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

Closes 19 Sep 2025

Scope

Summary

This chapter sets out our proposals on how our financial resilience provisions will apply across:

  • social housing
  • local authorities
  • mixed tenure models
  • more complex models of housing and energy arrangements, such as special purpose vehicles and energy supply companies

Details

In the 2024 joint consultation we proposed that the majority of our financial resilience provisions (including the Special Administration Regime) should not apply to local authorities or registered providers of social housing who are registered with either:

  • the Regulator of Social Housing for England
  • the Scottish Social Housing Regulator
  • the Welsh Social Housing Regulator

The rationale for this is that there are already existing provisions in these sectors which mitigate the risk of an interruption in continuity of supply where the entity faces financial difficulties. 

A number of respondents to the 2024 joint consultation also raised mixed models of housing and energy provision, and we have sought further advice in this area. We are proposing that where organisations are established to provide heat network services as distinct entities from their parent organisation, these would remain in the scope of our financial resilience provisions.

Before you give us your views 

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

 

3. Are there other segments of the heat network sector which have clear continuity of customer supply arrangements in the event of a market exit which we have not considered? Please explain your answer.
4. Do you agree that our financial resilience provisions should apply where registered providers are using separate entities to carry out regulated heat network activity? This can include subsidiaries that are not regulated by a social housing regulator, like energy supply companies or special purpose vehicles.
5. Do you agree that self-supply and industrial networks should be out of scope of the financial resilience requirements?