Heat networks regulation: penalty policy
- Publication type:
- Guidance
- Publication date:
- Topic:
- Heat networks, Compliance and enforcement
- Subtopic:
- Enforcement
Policy on financial penalties and consumer redress for businesses operating in the heat networks sector.
The penalty policy statement explains how Ofgem may use its statutory powers to impose financial penalties on businesses operating in the heat networks sector when they fail to meet their regulatory obligations. It sets out the purpose of penalties, the principles that guide our penalty decisions, the factors we take into account when determining whether a penalty is appropriate and how that penalty is calculated.
The document outlines the types of enforcement outcomes that may follow a contravention, including financial penalties and consumer redress, and how these measures support effective regulation.
The purpose of the penalty policy statement is to provide clarity and transparency for regulated businesses and stakeholders. By clearly setting out how penalty decisions are made, the policy helps ensure that enforcement outcomes are fair, proportionate and consistent, and that they deter noncompliance across the heat networks sector.
Together with the enforcement guidelines, the penalty policy forms a core part of the framework that supports a well-regulated, consumer focused heat networks market.