Heat networks 2026: HNTAS and Ofgem — read our 2026 article

Ofgem to regulate heat networks

Editor’s note (January 2026): For commercial‑specific actions, HNTAS requirements and a 90‑day plan, read our 2026 article for commercial heat networks, then return here for background and definitions.

The UK is entering a new phase in its energy landscape as Ofgem, the Office of Gas and Electricity Markets, prepares to regulate heat networks across Great Britain. This change will bring heat network operators into line with gas and electricity suppliers by ensuring customers are treated in a fair and transparent manner.

What are heat networks

Heat networks distribute heating, cooling or hot water from a central source to multiple buildings or units. They come in two main forms.

• Communal heating systems: Serve multiple dwellings within a single building such as blocks of flats
• District heating networks: Extend across multiple buildings such as housing estates or commercial developments

Both forms are covered under the new framework.

Legislative framework

Ofgem’s new regulatory powers stem from two key instruments.

1. Energy Act 2023: Lays the groundwork for Ofgem’s role in regulating heat networks and establishes the legal basis for oversight and consumer protection
2. The Heat Networks (Market Framework) (Great Britain) Regulations 2025: Formally designate Ofgem as the regulator and set the structure of the market framework

Under these regulations, Ofgem — acting through the Gas and Electricity Markets Authority (GEMA) — is empowered to authorise heat network operators, enforce compliance with regulatory standards, oversee consumer protections and coordinate with bodies such as the Energy Ombudsman and Citizens Advice.

Regulatory timeline and implementation

• April 2025: Consumer advocacy services launch. Customers can seek help from Citizens Advice (England and Wales), Advice Direct Scotland and the Energy Ombudsman
• April 2025 – 26 January 2027: Existing heat networks receive “deemed authorisation”. New networks must apply for authorisation from Ofgem
• 27 January 2026: Core regulatory requirements begin to apply. Operators must comply with rules on service, billing transparency and fair pricing, with enforcement phasing in through 2026–2027

The Heat Network (Metering and Billing) Regulations

The Heat Network (Metering and Billing) Regulations 2014, as amended, remain in force. These require heat suppliers to:

• Install metering devices
• Bill customers based on actual consumption
• Submit notifications about their networks to government

These duties support energy efficiency and fair billing, and complement Ofgem’s broader oversight of the market framework.

Why regulation matters

Historically, heat network customers have lacked the protections afforded to gas and electricity users. With Ofgem’s involvement, the sector should benefit from:

• Improved customer service
• Greater transparency in billing
• Fairer pricing structures
• Robust dispute‑resolution routes

This shift is expected to boost consumer confidence and support the growth of heat networks as a reliable, lower‑carbon heating solution.