Multi-Occupancy Buildings & Meter Banks Explained

For those who have just bought, moved into, or started renting a commercial space, you might have encountered two new terms: multi-occupancy buildings and meter banks.

Understanding these concepts is essential for anyone who can associate with the individuals listed above. It will also help with safety, energy efficiency, and compliance with gas and utility regulations.

In March 2022, major industry-standard changes were made to the Industry Standard Institution of Gas Engineers and Managers (IGEM)/G/5 Edition 3 Gas in multi-occupancy buildings.

Property owners and residents must adhere to this standard, as well as many other established legal requirements.

Otherwise, you could face the following:

• Legal implications
• Safety risks
• Financial repercussions (if you don’t identify the issues before agreeing to a purchase)
• And damage to a reputation as a landlord or developer if you spring your non-compliance status on them.

Before we discuss the details of the industry Standard IGEM/G/5 Edition 3 Gas in multi-occupancy buildings, let’s define what a multi-occupancy building is.

What Are Multi-Occupancy Buildings?

If you live, work or are a landlord of a property that shares a building with other residents, workers, or colleagues, your home or workplace is a multi-occupied building.

Examples of multi-occupancy buildings include:

• Apartments, double storey-flats, student housing, or Houses in Multiple Occupations (HMOs)
• Office blocks, shared workspaces, shopping centres, or retail complexes
• And mixed-use properties which combine residential and commercial units

Usually, in multi-occupancy buildings, each unit functions independently, with its own access, utilities, and rental agreements.

But what are meter banks?

What Are Meter Banks?

In buildings housing multiple residences or businesses, it is essential to have a centralised location for accessing and monitoring all utility meters. A meter bank monitors the amount of utilities being provided to individual property. These utilities include:

• Electricity
• Water
• Gas

These meter banks are typically located in a utility cupboard (think a cupboard in a passageway) or an external weatherproof box.

A meter bank will typically feature:

• Individual meters that are assigned to an individual flat or property
• Distribution boards which allocate different utilities from a central supply to individual flats and properties
• And the main supply connections

Now that we know the basic terms, why are meter banks used in the UK in multi-occupied properties?

Why Are Meter Banks Installed In Multi-occupied Properties?

As you can imagine, meter banks in multi-occupied properties play a significant role in managing the efficiency of utilities throughout a building.

However, there are numerous reasons why meter banks are essential:

Accurate Billing

As mentioned, every property will have its utility meter in the larger bank. Allocating a meter to individual units ensures accurate billing for property owners.

Also, by having meters alongside each other, residents’ usage is entirely transparent about how much others are using and whether their bills are irregular due to a fault, for example, a water leak.

Simplifying Maintenance, Management, And More

Having a centralised bank where a building manager can quickly review all the meters in one spot means it automatically streamlines inspections, invoicing, and maintenance.

As mentioned, it also helps Gas Safe registered engineers identify if there is an isolated issue at an individual unit within the building.

Other significant reasons for why meter banks are installed in multi-occupied properties include:

• They are compact compared to having separate meters installed throughout the building
• Are required to be installed in accessible places
• Make it easy to use when a Gas Safe registered engineer needs to work on the system
• Encourages conscious usage between residents due to competition
• And it allows for easy integration of smart technology

However, one of the fundamental reasons you need a meter bank in a multi-occupied building is that it is legally required.

Failure to meet your meter bank’s legal requirements could be financially damaging. Just violating the gas safety regulation can result in a fine of up to £6,000 per breach or imprisonment.

So, read carefully.

Legal And Regulatory Compliance Requirements

While meter banks make life easier for building managers or a Gas Safe registered engineer, they’re not just practical but are required by law in the UK.

As a resident or landlord, you ensure that your building’s meter bank complies with multiple utility regulations.

These include:

Complying With Utility Regulations

With numerous utility feeds coming into the building at a share point, you can correctly assume that many specific regulations must be followed.

But for now, we’ll just highlight that one of the main reasons for complying with utility regulations is consumer rights and access to accurate billing.

According to the Consumer Rights Act 2015, the statute highlights a consumer’s rights to certain principles, which are:

• Fairness
• Transparency
• And reasonable care/safety

While it doesn’t explicitly refer to a need for individual metering in a multi-occupied building, numerous other legislations, local regulations, and council requirements do.

