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

Foundations of Heat Network Market Framework Regulations (HNMFR)

HNMFR is built on authorisation, accountability, consumer protection, technical performance, and enforceable oversight - all underpinned by data and transparency.

Ofgem’s regulation of heat networks is built on two core foundations: Consumer Protection and Technical Assurance. Together, they are designed to bring heat networks in line with the standards customers already expect from gas and electricity.

Consumer Protection focuses on fairness, transparency, and service quality. This includes clear contracts, accurate billing, fair pricing, accessible complaints processes, and formal recognition of vulnerability.

Technical Assurance focuses on performance, reliability, and efficiency. It supports improved metering and monitoring, better network performance, reliable access to services, and the long-term transition to lower-carbon heat.

Together, these foundations set clear expectations for how heat networks should operate - protecting customers while improving system performance and resilience.

Key Milestones: Ofgem & DESNZ Timeline

The latest developments, published guidance documents and guidelines have been summarised and linked in The Shortcut section of this Playbook.

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 energy centre, 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