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

Closes 19 Sep 2025

Risks of failure and models in the sector

Summary

In this chapter, we share our assessment of the risks to continued supply in the case of failure of the authorised entity in common heat network delivery models.

Details

By understanding the common features of different delivery models, we've sought to assess how financial failure might be addressed in different scenarios, through:

  • commercial outcomes
  • incentives for other entities with an interest in the continuity of the heat network

This has helped us to understand where gaps exist which may hamper commercial outcomes, and where regulatory intervention might still be required.

Before you give us your views

You’ll need to read the full details in the 'Risks of failure and models in the sector' chapter of the consultation (PDF, opens in a new window).

1. Do you agree with our assessment of the risks to continuity of supply where operators face financial failure in the sector? Please explain your answer.
2. Are there any other models which we have not explored which merit assessment of the risks to continuity of supply in case of financial failure? Please explain your answer.