Journey

Get your heat network authorised with Ofgem

Work out if you operate or supply a heat network in scope of the new Ofgem regime, register before the 26 January 2027 deadline, and meet your consumer-protection and complaints-handling duties.

Energy & Utilities Running a Business Updated 3 September 2026
6 milestones references 3 guides

About heat network authorisation

Heat networks - district heating and cooling schemes, and communal systems that serve more than one building or more than one customer from a shared plant - moved into formal utility-style regulation on 27 January 2026. Ofgem is now the regulator under the Energy Act 2023 and the Heat Networks (Market Framework) (Great Britain) Regulations 2025. If you were already operating or supplying a relevant heat network on that date, you received automatic "deemed authorisation" to keep trading, but that does not defer your obligations - the authorisation conditions and consumer-protection duties applied from day one. You must still register the network's full details with Ofgem by 26 January 2027. Operating or supplying an unauthorised, unregistered heat network after that date is a criminal offence, and Ofgem can fine authorised persons up to 10% of turnover or £1 million, whichever is higher, for breaching a condition.

  1. Work out whether you operate or supply a heat network in scope

    A "relevant heat network" is any network that supplies heat, cooling, or hot water to two or more premises that are not all owned by the same person - it covers large district schemes and much smaller communal systems alike, including a single block of flats on one shared boiler or heat interface unit. Two separate roles can trigger regulation, and you can hold either or both: the operator runs and maintains the network's plant, and the supplier bills and contracts with the end consumer. If you are a landlord, managing agent, or housing association running a communal heating system and billing tenants for their heat, you are very likely a heat supplier - and possibly an operator too - even if you think of the arrangement as simply "included in the service charge" rather than a utility supply.

    Some networks and arrangements are exempt or fall outside scope - for example certain very small or temporary systems - so check your specific network against Ofgem's published scope guidance rather than assuming size alone puts you outside it.

    Run a heat network or steam supply business

    The full operator guide - heat network authorisation alongside the plant-level duties (pressure systems, F-gas, building energy standards, CHPQA, ESOS).

  2. Register your network with Ofgem before 26 January 2027

    Every relevant heat network needs its own registration - if you run more than one scheme, each one needs a separate entry. Registration is made through Ofgem's Heat Networks Digital Service, which opened for submissions in spring 2026, and must be completed by 26 January 2027. You will need to give Ofgem details of the network's ownership and organisational structure, its financial resilience, and its consumer-protection arrangements. Missing the deadline is a criminal offence, not just a compliance gap, so build registration into your 2026 workplan now rather than treating it as a 2027 task.

  3. Meet your consumer-protection duties

    Ofgem's authorisation conditions require heat suppliers to treat customers broadly as gas and electricity suppliers must: fair and transparent pricing (Condition A6) and cost allocation (Condition A7), clear itemised billing that replaces vague monthly charges, a Consumer Welcome Pack and Priority Services Register for customers in vulnerable circumstances, a Financial Resilience Statement, and a Supply Continuity Plan covering what happens if you cannot continue supplying heat. Some of these conditions replace parts of the older Heat Network (Metering and Billing) Regulations 2014, which continue to apply alongside the new regime where they are not superseded - so check which set of rules covers metering and billing on your specific network rather than assuming one has fully replaced the other.

    The voluntary Heat Trust scheme set the model for many of these protections before regulation existed, and its standards are now complementary to your statutory Ofgem conditions rather than a substitute for them.

  4. Track the technical standards trajectory

    Alongside consumer protection, Ofgem authorisation increasingly requires certification against formal technical standards for network design, performance, and efficiency - the Heat Network Technical Assurance Scheme (HNTAS). The voluntary CIBSE CP1 (2020) code of practice has been the industry benchmark to date, and the new Heat Network Technical Standard (TS1) is built on CP1 but converts it from voluntary guidance into a formal certification requirement. If your network was designed or installed to CP1 already, you are well placed - but do not assume past compliance with a voluntary code automatically satisfies the new statutory technical conditions once they take full effect.

  5. Set up complaints handling and redress

    You must have a clear, accessible internal complaints process for your heat network customers. Once a complaint has been through your internal process and remains unresolved, the customer can escalate it to the Energy Ombudsman, which now covers heat networks alongside gas and electricity. As an authorised heat supplier you must register with the Energy Ombudsman redress scheme so this escalation route is available - this is separate from, and additional to, your Ofgem registration. Unresolved complaints about matters like unplanned outages can lead to Ombudsman-directed compensation, so a documented, working internal process that actually resolves most issues before escalation is in your interest as well as your customers'.

  6. Confirm your ongoing compliance position

    Once you are registered and your consumer-protection arrangements are in place, review your position periodically rather than treating authorisation as a one-off task - notify Ofgem of material changes to your organisation, ownership, or the network itself, and keep your Financial Resilience Statement and Supply Continuity Plan current as your business changes.

    Check your wider energy compliance position

    The energy compliance checklist covers the duties every energy business shares, alongside your heat network-specific obligations.

Related resources

Run a compliant energy business

The cross-cutting duties that apply to any energy business - health and safety, environmental permitting, UK ETS, and major-accident-hazard rules - alongside your heat network-specific obligations.