Heat networks regulation: authorisation and regulatory oversight

Overview

We are consulting on proposed new rules for the authorisation and regulatory oversight of heat networks in Great Britain (England, Scotland and Wales).

Who should respond

We would like views from anyone with an interest in heat networks, in particular:

• heat network operators and suppliers
• energy services companies
• social housing providers
• building and estate asset managers
• local authorities
• consumer groups
• trade associations
• managing agents
• heat network consultants
• landlords
• heat network customers

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 regulations for heat networks that are proportionate, in line with our duties to protect consumers, and which support:

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

This consultation gives further details of the processes behind this regulatory framework, building on the approaches proposed in:

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

We also describe our proposals for putting this framework in place.

This will help heat network operators to prepare for the introduction of the regulatory framework from April 2025, and regulatory rules from January 2026.

Joint Ofgem-DESNZ consultation

This consultation should also be considered alongside the obligations proposed in the current joint Ofgem-DESNZ consultation on implementation of consumer protections.

Before you start

Read the Heat networks regulation: authorisation and regulatory oversight 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.