Authorisation

When Ofgem’s framework goes live, every heat network operator and heat network supplier will need to be authorised. Similar to gas and electricity supplier licencing, Ofgem will not allow non-authorised parties to control heat networks and will hold all authorised parties to account under the new regulations.

Registration for authorisation is set to open on 26th January 2026. Pop it into your calendar now.

You have until January 2027 to complete your registration and once you are registered, you must comply with the new regulations.

Key Takeaway

For PMs, this means building processes that protect consumers and ensure compliance with authorisation conditions.

What it Means for PMs:

Not only are the new regulations about setting a new minimum standard for compliance, but regulations also encompass service quality. Ofgem will set Guaranteed Standards of Performance (GSOPs), including:

Billing accuracy.
Complaint response times.
Service reliability.

What do you think will be the most challenging GSOP for property managers?

Billing accuracy
Complaint response times
Service reliability

Who is an Operator and who is a Supplier?

An Operator:

The entity that operates a relevant heat network: i.e., the one controlling the transfer of thermal energy on the network (or part of it) for the purpose of supplying heating, cooling or hot water. In practice: the asset owner or the party with significant control over the heat network infrastructure (e.g., the energy-centre, distribution mains, connections). They may invest in, repair, maintain the plant/network, procure fuel/energy, ensure technical compliance.

A Supplier:

A person or organisation that supplies (and charges for the supply of) heating, cooling or hot water via a relevant heat network (i.e., a communal or district heat network). In practice - the entity that holds a heat-supply contract (or equivalent) with consumers on a heat network. They are the point of contact for the consumer, set the tariff/terms and are responsible for billing, complaints-handling, consumer protection, etc.

Latest Ofgem Update:

On 3rd November 2025, Ofgem published the latest consultation report: Heat Networks Regulation: Authorisation Conditions. We are working through the document and will update this Playbook with the latest information shortly.