Upcoming Heat Network Regulations: What They Mean for You

 

The landscape of heat networks in the UK is about to change significantly, with new regulations aiming to improve consumer protection, ensure fair pricing and set high standards for operators.

These changes, driven by Ofgem and DESNZ (the Department for Energy Security and Net Zero), are set to roll out over the next few years, bringing heat networks in line with the standards seen in gas and electricity sectors.

Here’s a straightforward breakdown of what’s coming and how we can help you navigate these changes with confidence.

We understand how complex and time-consuming it can be to sift through all the regulatory information, so we’re here to make it easier for you. We’ll regularly analyse the latest updates and provide simplified, actionable insights through podcasts, webinars, articles and guides.

Our goal is to give property managers the clarity and confidence they need to focus on their day-to-day responsibilities, knowing they have an expert guide by their side every step of the way.

 

Key Dates to Watch

The journey to fully regulated heat networks is already underway, with several key milestones:

30th January 2025:

• Consultations close for feedback on proposed regulations.

April 2025:

• Introduction of consumer protections, such as advocacy and advice through Citizens Advice or Consumer Scotland.
• Launch of consumer redress services via the Energy Ombudsman.
• Operators must begin registering for authorisation.

January 2026:

• Ofgem Heat Network regulation commences.
• Authorisation conditions for operators will take effect.

January 2027:

• Detailed rules on pricing, service standards, and other key areas will be enforced, based on data gathered during the transition.

What This Means for Consumers

The primary goal of these regulations is to protect consumers and build confidence in heat networks by ensuring they are fair, transparent, and reliable.

Main priorities include:

• Fair pricing: Clear and reasonable charges for heat.
• Transparent billing: Easy-to-understand bills with no surprises.
• Support for vulnerable groups: Special protections for those covered under the Equality Act 2010.
• Reliable service: Operators must ensure consistent heat supply.

These protections are tailored to the unique nature of heat networks but align with values already established in the gas and electricity sectors. For residents, this will mean greater peace of mind and trust in their heat network provider.

For Operators: New Rules to Follow

Regulatory Oversight: Summary of Main Aims

This consultation outlines 9 key areas of consultation regarding the activities needing authorisation and the roles and obligations of regulated entities such as Heat Suppliers and other key stakeholders.

It covers the scope of authorisations, including initial automatic authorisations requiring registration and later applications for new activities.

Heat network operators will face increased scrutiny under a new 20-point charter covering:

• Fair pricing and billing practices.
• Standards for supply reliability and complaint handling.
• Compliance with technical standards set by the Heat Network Technical Assurance Scheme (HNTAS).

Initially, operators will need to register for automatic authorisation. Over time, new entrants or those taking on additional responsibilities will need to undergo stricter application processes.

 

Why These Changes Matter

These regulations mark a significant step in aligning the heat network sector with broader energy industry standards. They aim to:

• Protect consumers.
• Build confidence in the market.
• Attract investment to help grow and modernise the sector.

By setting clear rules for both operators and consumers, the government hopes to create a fair and efficient system that supports the transition to a low-carbon future.

 

How to Prepare

If you’re a heat network operator or involved in managing heat for residential or commercial properties, now is the time to:

• Engage with the ongoing consultations to shape the future of these regulations.
• Begin preparing for the April 2025 and January 2026 deadlines by reviewing current practices and aligning them with the proposed standards.

 

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