Countdown to the launch of new regulatory rules for heat networks

On 27 January 2026, new consumer protection rules will be formally launched to allow Ofgem to begin regulating heat networks in Great Britain (England, Scotland and Wales). This follows the introduction of advice and advocacy services for heat network consumers which began in April 2025.

Over time, consumers should expect a more consistent standard of service across the sector. They will also have a clear route to hold operators and suppliers accountable if their heat network fails to meet these standards.

What regulation means for heat network operators and suppliers

We expect suppliers and operators to treat all their customers fairly, especially those in vulnerable circumstances. This includes ensuring fair treatment, transparent information, reliable service and fair prices. From Spring 2026 suppliers and operators can register on a new digital service which Ofgem will use for regulatory engagement.

The challenges

We expect that some heat network operators and suppliers will face challenges in being fully compliant with all the new rules straight away given the diversity covering not only a wide range of operators and suppliers, but also in terms of scale, age and characteristics. We also know that the challenges for reaching compliance and the steps needed to amend and improve practices will be different across the variety of different heat networks. We therefore encourage an approach that focuses on identifying and improving consumer outcomes in the first instance.

Working together on compliance

We want to work with the heat network sector to improve outcomes for consumers and intend to work collaboratively with suppliers and operators during the first year of regulation.

This will include developing assistive tools and materials with the input from stakeholders we’ve received through consultations and engagement.

Our approach to compliance will be flexible, with an initial focus on working with the sector to embed the new rules. We will apply compliance and enforcement when it is proportionate, for instance, if we see examples of significant detriment to consumers, especially vulnerable consumers.

We expect operators and suppliers that do need to address any issues to act quickly and proactively to put things right.

Prepare now

Many heat network suppliers and operators already provide their customers with the level of service we expect, but it is important that all heat networks are preparing to comply with these new rules.

We also recognise that the supply and operation of a heat network is often one part of a broader housing service being provided. In these instances, the authorised persons will be subject to both our Authorisation Conditions and existing housing legislation.

In preparation for regulation, we encourage all heat network suppliers and operators to join the Energy Ombudsman Heat Network Supplier scheme. This will make sure that unresolved disputes with consumers are handled without confusion or delay.

If you would like to stay up to date about how we will be working with heat networks, including supporting activities we will be running, you can join our distribution list by emailing us on heatnetworksregulation@ofgem.gov.uk.