​​Heat networks regulation: authorisation conditions and guidance on measures to mitigate the risk and impact of financial failure​

Overview

We are consulting on measures to mitigate the financial failure of heat networks in England, Scotland and Wales (Great Britain). These proposals include the scope of financial provisions and continuity arrangements for heat networks and the regular ongoing financial monitoring of the sector. 

Who should respond

The consultation will be of interest to the heat network industry, including: 

• consumer advocacy groups
• industry trade associations
• energy supply companies
• local authorities
• housing associations 
• managing agents, property management companies and developers
• landlords
• building owners
• heat network consumers  

The proposals on recovering costs from a Special Administration Regime (SAR) will also be relevant to the gas and electricity sector, including network companies and supply licensees. 

Background

The Energy Act 2023 named Ofgem as the regulator for heat networks in Great Britain. Our most recent Forward Work Programme outlines how we intend to develop a regulatory framework for heat networks which is proportionate, in line with our duties to protect consumers, and which supports:  

• investment
• market growth  
• meeting the Government’s net zero targets   

  This consultation builds on the approaches proposed in   

• our 2023 joint consultation with the Department for Energy and Net Zero (DESNZ) on heat networks regulations for consumer protection  
• the 2024 government response to that consultation 
• the contents of the Heat Networks (Market Framework) Regulations 2025 Statutory Instrument.  
• our 2024 joint consultation with DESNZ on heat networks regulations for implementing consumer protections  
• the government response to that consultation  

Before you start

Read the ​'Heat networks regulation: authorisation conditions and guidance on measures to mitigate the risk and impact of financial failure' consultation document. You’ll find it in the ‘Related’ section on this page. Please refer to this document when giving us your views.

Why your views matter

Your feedback will help us develop new regulations to protect consumers and improve network reliability, while allowing growth in the sector.