Heat Supply Agreement Checklist - Heat Supply Agreement Checklist

Heat Supply Agreement Checklist

From The Heat Network Compliance Companion Playbook

Heat Network Market Framework Regulations (HNMFR) - Heat Supply Agreement Checklist - Data Energy Information required to be in your Heat Supply Agreement.Contents

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Heat Supply Contracts

Contracts must include mandated “Principal Terms,” be clear and fair, and meet strict requirements around transparency and amendment.

There are 3 contract formats:

Lease agreements

2. Heat Supply Agreements (Relevant Supply Contract)

A Heat Supply Agreement is a signed, formal contract where the consumer formally agrees to a full set of written terms, creating a standard contractual relationship. It can include termination notice terms (within limits), with notice capped at a maximum of 30 days.

3. Deemed Heat Supply Agreements (Deemed Contract)

A Deemed Supply Agreement arises automatically without a signature when the consumer simply takes supply, acting as a safety-net/default relationship. The Principal Terms must be provided promptly, it cannot be fixed-term, and no termination notice is required to switch.

It’s important to understand the difference between a Relevant Supply Contract and Deemed Contract.

Heat Supply Agreement Checklist →

Heat Supply Agreement Checklist

Before Offering a Contract

Information Provision
☐	Consumer is told clearly that they are entering into a legally binding agreement.
☐	Principal Terms are provided upfront and in plain, intelligible language.
☐	Principal Terms reflect all mandatory items (pricing, rights, dispute options, KPIs, etc.).

Contract Format Requirements
☐	Contract is in writing.
☐	Contract is drafted in plain, intelligible language.
☐	Contract is provided as a single pack (one or more documents).
☐	No terms rely on a website link or external source.
☐	A complete copy is provided:

☐	At the start of supply
☐	On request (within a reasonable time)
☐	Whenever changes are made

2. Contract Format Requirements

Heat Supply Agreement Checklist

Deemed Contracts
☐	No fixed-term period.
☐	No termination fee.

3. Contract Validity, Duration & Termination

Required termination clauses:

☐	Domestic Contracts end:

-	When consumer moves out (if they gave ≥2 working days’ notice), or
-	Within 2 working days after notifying post-move-out, or
-	When a new occupant starts taking supply.

☐	Notice Periods:

-	Consumers are not required to give more than 30 working days to terminate.

-	No notice required to switch to a formal Supply Contract.

☐	Consumer is informed that alternative Supply Contracts may be available.
☐	Principal Terms of the Deemed Contract are provided promptly.

Heat Supply Agreement Checklist

4. Mandatory Contract Contents

Every contract must include:

Identification & Contact
☐	Supplier identity, address, and all contact channels (email, instant messaging, phone, post).

Terms & Charges
☐	All terms and conditions, including Principal Terms.
☐	Clear separation of:

-	Charges for heat supply
-	Charges for other goods/services (e.g., maintenance, metering)

Billing
☐	Required Billing Information included.
☐	How the consumer can access tariff information and charge-change justifications.

Services
☐	Details of services provided directly.
☐	Details of services delivered by third parties.

-	Clear breakdown of which organisation is responsible for what.

Heat Supply Agreement Checklist

Consumer Rights & Support
☐	Complaints Handling Procedure details.
☐	How to initiate dispute resolution (Ombudsman or tribunal).
☐	Information on consumer advocacy services (where applicable).
☐	Energy efficiency advice - contacts and websites for relevant organisations.

Performance & Energy Information
☐	KPIs including network efficiency.
☐	Information on heat source and environmental impact.

Data & Requests
☐	How to request Historic Consumption Data.

Regulatory Requirements
☐	All additional terms required elsewhere in authorisation conditions are included.
☐	Terms are not unduly onerous.
☐	No term conflicts with any authorisation condition.

Heat Supply Agreement Checklist

5. Contract Issuing & Accessibility

☐	A full copy is given at contract start.
☐	A copy is provided on demand.
☐	Updated copies are provided whenever terms are changed.
☐	Accessibility needs (formats, readability) are considered where applicable.

6. Contract Update Requirements (Transitional)

☐	All existing contracts (pre-framework) have been reviewed.
☐	Reasonable endeavours made to vary terms to comply with B2 of the HNMFR.
☐	Teams act as if contract terms meet B2 even if variation is still pending.
☐	Minimum 31 days notice for any changes or updates to contract terms, costs or other unilaterally disadvantageous decisions.

Download The Checklist

Access Further Resources:

Further Reading on the Heat Network Market Framework Regulations

We've summarised the 25 Authorisation Conditions published in the latest HNMFR. This will be available shortly.

You can also use our Billing Information Checklist to make sure you (or your provider) are following the published guidelines.