Ofgem’s Role & Plan

Ofgem’s role is to ensure heat networks meet the same consumer protections and technical standards already in place for electricity and gas. For PMs, this means new duties - but also clearer expectations

Key Milestones: Ofgem & DESNZ Timeline

Ofgem's role is to ensure heat networks meet the same consumer protections and technical standards already in place for electricity and gas. For PMs, this means new duties - but also clearer expectations.

Further reading: DESNZ: UK Heat Networks: Market Overview

Ofgem's Role and Plan

What Ofgem Will Do:

Introduce an authorisation process for heat suppliers.
Set and enforce consumer protection standards.
Require metering and AMR at both block and dwelling levels.
Oversee technical standards through HNTAS.
Monitor performance and enforce quality of service standards (GSOPs).
Protect vulnerable customers.
Apply penalties for non-compliance — up to £1m or 10% of revenue (whichever is greater).

Resource: Ofgem's Heat Networks regulation page

Key players with Ofgem:

UK Government (DESNZ - Department for Energy Security and Net Zero) – aligns regulations with national energy policies.
National Grid ESO – ensures stability and reliability of the electricity network.
Energy Ombudsman – manages consumer complaints and disputes.
Competition and Markets Authority (CMA) – prevents anti-competitive behaviour.
Citizens Advice – provides consumer support and guidance.

The journey is phased, but deadlines are coming fast.

What is Ofgem's role in heat networks regulation?

Authorising suppliers and enforcing standards
Monitoring technical standards
Protecting vulnerable customers
All of the above

Market Framework Regulations

The Heat Network Market Framework Regulations build on the existing HNMBR 2014. A lot of the guiding principles remain unchanged and have just either been updated or removed, if expectations have increased since their original release. The new HNMFR will be used in conjunction with HNTAS to deliver compliance and transparency from all Heat Networks across the UK.

As HNTAS has not yet been published, the current HNMBR remain in place for all aspects not covered under the new HNMFR. As it stands, technical standards should be based on current CIBSE CPI guidance whilst we await the formal publication of the HNTAS framework.

Supplier Standards of Conduct

Suppliers must treat consumers fairly, communicate clearly, and behave honestly and professionally.

All communications about disadvantageous unilateral decisions must be made at least 31 days in advance of the change occurring. This includes increases to tariffs, planned works that will interrupt supply and changes to their contracted terms.

The 25 Authorisation Conditions

A summary of each condition is included in the Summary

Section A – Conditions for all Authorised Persons (Operators and Suppliers)

These apply universally and cover core responsibilities of both parties under the regulations.

Section B – Conditions for Suppliers (those supplying heat/cooling/hot water)

Section C – Conditions for operators (those running the heat network)