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The Heat Network Compliance Companion Playbook for Property Managers

Getting You Ready for Ofgem’s New Heat Network Rules

Heat networks are now regulated.
That changes everything.

With Ofgem appointed as the heat network regulator under the Energy Act 2023, property managers, operators and suppliers are entering a new era of formal oversight, defined responsibilities, and enforceable standards. Heat network compliance is now a formal regulatory responsibility.

The Heat Network Compliance Playbook is a practical guide designed to help senior property managers, operations teams and compliance leads understand what’s changed, what’s coming next, and how to stay compliant without losing control of cost, performance or resident experience.

This page gives you a clear overview of what heat network compliance really means, and how to navigate it confidently.

Ofgem heat network regulation under the Energy Act 2023.

THE BACKGROUND

Why Heat Networks Are Now Regulated

Heat networks were historically unregulated, despite serving thousands of residents with no alternative choice of supplier.

That has changed.

Under the Energy Act 2023:

• Ofgem has been appointed as the regulator for heat networks
• Suppliers and operators must meet defined Authorisation Conditions
• Consumer protection, transparency and performance are now enforceable
• Non-compliance will carry regulatory and financial consequences

For property managers, this is no longer a “technical issue”. It’s a governance, reputational and operational responsibility.

The Four Pillars of Heat Network Compliance

Successful compliance is not about ticking boxes.
It relies on four connected pillars working together.

Meter It.

Meeting heat network metering requirements is essential for fair billing. Accurate, reliable metering underpins everything:

• Fair billing
• Performance monitoring
• Regulatory reporting
• Resident trust

You can’t manage what you can’t measure. Poor data quality is one of the biggest compliance risks for heat networks today.

Bill It.

Billing must now be:

• Transparent
• Understandable
• Justifiable
• Based on accurate data (actual reads)
• Quarterly

Ofgem and heat network billing regulations place new expectations on transparency and a real emphasis on fairness and clarity for end users, not just system capability.

Maintain It.

Heat networks fall within wider building safety and asset management responsibilities.

Maintenance is no longer just about uptime. You need to ensure your maintenance and reporting covers:

  • Legal obligations: compliance with health & safety legislation, metering & billing regulations, and Ofgem oversight

  • Golden Thread: maintenance creates the evidence base regulators and residents will rely on

  • Efficiency & cost control: poorly maintained systems waste energy and inflate bills

  • Resident trust: transparent records and rapid response to issues build confidence

  • Risk management: avoid fines, reputational damage, and costly emergency repairs

It’s about demonstrating control, competence, compliance and accountability across the lifecycle of the system, while balancing resident expectations and costs.

Manage It.

Real-time insights and regular reporting can transform heat network management – giving you visibility, confidence and control.

Continuous monitoring helps you:

• Spot inefficiencies before they escalate into costly failures
• Benchmark performance across multiple sites
• Track compliance against HNTAS KPIs
• Reduce avoidable callouts and disruption
• Build trust through transparency and data-led decision-making

This includes alignment with frameworks such as HNTAS and preparation for future enforcement.

 

Man facing maze wall representing the heat network regulatory journey

About Data Energy

KEY MILESTONES

The Regulatory Journey: From Now to Enforcement 

Heat network regulation is being introduced in phases.

Key milestones include:

• Deemed authorisation
• Formal registration and reporting
• Ongoing compliance monitoring
• Enforcement and penalties for non-compliance

Understanding where you are on this journey is critical. Waiting until enforcement begins is a high-risk strategy.

JUST RELEASED

The 25 Authorisation Conditions:  Explained

The Heat Network Market Framework Regulations (HNMFR) introduce 25 Authorisation Conditions that all heat network suppliers and operators must meet.

They set clear requirements for behaviour, transparency and governance. These are not optional best practice – they are conditions of authorisation.

We’ve created a practical summary that brings all 25 conditions together in one clear reference for operators and property managers – to help keep your buildings safe, compliant and future-ready.

The 25 Authorisation Conditions under Ofgem’s Heat Network Market Framework Regulations - the complete summary

Key Milestones: Ofgem & DESNZ Timeline

Ofgem's heat network compliance timeline from authorisation to enforcement

Common Compliance Risks for Property Managers

From our experience, the biggest risks include:

• Incomplete or missing handover information
• Unclear supplier and operator responsibilities
• Inaccurate or unreliable metering data
• Legacy billing structures that don’t meet new expectations
• Limited visibility of plant performance
• Reactive rather than planned maintenance

These issues are common, but they are solvable with the right approach.

Who this Compliance Companion is for

This guide is designed for:

• Senior Property Managers responsible for residential portfolios
• Operations teams overseeing heat network performance
• Compliance leads managing regulatory risk
• Managing agents acting on behalf of heat network suppliers or operators

For property manager heat networks, compliance is no longer optional. If you are involved in decision-making, contractor management, billing oversight or resident communication, this applies to you.

FAQs

What is heat network compliance?

Heat network compliance is the process of meeting the legal, technical and consumer protection requirements that apply to heat networks under the Energy Act 2023 and Ofgem regulation. This includes obligations around metering accuracy, billing transparency, maintenance, performance monitoring and communication with residents.

Are heat networks now regulated?

Yes. Heat networks in England and Wales are now regulated under the Energy Act 2023, with Ofgem appointed as the regulator. Regulation is being introduced in phases, with full enforcement expected from January 2027.

Who is responsible for heat network compliance?

Primary responsibility sits with the heat network supplier and operator. However, property managers often have significant oversight responsibilities, including appointing contractors, reviewing performance, managing billing processes and communicating with residents.

What is heat network authorisation?

Heat network authorisation is the process by which suppliers and operators are approved by Ofgem to operate legally. Authorisation comes with conditions that must be met on an ongoing basis, not just at the point of application.

What are the main compliance risks for property managers?

Common compliance risks include poor-quality metering data, unclear roles and responsibilities, incomplete handover information, legacy billing structures, limited performance monitoring and inadequate record keeping.

Does the Building Safety Act apply to heat networks?

Yes. Heat networks form part of a building’s wider systems. Maintenance, safety management, competence and record-keeping obligations under the Building Safety Act may apply, particularly in higher-risk residential buildings.

What is HNTAS?

HNTAS stands for the Heat Network Technical Assurance Scheme. It sets standards for the technical performance of heat networks and is closely aligned with regulatory expectations around efficiency, reliability and consumer protection.

How can property managers prepare for heat network regulation?

Property managers can prepare by understanding their role, reviewing metering and billing data quality, assessing maintenance records, identifying gaps in handover information and putting structured oversight arrangements in place.

Where can I find practical guidance on heat network compliance?

The Heat Network Compliance Companion Playbook provides practical guidance, explanations and tools to help property managers, operations teams and compliance leads navigate regulation confidently.

JUST UPDATED

What’s Inside The Heat Network Compliance Companion Playbook

The full Playbook covers:

• The regulatory framework in plain English
• Roles, responsibilities and accountability
• Handover requirements and common gaps
• Metering and billing best practice
• Maintenance and safety considerations
• Performance monitoring and KPIs
• Tariffs and cost transparency
• The resident experience
• Practical tools, checklists and guidance
 

Practical Next Steps

If you do nothing else:

1. Understand whether you are acting as a supplier, operator, or both
2. Review the quality of your metering and billing data
3. Assess whether your maintenance records would stand up to scrutiny
4. Identify gaps in handover information
5. Put a plan in place now, not later

The Compliance Companion Playbook is designed to help you do exactly that.

Compliance Insights + Analysis

Our experts regularly break down what the regulations really mean in practice – and what to watch out for:

Resources

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