Why are Heat Networks such big news right now?

From 27 January 2026, the Office of Gas and Electricity Markets (Ofgem) became the statutory regulator for heat networks. This change introduces new legal obligations for organisations that own, operate or supply communal or district heat networks, including landlords and managing agents.

While these obligations will be phased in during 2026–2027, organisations are expected to begin preparing now. Failure to comply may result in enforcement action, financial penalties, and reputational damage.

What are your obligations as a heat network supplier or operator?

Authorisation and Registration

• Register each heat network with Ofgem and comply with the authorisation conditions applicable to their role.

Comply with Consumer Protection Requirements

• Provide clear and accurate information to consumers about their heat supply and maintain an effective complaints-handling procedure.

Ensure Pricing is Transparent

• Consistent with any regulatory requirements, providing a clear breakdown of tariffs and charges, with changes communicated with advance notice.

Maintain Minimum Service Standards

• Upcoming HNTAS will outline metrics to demonstrate this, including requirements to provide specified data and reports to Ofgem.

Keep up-to-date and aware of ongoing changes and compliance notifications from Ofgem.

What do you need to do now?

• Identify all heat networks across the organisation’s assets.
• Confirm your regulatory roles (operator, supplier, or both).
• Confirm outstanding obligated requirements previously compliance returned “duty to install meters”, meter accuracy requirements, Heat Cost Allocators no longer meet compliance requirements.
• Review current billing, complaints and customer communications against Ofgem requirements.
• Prepare information for Ofgem registration (ownership, contracts, financial data).
• Check Energy Ombudsman membership.
• Plan for compliance costs and system changes during 2026–2027.