Steam and air conditioning supply
What this covers (11 activity descriptions)
- Chilled water for cooling purposes production and distribution
- Community heating plant
- Compressed air production and distribution
- Hot water production and distribution
- Hydraulic power production and distribution
- Ice (for human consumption)
- Ice (not for human consumption)
- Production and distribution of cooled air
- Production of ice for cooling purposes (manufacture)
- Production of ice for food (manufacture)
- Steam production
What you must comply with
Unique to steam and air conditioning supply
Heat network operator authorisation (Energy Act 2023)
The Energy Act 2023 introduces a new regulatory framework for heat networks (district heating and cooling), including mandatory authorisation from Ofgem for heat network operators and consumer protection obligations. Implementation is being phased in from 2024 onwards. Ofgem and the Competition and Markets Authority (CMA) are joint regulators. Operators must meet technical and financial fitness criteria and comply with the new Heat Network (Metering and Billing) Regulations.
Building Regulations 2010 — Part L (conservation of fuel and power)
Steam and heat supply plant, including boiler rooms and combined heat and power (CHP) plant, must comply with Building Regulations Part L requirements when installed in or connected to buildings in England. Separate but equivalent regulations apply in Wales (Part L), Scotland (Section 6), and Northern Ireland (Part F). Building control notification is required for notifiable works.
F-gas handling certification
Applies to air conditioning supply systems and cooling plant containing fluorinated greenhouse gases (F-gases). The company must hold a company certificate; individual engineers must hold a personal certificate. Certification obtained from a UK F-gas certification body. Leakage checking and record-keeping requirements apply based on the system's CO2-equivalent charge.
Energy Savings Opportunity Scheme (ESOS) assessment
Applies to large undertakings (250+ employees OR turnover >€50 million AND balance sheet >€43 million). Steam and air conditioning supply businesses meeting these thresholds must carry out energy audits of buildings, transport, and industrial processes every four years and notify the Environment Agency. Phase 3 compliance deadline was December 2023; Phase 4 deadline is December 2027.
Pressure Systems Safety Regulations 2000
Steam generation and distribution systems are pressure systems within scope of the PSSR 2000. Operators must have a Written Scheme of Examination produced by a competent person; vessels and pipework must be examined at prescribed intervals by an Inspection Body. Records of inspections must be maintained. Relevant for any steam supply boiler, pressure vessel, or high-pressure steam distribution main.
CHP Quality Assurance (CHPQA) certification
Combined Heat and Power (CHP) plant operators wishing to claim Good Quality CHP status (required for Climate Change Levy exemptions and enhanced capital allowances) must register with the CHPQA Programme administered by DESNZ. Annual evidence submission required. Good Quality CHP must achieve the minimum Quality Index (QI) threshold (currently QI ≥ 100 for new plant).
Applies to all steam and air conditioning supply
Health and Safety at Work etc. Act 1974
General duties to employees and others. Particularly significant in the energy sector given major hazard risks. HSENI enforces in Northern Ireland.
Employers' Liability Insurance
Required for all employers. Sole traders with no employees exempt.
Environmental Permitting (England and Wales) Regulations 2016
Required for activities with emissions to air, water, or land. Equivalent regime in Scotland (SEPA under Pollution Prevention and Control (Scotland) Regulations 2012), Wales (NRW), and Northern Ireland (NIEA). Large combustion plant operators require specific IED permits.
UK Emissions Trading Scheme — surrender and reporting
Applies to installations above the ETS threshold (generally >20 MW thermal input). Operators must monitor emissions, submit verified annual report, and surrender allowances by 30 April each year. SEPA administers in Scotland; NRW in Wales. Northern Ireland participates separately.
Control of Major Accident Hazards (COMAH) Regulations 2015
Applies to energy sites holding dangerous substances (liquefied natural gas, hydrogen, flammable gases) above threshold quantities. Lower-tier sites must notify the competent authority and produce a major accident prevention policy; upper-tier sites must also produce a safety report and emergency plan.
Guidance for this activity
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