Heat networks moved into regulation on 27 January 2026, when Ofgem’s authorisation conditions took effect. Existing operators are deemed authorised for now, but that position ends on a fixed date.
Verification
- Verified as at:
- Source:
- Energy Act 2023; Heat Networks (Market Framework) (Great Britain) Regulations 2025; Ofgem heat networks authorisation conditions
- Last reviewed by:
- Omnium
Figures in this sheet were current at the verification date above. Regulated charges reset each April. If you are relying on a figure, check the source or ask us.
Designed A4 fact sheet, ready to print or circulate.
The deadline
Status: LawExisting heat network operators and suppliers must register with Ofgem by 26 January 2027. Until then they are deemed authorised.
Operating a heat network without registration after that date is a criminal offence. This is not a compliance formality with a penalty attached, it is a different category of exposure.
For breach of the authorisation conditions, Ofgem can impose the higher of £1m or 10 per cent of turnover.
What the regulations actually are
Status: LawThe governing instrument is the Heat Networks (Market Framework) (Great Britain) Regulations 2025, made under the Energy Act 2023. Ofgem began regulating on 27 January 2026 when the authorisation conditions took effect.
The regulations are 2025, not 2026. Some published material cites them as 2026, which is the date regulation started rather than the date of the instrument.
What is proposed and is not yet in force
Status: ProposedThe Heat Network Technical Assurance Scheme would mandate minimum technical standards. The consultation closed on 15 April 2026 and draft standards have been published, but the scheme is not yet in regulation and is expected from 2027.
Plan for it. Do not treat it as a current requirement, and be wary of anyone selling against it as though it were.
What registration involves
Registration is an application, not a notification. It asks who operates the network, who supplies the heat, how many consumers are served and how the network is run.
The practical difficulty for most operators is not the form. It is that the information the form asks for has never been assembled in one place, particularly on estates where the network was inherited with the building.
Four things worth establishing now:
- Whether you are the operator, the supplier, or both, because the obligations differ.
- How many consumers the network serves, and whether any are domestic.
- What metering and billing arrangements are actually in place.
- Who holds the technical records, and whether they still exist.
Grant funding
Government grant funding has been available for heat network efficiency improvements in England and Wales, run in successive rounds with closing dates.
We do not publish scheme values or round dates here, because rounds open and close and a page reviewed annually will be wrong for most of the year. Ask us and we will tell you what is open.
Related sheets
- ESOS Phase 4
Who qualifies for the Energy Savings Opportunity Scheme on 31 December 2026, what Phase 4 requires, and why the group rule catches organisations out.
- Streamlined Energy and Carbon Reporting
Which companies and LLPs must disclose energy and emissions in their annual accounts, what has to be in the disclosure, and where SECR usually goes wrong.
- The net zero roadmap
The order to decarbonise a building or portfolio in, and why measuring and reducing before generating and offsetting costs less.
Take this sheet into a meeting
Heat network compliance is available as a designed A4 fact sheet, dated and set for printing or circulation.
If this sheet raises a question about your own sites, speak to us.