Heat networks regulation: recovering Ofgem’s costs

Closes 2 Apr 2026

De minimis

Summary

This chapter sets out our approach to a cost recovery de minimis threshold for heat network regulation. 

The de minimis threshold is based on the size of a heat network and exempts smaller networks below the threshold from paying regulatory costs.

Details

In the Heat network consumer protection consultation (October 2023), we proposed to impose a de minimis threshold exempting heat networks below a certain threshold from paying regulatory costs to Ofgem.

We are currently only consulting on our proposal to implement a threshold, which will be calculated post-initial period once we have obtained reliable data regarding the heat network market.

Before you give us your views

You’ll need to read the full details in the 'De Minimis' chapter of the consultation document (PDF, opens in a new window).

1. Do you agree, partially agree or disagree with our approach to implementing a de minimis threshold? Please explain your answer.
2. Are there any other factors, benefits or risks to the options we have outlined for implementing de minimis?