Heat networks are a key component of the UK government’s strategy to achieve net zero emissions by 2050. As of January 2026 providers will now enter a new regulatory regime, with the Office of Gas and Electricity Markets (Ofgem) assuming supervisory responsibility.
The framework is designed to give heat network customers protections equivalent to those enjoyed by gas and electricity consumers, establish minimum technical standards, and create designated heat network zones.
This article explores the heat network regulatory framework which introduced the new regulatory scheme in January 2026. We explain why compliance matters, outline key requirements and provide practical steps for stakeholders to prepare for the changes.
Under the new regulations, Ofgem now has the authority to impose penalties where an authorisation condition or relevant requirement has been breached. Non-compliance could lead to significant financial and reputational consequences.
Entities involved in the provision of heat networks should consider:
Ofgem’s consultations on the full suite of authorisation conditions can be found here, and on 10 March 2026 it also issued updated guidance setting out the data heat network suppliers and operators must report. The guidance clarifies the required data points, the quarterly and annual submission deadlines, and the key reporting duties, helping regulated entities meet their ongoing transparency and compliance obligations. The updated guidance can be found here.
Ofgem is encouraging all heat network suppliers and operators to register with the Energy Ombudsman. Providers must obtain Ofgem authorisation and ensure full compliance with all requirements.
Networks operating before January 2027 will receive deemed authorisation, meaning they are automatically authorised. New schemes starting after this date must apply for authorisation before commencing operations.
Even with deemed authorisation, all operators must register with Ofgem before 26 January 2027 via the Heat Networks Digital Service. Registration will identify regulated entities and establish a compliance baseline for ongoing supervision.
The new regulatory framework introduces significant measures to safeguard heat network customers.
Stakeholders, including operators, landlords, and suppliers, should take steps to ensure compliance. First, confirm whether your organisation is classified as an operator or supplier under the new rules and clarify internal roles and responsibilities.
If your organisation is subject to the new regulation, you should as a priority:
Where you need support in understanding how these changes affect you, or require specific guidance on the changes you have identified, please get in contact with Brian Farrell.
