Pillar 2:
Optimisation & Funding

Joined-up support. Technical rigour. Commercial clarity.

Turning Compliance into Measurable Performance

Regulatory readiness is only part of the picture.

Ofgem will expect operators to evidence performance - not just governance. Efficiency, data visibility and system reliability will come under increasing scrutiny.

For many existing networks, performance gaps already exist:

High return temperatures
Unexplained losses
Incomplete metering data
Billing inconsistencies

This can result in increased resident complaints and rising energy costs. The Heat Network Efficiency Scheme (HNES) provides a structured, funded route to diagnose and address these issues.

We support Property Managers and heat suppliers in navigating this pathway - coordinating technical specialists where required and ensuring outputs align with both regulatory and funding expectations.

Is Your Network Performing as It Should?

If you want to understand your network’s true performance - and whether funding is available to improve it - we can define the appropriate scope together.

Delivered with Specialist Expertise, Led by Us

We work in partnership with experienced, independent technical specialists to deliver optimisation studies with the required depth and credibility.

Our role is to:

Define the right scope for your scheme
Align the study with HNES and regulatory requirements
Ensure findings translate into practical, fundable actions
Integrate outputs into your wider compliance and asset strategy

You benefit from specialist engineering expertise, without losing strategic oversight.

The result is joined-up support that delivers technical rigour with commercial clarity.

Revenue-Funded Optimisation Studies

An optimisation study is a structured, data-led technical investigation into how your specific heat network is designed, operated and performing in reality - not just how it was intended to perform.

Through HNES, revenue funding can cover up to 100% of eligible optimisation study costs, significantly reducing the financial barrier to gaining independent technical insight.

Delivered in collaboration with our specialist technical partner, studies typically include:

Data analysis
Physical inspections
Performance benchmarking
Root cause identification
Costed, prioritised improvement plan

Data Analysis

Detailed review of metering data (kWh, flow rates, temperatures)
Assessment of energy purchased vs energy delivered
Identification of distribution and generation losses
Review of return temperatures and system balance
Trend analysis of performance over time

2. Physical Inspection

On-site inspection of plant, pumps, controls and distribution systems
Assessment of control strategy and sequencing
Identification of mechanical or configuration inefficiencies
Review of insulation standards and asset condition

Revenue-Funded Optimisation Studies

3. Performance Benchmarking

Comparison against technical best practice
Assessment against regulatory and HNTAS performance expectations
Identification of systemic underperformance

4. Root Cause Identification

Diagnosis of why inefficiencies are occurring
Differentiation between design flaws, control issues and operational practices
Identification of quick wins versus structural upgrades

5. Costed, Prioritised Improvement Plan

Design-level recommendations
Indicative capital costs
Phased implementation roadmap
Clear linkage between intervention and measurable benefit

Why this matters

With Ofgem introducing licensing, guaranteed standards and increased data scrutiny, operators will need to evidence performance - not simply assert it.

An optimisation study provides:

A defensible performance baseline
Documented technical evidence
A structured improvement pathway
Support for capital funding applications
Confidence ahead of regulatory inspection
It shifts your position from reactive to proactive.

Capital Funding & Implementing Physical Improvements

Following a revenue-funded study, HNES capital grants can support delivery of recommended upgrades. Capital grants typically contribute up to 50% of eligible project costs.

Eligible works may include:

Pump and control optimisation
HIU replacement
Distribution pipework insulation upgrades
BMS and monitoring improvements
Return temperature reduction measures
Flow balancing and hydraulic optimisation

Capital applications must be supported by clear technical evidence - usually generated through an optimisation study.

A Structured Pathway

The most successful applications follow a clear progression:

Evidence → Revenue Funding → Optimisation Study → Costed Upgrade Plan → Capital Application

This approach:

Avoids premature capital spend
Strengthens funding applications
Reduces risk of rejected bids
Aligns improvement plans with measurable outcomes
Supports future Ofgem scrutiny

We work with Property Managers to assess whether HNES is appropriate for their scheme. We'll define scope aligned with funding criteria, coordinate with qualified optimisation study providers, shape applications around clear evidence and outcomes and align performance improvements with regulatory readiness.