Ofgem consultations

We consulted on the draft registration guidance to support implementation of the heat networks regulatory framework. The guidance is designed to help authorised persons determine whether their activities are in scope, understand how to register, and clarify responsibilities in settings with multiple operators. The consultation sought stakeholder views on whether the draft guidance was clear and fit for purpose.

We received 21 responses from a range of stakeholders including:

• operators
• suppliers
• housing associations
• consumer organisations
• trade bodies
• Ombudsman
• Energy consultant

Stakeholders broadly supported the draft guidance, valuing clarity on regulated roles and exemptions. Feedback called for clearer explanation of treatment of connected or embedded networks, a decision framework for determining ‘substantial control’ over heat network assets and included general requests for proportionality in the approach to regulation of small or self-supply heat networks. Stakeholders also requested more detail on registration processes, supplier and operator dependencies, vulnerability data handling, and practical examples for complex arrangements.

We have made updates to the final registration guidance to address stakeholder feedback. The guidance will be strengthened by:

Adding examples further detail and examples for self-supply and industrial heat networks.

Setting out illustrative factors for determining ‘substantial control’ and providing worked examples for complex cases.

Confirming that registration will be managed through a digital service, clarifying service features and our intention to publish additional resources to support the service.

For networks with multiple operators, the guidance continues our non-prescriptive approach to avoid impacting established arrangements. It clarifies that nominated operators serve as the primary regulatory contact without assuming liability for others, with expectations applied proportionately on a case-by-case basis.

View our consultation decision (PDF, 183KB)

We consulted on a fair pricing and cost allocation guidance framework for heat networks. This built on our joint consultation with the Department for Energy Security and Net Zero (DESNZ) on implementing heat networks regulations for consumer protection (2024 implementing consumer protections consultation) and our fair pricing protections consultation (April 2025 consultation). We sought feedback and views on the following areas:

• Fair pricing principles guidance
• Cost allocation guidance

We received 38 responses from a range of stakeholders including:

• energy network operators
• energy suppliers
• trade associations
• consumer advocacy bodies
• housing associations
• local authorities
• property management companies
• individual consumers
• metering and billing providers

We reviewed responses and considered stakeholder views. In general, stakeholders were supportive of our proposed guidance on fair pricing and cost allocation.

Whilst there was general support, we did receive feedback on potential changes that could be included prior to the publication of the first iteration of guidance to aid in clarity and understanding. Some stakeholders expressed concerns with areas of the guidance related to the ‘affordability’ and ‘fair and reasonable returns’ principles.

We have decided to proceed with the overall approach to the first iteration of guidance, focusing on the fair pricing principles and cost allocation. We have made changes to wording structure where appropriate, in response to stakeholder feedback. In particular, we have updated the ‘industry outcome’ to make clear that sector growth is a desired outcome of this framework, and that a fair return for investors is a key element of achieving this, alongside ensuring consumers have confidence in the sector through fair pricing. We have decided to update the ‘affordability’ principle, which is now called ‘consumer impact’, to minimise confusion and to better reflect its intended purpose and contents.

We are publishing this first iteration of guidance alongside this decision document in January 2026.

View our consultation decision (PDF, 473 KB)

We asked for views on the draft consumer protection guidance under the forthcoming heat networks regulatory framework. The areas of draft guidance included:

• Standards of Conduct
• quality of service
• billing and transparency
• back-billing 
• heat supply contracts
• protections for consumers in vulnerable situations
• security of supply

The consultation asked stakeholders for their views on whether the draft guidance areas are relevant to the authorisation conditions, and useful. It also invited feedback on how the draft guidance could be improved.

We received 37 responses from a range of stakeholders, including: 

• operators and suppliers 
• local authorities
• housing associations 
• consumer organisations 
• trade bodies 
• property managers
• consumers

Stakeholders broadly agreed with the draft guidance, with constructive feedback highlighting areas for improvement and further clarity.

We have decided to proceed with the intended guidance, using stakeholder suggestions to make changes where appropriate in order to finalise the guidance ahead of regulatory commencement. 

View our consultation decision (PDF, 784 KB)