Heat network regulations: How to prepare
Key consumer protections for heat network customers began on 1 April 2025, with the Energy Ombudsman and Citizens Advice appointed to provide support and dispute resolution. While full regulation is still to come, these early preperations are already helping to shape a fairer future for heat networks.
What is already in operation?
On 1st April 2025, the Consumer advice services were launched with the appointment of:
- The Energy Ombudsman (EO) to provide an independent dispute resolution service for heat network customers. EO is an established organisation, set up in 2006 to deal with customer disputes with energy suppliers. It knows the sector because it’s been working with the Heat Trust for 10yrs.
- Citizens Advice has also been appointed from 1st April to provide advice to heat network customers in England & Wales. In Scotland this service will be run by Consumer Scotland.
When will these Regulations come into operation?
These Regulations will be laid in Parliament later in 2025. There will be different commencement dates for each aspect of the regulations as follows.
January 2026 the Regulations commence and Ofgem’s role as regulator begins with the authorisation regime coming into effect. Heat networks will be deemed to be authorised from the outset in April 2025, and will be given until early 2027 to complete registration through Ofgem’s digital service. Ofgem will have the ability to intervene in egregious cases of non-compliance.
2027 onwards Ofgem will begin industry-wide compliance activity, with more protections coming into force.
DESNZ is currently sourcing providers for the following three functions Technical Assurance Scheme Operator, Training Provider and Certification Body, which are integral to the operation of the new regulations. DESNZ is also developing a new technical standard - TS1, based on CP1 (2020) to align with HNTAS technical requirements. It is being developed with the input of multiple technical industry experts.
There will be additional consultations in 2025 before all the new regulations are published. Landlords can register with DESNZ to be kept informed of consultations and developments.
Which aspects are currently out for consultation?
Heat networks regulation: fair pricing protections consultation was published 30 April and closes on 9 July 2025. Ofgem are running 2 webinars to explain this consultation and to help heat network operators respond. The webinars will be held on 21 May and 4 June. Landlords wanting to attend can register for the May webinar and for the June webinar. Recordings are available for previous webinars.
Ofgem is also working with The Heat Trust members to help develop on guidance to support authorised persons to comply with its authorisation conditions. This will be an opportunity for the sector to help Ofgem identify which topics would be most helpful and its format.
A consultation on Technical Standards is expected later this year, while the Government has yet to publish its response and decision on the consultations that have closed this year, with the regulations being laid before Parliament afterwards.
What should social landlords do now?
Landlords should register now with the Energy Ombudsman so they can be informed of how the Ombudsman operates and how it will operate its independent dispute resolution service. Once registered, landlords (HN operators) will receive an information pack and s set of FAQs.
They should register with DESNZ for updates and study what is being proposed by reading the consultations and responding where the proposals are not suited to the sector.
How can social landlords prepare?
They should register with the Energy Ombudsman, study its guidance and establish clear record-keeping for Heat Network enquiries, complaints and how they are dealt with. This will enable them to comply with the new requirements and ensure they have the evidence to demonstrate their compliance.
They should study the new regulations to understand what they will be required to do and to assess any areas in their heat network operation need to be improved or introduced. For example, consumer protection should be less of a concern for social landlords because they are already required to do this but they may want to ensure that customer service staff can record when enquiries or complaints relate to a heat network so they can keep records of how they have dealt with them.
It will also be important for social landlords to check whether their definition of vulnerable customer adequately covers Ofgem’s definition. Landlords should consider updating tenancy documents and inform all new tenants when they are supplied by a heat network. Landlords will need to be more proactive to avoid the risk of tenants falling into fuel poverty, debt, etc.
Landlords need to ensure they have all the information they need to comply and identifying any gaps in their data. They will also need to understand the new Technical Standards that heat networks will have to meet (consultation expected shortly).]
Sign up to receive DESNZ’s Newsletters, which keep landlords up to date and notify them of webinars, training and other help that the Government is providing to help the sector understand and comply with the new Heat Network Regulations.
What help is available?
The Heat Network is a forum to discuss and share good practice about district and communal heating within social housing. It brings together its own communal heat experiences, shares lessons and some short guidance documents to help colleagues across the sector. It also acts as a conduit for social housing input into national heat network policy.
The NHMF organised a workshop at its Conference dedicated to the Heat Network Regs and these consultations with presentations by The Heat Network, DESNZ, Fairheat, and a social landlord. This workshop enabled social landlords to understand what will be required by these new regulations and will help comply and the slides can be found HERE.
The NHMF promotes best practice in social housing maintenance and is committed to championing innovation to deliver excellence in maintenance and asset management. An organisation automatically becomes a member when it subscribes to the M3NHF Schedule of Rates and selected modules. Its Best Practice website publishes briefings on asset management and repairs and maintenance, including links to all the relevant legislation and guidance.
DESNZ also awards grants of up to £500 towards eligible Heat Network Training courses. These grants are available until April 2025. DESNZ’s Newsletters keep landlords up to date and notify them of webinars, training, and other help that the Government is providing to help the sector understand and comply with the new Heat Network Regulations. Grants are also available for organisations who provide training. Applications for the latest round of Heat Training Grants closes on 11 June 2025.
The NHMF acknowledges the help and advice from Rachael Mills, The Heat Network.
