Heat networks regulation: fair pricing protections
- Publication type:
- Consultation
- Status:
- Closed (with decision)
- Publication date:
- Closed date:
- Topic:
- Heat networks
- Industry sector:
- Supply and Retail Market
Details of outcome
We asked for your views and feedback on our proposals to further develop a fair pricing framework for heat networks. We consulted on various proposals relating to:
- the fair pricing principles
- cost allocation
- data collection
- profitability analysis
- benchmarking approach
- price investigations
We received 90 responses from a range of stakeholders.
After careful analysis, we have published our response on this webpage. The publication of our response is followed by our consultation on the fair pricing principles guidance and cost allocation guidance.
Read the full outcome
Original consultation
Consultations description
We are consulting on proposals for the structure, objectives and principles of a fair pricing framework for heat networks.
We are also consulting on:
- a fairness test to help us apply the framework effectively and consistently
- cost allocation proposals
- analytical methods for price and profit comparisons
- options for publishing price data centrally
- our approach to price investigations
Who should respond
We would like views from people with an interest in heat networks, and particularly welcome responses from:
- heat network operators
- heat network suppliers
- energy services companies
- housing providers
- consumer groups
- asset owners
- metering and billing agents
- trade associations
Background
The Energy Act 2023 named Ofgem as the regulator for heat networks in Great Britain.
Our Forward Work Programme outlines the work we are doing in 2025 and 2026, including our ongoing preparations for our new regulatory responsibilities for heat networks and the commencement of the new regime in January 2026. We are developing a proportionate regulatory framework which aims to protect consumers, while supporting investment in the sector and government targets for net zero.
The focus of this consultation is to provide further details of our proposed heat networks pricing protections. This builds on the approaches included in:
- the joint Department for Energy Security and Net Zero (DESNZ) and Ofgem Heat networks regulation: consumer protection consultation, published in 2023
- the government response to that consultation
- the joint DESNZ and Ofgem Heat networks regulation: implementing consumer protections consultation, published in 2024
- the contents of the Heat Networks (Market Framework) (Great Britain) Regulations 2025 Statutory Instrument (HNMFGBR SI)
Why your views matter
Your feedback will help us develop a framework that ensures customers pay a fair and transparent price for a reliable supply of heating. It will also help us make sure the framework is proportionate and supportive of investment and market growth.
How to respond
The consultation closed on 9 July 2025.
Consultation documents
All updates
The outcome of our fair pricing protections consultation was published on 29 September 2025.