Specific Legislations About Meter Banks

As mentioned, there are multiple legal requirements laid out in specific acts and regulations. However, we’re only going to refer to a few of these legislations, which are the following:

Gas Safety (Installation and Use) Regulations 1998 (GSIUR)

The GSIUR comprehensively states the regulations that your building’s gas installation must meet to ensure its safety and functionality.

However, to simplify the GSIUR’s requirements for your building’s meter bank, it must be installed securely within a specific housing while being accessible for inspection.

Accessibility is a crucial legal element.

Heat Network (Metering and Billing) Regulations 2014 (as amended)

When we mentioned residents have a right to an individual meter, however it is not explicitly mentioned in the Consumer Rights Act 2015; they are in Heat Network (Metering and Billing) Regulations 2014 (as amended).

The Heat Network (Metering and Billing) Regulations 2014 also applies to all buildings with a communal heating system or a district heating network. If a property does not have individual meters, landlords and property managers are legally required to install one.

The Water Industry Act 1991 states that residents must have access to individual meters to read their water bills clearly.

Electricity and Gas (Internal Markets) Regulations 2011

The Electricity and Gas (Internal Markets) Regulations 2011 is a comprehensive regulation that encourages transparent metering and billing systems.

It also allows consumers to review whether or not they should change energy providers.

Building Regulations 2010 (UK)

Another factor to consider about your building’s centralised meter bank is its compliance with building regulations.

These regulations stipulate several requirements, including:

• The meter bank is housed correctly
• Is protected
• And is accessible

There are also provisions for fire safety that will help prevent hazards like gas leaks.

Meeting HMO Licensing Requirements

An HMO is a property rented out to at least three individuals who are not from the same household (or are financially independent individuals). These tenants must share bathroom, kitchen, and toilet facilities.

There are different types of HMOs, which include:

• Bedsits or shared houses
• Flats with separate rooms but shared facilities
• Hostels or lodging accommodations

Landlords need to possess a valid license from a local council for specific HMO properties (usually larger ones). These licenses are only valid for five years, and to apply for one as a landlord, your HMO property must meet certain conditions, such as a centralised meter bank for the inhabitants.

As a new landlord of an HMO property, getting a license is a steep learning curve. Make sure to contact a local expert to guide you through all the council requirements.

Otherwise, you can lose your licensing for your HMO property.

Heath And Safety Executive Requirements (HSE)

As expected, HSE has certain requirements that need to be met with a building’s meter banks. These requirements state that gas and electrical systems need to be regularly inspected.

They also clarify that the meter banks must be easily accessible and securely installed. Regarding security, the HSE also wants landlords to reduce the risk of tampering with the meters and illegal connections.

The last legal requirement is all about the environment.

Environmental And Sustainability Goals

We’ve spoken about the UK’s promise to achieve net zero emissions. The main promises the government is planning to deliver are phasing out the installation of new natural gas boilers by 2035 and achieving Net Zero (no heating emissions) by 2050.

For landlords, Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 requires them to improve the energy efficiency of their properties, which includes:

• Meter banks
• Integrating smart metering
• And support compliance by enabling tenants to monitor energy usage.

Now that we’ve gone over the established requirements for multi-occupancy buildings and their meter banks, what changes do you need to be aware of with Industry Standard IGEM/G/5 Edition 3 Gas in multi-occupancy buildings?

Changes To Be Aware Of With Industry Standard IGEM/G/5 Edition 3 Gas In Multi-Occupancy Buildings

In February 2022, the Institution of Gas Engineers and Managers (IGEM) released their new industry standards for multi-occupancy buildings. There were several new updates that all Gas Safe registered engineers need to know and follow. These include:

• Revised risk hierarchy for building types
• Updated figures and illustrations (for piping and installation)
• Clarified responsibilities
• Enhanced inspection requirements
• Material standards and competence
• And improved record-keeping

For landlords, ensuring that your property meets the new industry standards by IGEM is vital. As mentioned, if anything goes wrong with your property, you could face being fined, jail time, or voiding your building insurance policy.

Rather than experiencing multiple sleepless nights, why not get your property inspected by a knowledgeable, local Gas Safe registered engineer?

Get A Gas Safety Certificate (CP12) With WarmZilla

As a landlord, you know having a valid annual Gas Safety Certificate (CP12) is a legal requirement.

WarmZilla can promise to have an engineer at your property’s door within 48 hours across England, Scotland, and Wales.