Heat networks regulation: enforcement guidelines and penalty policy

Details of outcome

We asked for views on:

• Heat Networks enforcement guidelines
• Heat Networks penalty policy
• the potential use of fixed penalties

The consultation asked stakeholders for views on whether our proposed Heat Network enforcement guidelines and penalty policy clearly set out our approach to enforcement and accurately reflect the policy intent we have previously communicated. It also invited feedback on the potential use of Fixed Penalties and specific drafting considerations.

We received 33 responses from a range of stakeholders.

The responses received broadly agreed with the proposed approach, with constructive feedback highlighting areas for clarification to be addressed in guidance.

The final enforcement guidelines and penalty policy have now been published, and they will apply alongside the wider heat networks regulatory framework as it operates.

Read the full outcome

Read the full outcome in our online consultation. 

• Heat networks regulation: enforcement guidelines
• Heat Networks regulation: penalty policy

Original consultation

Who should respond 

We would like views from people with an interest in heat networks, and particularly welcome responses from:  

• heat network operators and suppliers
• landlords
• housing providers
• asset owners
• consumer groups
• energy services companies
• managing agents
• metering and billing agents
• trade associations
• heat network consumers 

Background

Ofgem has new enforcement powers to regulate heat networks in Great Britain under: 

• the Energy Act 2023
• the Heat Networks (Market Framework) (Great Britain) Regulations 2025 

In our authorisation and regulatory oversight decision we indicated our overall approach to enforcement and that we would consult on our enforcement guidelines and penalty policy. We are now consulting on our proposed approach to using these powers, including how we will investigate breaches and apply financial penalties or consumer redress orders.  

Our proposals are informed by our experience regulating gas and electricity and are designed to promote good practice and deter poor conduct.

Why your views matter

Your feedback will help us shape a fair and effective enforcement framework for heat networks. It will ensure our approach reflects the needs of consumers, operators, and other stakeholders in this evolving sector.