Supply agreement for combined heat and power systems

By Melissa Barker

It is a common feature with new developments that combined heat and power systems may be included.

These supply heat, hot water, cold water, electricity and other utilities to individual properties on a site or across neighbourhood sites, but from one centralised plant.

If these are large enough, they can require long-term utility supply operation and an agreement with a specific supplier. Developers must be careful about entering into supply contracts for combined heat and power systems in case they fall foul of the consultation provisions contained in section 20 of the Landlord and Tenant Act 1985…

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