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

Closes 19 Sep 2025

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Financial resilience

Summary

This chapter sets out our financial resilience obligations.

These obligations will ensure that heat networks are acting responsibly and proactively managing their finances to mitigate the risk of financial failure. 

Details

In the 2024 joint consultation we proposed introducing authorisation conditions on:

  • ‘Financial Responsibility Principle and Availability of Resources’
  • ‘Control over Material Assets’

We have developed these proposals further and have provided draft conditions for feedback.

We also proposed to introduce financial monitoring questions that would provide a high-level indication of an authorised entity’s financial health.

Before you give us your views

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

6. Do you agree with the policy intent and authorisation condition ‘Availability of Resources and Internal Capability? Please explain your answer.
7. Do you agree with the policy intent and authorisation condition ‘Material Assets'? Please explain your answer.
8. Do you agree with the approach to financial monitoring and the regular reporting requirements? Please explain your answer.
9. Do you have feedback on the proposed guidance outlined in Appendix 2 that would improve its use for your organisation?
10. Do you have feedback on the proposed guidance outlined in Appendix 3 that would improve its use for your organisation?