Heat networks regulation: enforcement guidelines and penalty policy

Overview

We are consulting on our proposed enforcement guidelines and penalty policy for heat networks regulation in Great Britain (England, Scotland and Wales).

We are also seeking views on the use of fixed penalties.

Who should respond

We are seeking views from heat network operators and other parties with an interest in our enforcement role in regulating heat networks. We particularly welcome responses from:

• landlords 
• housing providers 
• asset owners 
• consumer groups 
• energy services companies 
• managing agents 
• metering and billing agents  
• trade associations 
• heat network consumers 

We would also welcome responses from other stakeholders and members of the public.

Background

Under the Energy Act 2023, the UK Government has introduced new enforcement powers for the regulation of heat networks across Great Britain.

These powers are set out in the Heat Networks (Market Framework) (Great Britain) Regulations 2025 (the “Regulations”), which will come into force on 27 January 2026.

Scotland has its own legislative framework under the Heat Networks (Scotland) Act 2021. While the Energy Act 2023 and the 2025 Regulations apply across Great Britain, certain provisions, particularly around implementation, are tailored to align with devolved Scottish legislation.

Our approach

Our approach to heat network enforcement is largely modelled on our existing Enforcement Guidelines and Statement of Policy with respect to Financial Penalties under the Gas Act and Electricity Act.

We have chosen to publish our enforcement guidelines and penalty policy for heat networks regulation separately at this stage. This reflects the fact that heat networks is a new and developing sector, and there is value in setting out our approach clearly.

However, given the similarities with our existing guidance, we may consider incorporating elements of these documents into our main enforcement guidance in the future.

Before you start

Our proposed approach is outlined in two new documents:

• the Heat Networks Enforcement Guidelines
• the Heat Networks Penalty Policy

Before you start, please read these documents. You’ll find them in the ‘Related’ section on this page. 

Why your views matter

Your feedback will help us shape a fair and effective enforcement framework for heat networks. It will ensure our approach reflects the needs of consumers, operators, and other stakeholders in this evolving sector.