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.

Digital registration for authorisation is set to open in the Spring of 2026. This has been delayed from the original date of 26th January 2026.

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

Key Update

On 3rd November 2025, Ofgem published the latest consultation report: Heat Networks Regulation: Authorisation Conditions. We have summarised the latest information available from hundreds of pages of guidance. Access it here.

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 have now updated this Playbook with the latest information available.

6 Main Areas of Reporting (Draft Ofgem Guidance)

Initial regular reporting will open in the Autumn of 2026 and be backdated to April 2026. You will need to ensure that you are collecting relevant data from April 2026. Authorised parties are expected to complete regular reporting to Ofgem. The most recent guidance webinar took place on 11th December and consultations close on 12th January 2026. The table below outlines the current proposed reporting requirements.

These reporting areas are set out in Ofgem’s draft guidance on regular data reporting. Final requirements, scope and reporting intervals may change once the guidance is confirmed.

Reporting Area	What this covers (high level)	Who is responsible	Typical reporting cadence
Financial resilience & continuity arrangements	Evidence that the organisation is financially stable and able to continue supplying heat, including continuity and contingency planning.	Supplier and/or Operator (depending on structure)	Annual
Heat network general information	Core information about each heat network, including size, configuration, customer numbers, meters, and network characteristics.	Operator (with supplier input where required)	Annual
Billing	How customers are billed, billing frequency, payment methods, and billing practices applied across the network.	Supplier	Annual
Vulnerability & Debt	Information on customers in vulnerable circumstances, levels of debt, repayment plans, self-disconnection and disconnections for non-payment.	Supplier	Quarterly and annual (varies by metric)
Quality of Service	Service performance information such as outages, complaints, response times, and customer service standards.	Supplier and Operator	Quarterly and annual (varies by metric)
Pricing	Heat pricing structures, tariff components, and changes to charges applied to customers.	Supplier	Annual

Heat Supply Contracts

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

The Principal Terms are detailed in the Heat Supply Agreement Checklist.

There are 3 contract formats:

Lease agreements
Heat Supply Agreements (Relevant Supply Contract)
Deemed Heat Supply Agreements (Deemed Contract)

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

Get the Heat Supply Agreement Checklist

Heat Supply Agreement

Signed, formal contract
Consumer formally agrees
Full set of contract terms in writing
Can include a contract term (within limits)
May have termination notice (max 30 days)
Standard contractual relationship

Deemed Supply Agreement

No signature; arises automatically
Consumer simply takes supply
Principal Terms must be given promptly
Cannot be fixed-term
No termination notice required to switch
Safety-net/default relationship

Are you ready for Authorisation?

What Heat Network Operators and Suppliers must understand, prepare for and act on.

The Heat Network Market Framework Regulations (HNMFR) are coming. Building on the Heat Network (Metering and Billing) Regulations 2014 (HNMBR), the new framework introduces 25 Authorisation Conditions that authorised suppliers and operators will be judged against.

Ofgem’s core aims are:

Transparency
Consumer protection
Fairness across the UK heat market

These conditions set clear expectations for how heat suppliers and operators must behave. They aren’t optional best practice - they are conditions of authorisation.

The HNMFR works alongside the forthcoming Heat Network Technical and Assessment Standards (HNTAS) framework. Until HNTAS is published, existing technical standards from HNMBR continue to apply.

Get the complete summary of Ofgem’s Heat Network Market Framework Regulations. We've distilled hundreds of pages of regulatory material into a single, clear, usable reference guide.

Download