There are three main parts to the planned regulations, which collectively make up the government’s heat network market framework.

Authorisation and consumer protection

 

All GB heat suppliers / heat network operators will need to be authorised by Ofgem. Conditions of these authorisations include compliance with consumer protection standards of conduct, some of which replace parts of the Heat Network (Metering and Billing) Regulations. Ofgem has powers to monitor compliance and take enforcement action for any breaches of the authorisation conditions.

You can find the Ofgem authorisation conditions that apply from 27 January 2026, and Ofgem's associated guidance, on its website here. Suppliers and operators for existing heat networks have until 26 January 2027 to register details of their regulated activities with Ofgem.

Ofgem will also be consulting during 2026 on further authorisation conditions that it plans to phase in at a future point, such as guaranteed standards of performance. 

Heat network zoning

Government will have powers to designate areas as ‘heat network zones’ where heat networks are expected to be the lowest cost solution for decarbonising heat. Certain buildings within zones may be required to connect to heat networks within a specified timeframe. This supports government’s target of supplying 20% of homes through heat networks by 2050.

The specific regulations around zoning will be different in Wales and Scotland to those in England.

You can find the Department for Energy Security and Net Zero's (DESNZ's) 2024 consultation on zoning proposals for England, and its 2026 response to that consultation, here. DESNZ also has a collection of information about zoning here. 

Technical standards, carbon emissions limits and arrangements for financial resilience

Heat network operators will be required by their Ofgem authorisation conditions to comply with a GB-wide code that sets out minimum technical standards. Under the code, heat networks will need to achieve certification against these standards - which are designed to ensure network performance and efficiency. Existing heat networks will be given longer to achieve compliance with the new technical standards.

The standards are expected to replace the remainder of the Heat Network (Metering and Billing) Regulations, as well as build on current voluntary engineering standards such as the Chartered Institution of Building Services Engineers' (CIBSE's) Code of Practice 1 (CP1). They are being designed by the Heat Networks Technical Assurance Scheme (HNTAS) Programme, which you can find information about here. The government is currently consulting on introducing HNTAS and the new standards and you can find its consultation document here. The standards are expected to start to be introduced in regulation from 2027.

Heat networks are fuel-agnostic in that they can be connected to any fuel source. They’re therefore set to play a key role in government’s net zero objectives. Regulation is eventually expected to include decarbonisation targets for heat networks.

Ofgem is also putting in place measures to mitigate the risk and impact to consumers if their heat supplier goes out of business or performs consistently poorly.

Heat Trust has long campaigned for statutory regulation of the sector. We're proud that our Heat Trust Scheme rules are the foundations on which Ofgem's formal regulations are built. We’re working with Ofgem and government to support a smooth transition.

Ofgem and DESNZ say: ‘The Heat Trust's established role in setting industry standards provides a strong foundation upon which the new regulation will build and their continued involvement will aid transition, ensuring continuity, and reducing risk of disruption for the sector and its consumers … [We] encourage parties to follow existing good practice, such as that set out by the Heat Trust.’

Between now and the start of full Ofgem regulation in 2027, our continued involvement will help ensure that:

• Consumers remain front and foremost in regulatory design and decision making (by engaging in consultations and regulatory forums, sharing our insight and expertise)

• Heat suppliers are ready for regulation (by registering and auditing as many as possible under our Scheme)

• There is no gap in consumer protections (by continuing our Scheme until the point that equivalent Ofgem regulations are in place and enforced, which we expect to be in early 2027)

As the independent consumer champion for heat networks in Great Britain, Heat Trust’s input to regulation won’t be limited purely to matters covered by our Scheme. We’re not a trade association and we don’t lobby on behalf of either our Scheme participants or heat suppliers generally.

While we’ll publicise key regulatory developments through our website and LinkedIn, we can’t urge heat suppliers strongly enough to engage directly in the regulatory consultation process.

We’ll publish all of Heat Trust’s responses to government consultations here. 

We believe that Ofgem and government still need to do more to give heat network consumers equivalent protections to other energy consumers - particularly in the areas of price protections, debt support, guaranteed standards of performance and support with heat network remediation costs. 

Read our key asks here.

You can find out more at the links below:

https://www.ofgem.gov.uk/energy-regulation/low-carbon/heat-networks
https://www.gov.uk/government/collections/heat-networks
https://www.gov.scot/policies/renewable-and-low-carbon-energy/heat-networks
https://www.gov.wales/heat-strategy-wales-html 

You can also sign up to receive updates from Ofgem and DESNZ here:

https://www.ofgem.gov.uk/energy-policy-and-regulation/policy-and-regulatory-programmes/heat-networks
https://public.govdelivery.com/accounts/UKBEIS_HN/subscriber/new?preferences=true#tab1