Ofgem commences formal role as regulator for heat networks

As of 27 January 2026, Ofgem is now the regulatory body for heat networks across Great Britain. This will therefore have implications for any SFHA members who currently, or plan to operate and/or supply thermal energy to consumers on a heat network. This includes communal heating systems which supply heat to residents within the same building as well as larger scale district heating schemes.   

Existing heat network operators and suppliers are advised to familiarise themselves with the obligations set out in Ofgem’s new authorisation conditions. This has been supported with series of guidance documents covering registration, consumer protection, fair pricing and cost allocation, and financial resilience.

The Heat Network Technical Assurance Scheme (HNTAS) is also been developed and will be phased in over time, with a planned launch in 2027. UK Government is currently consulting on proposals for HNTAS with responses due by 15 April 2026.

Important dates:

• Authorisation of heat networks (1 April 2025 to 26 January 2027)

All heat networks operating before January 2027 will be automatically authorised. This is called ‘deemed authorisation’. After this period, authorisation will be granted by application to Ofgem. 

• Launch of regulations (27 January 2026)

The regulations for heat networks will start to come into effect from 27 January 2026.  From this date, heat networks suppliers and operators will need to comply with these regulations, which introduce new rules to protect customers.

• Registration (Spring 2026 to 26 January 2027)

Operators of heat networks with deemed authorisation must register with us using the heat networks digital service by 26 January 2027. This is expected to be available from April 2026.

If you haven’t done so already, you can also register with the Energy Ombudsman’s heat networks supplier scheme and sign up to Ofgem’s distribution list at heatnetworksregulation@ofgem.gov.uk to receive relevant updates.

Further information can be found on our heat networks resource page (login required) and our member working group continues to meet regularly – please get in touch with cdove@sfha.co.uk if you would like to join.