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Heat networks regulation: implementing consumer protections

OFGEM·consultation·MEDIUM·8 Nov 2024·source document

Summary

Joint DESNZ/Ofgem consultation on consumer protection requirements that heat network operators and suppliers must comply with under the new regulatory framework. 153 responses received including consumer advocates, suppliers, metering organisations, local authorities, and leaseholders.

Why it matters

Heat networks operate as local monopolies; consumer protection has to be engineered into the regulatory framework rather than emerging from competition. The 153 responses (high for an Ofgem consultation) signal the political salience of fair pricing and metering in heat networks. Joint DESNZ/Ofgem framing is unusual; usually DESNZ sets policy and Ofgem implements.

Areas affected

distributionretail market

Related programmes

Energy Act 2023
Memo

Heat networks regulation: implementing consumer protections | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Heat networks regulation: implementing consumer protections Publication type: Consultation Publication date: 8 November 2024 Last updated: 8 August 2025 Closed date: 1 February 2025 Status: Closed (with decision) Topic: Heat networks Related consultations: Heat networks regulation consumer protection - Government response Print this page Related links Heat networks Heat networks regulation: authorisation and regulatory oversight Share the page Share on Facebook Share on Twitter Share on LinkedIn Response: published 8 August 2025 We asked The Department for Energy Security and Net Zero (DESNZ) published a joint consultation with Ofgem seeking further views on the consumer protection requirements that heat network operators and suppliers will need to comply with, as part of the regulatory framework. You said We received 153 responses to the consultation. A diverse range of stakeholders provided their views, for example this included: Heat Network Suppliers and Operators Metering organisations Consumer advocacies Trade Associations Leaseholders Local Authorities Social Housing Associations Consultancies Charities Academics Consumers We have reviewed responses and considered stakeholder views. Our joint response provides a summary of responses to each question in the consultation and a brief overview of our policy proposals in each area of the different consumer protection areas. We did The government response outlines how we plan to take the proposals forward, whilst incorporating the feedback and evidence provided by stakeholders. Where applicable, these have been fed directly into the legislation that will implement heat network consumer protections as part of the wider market framework. The consultation response can be found on the government website . Consultation: published 8 November 2024 Ofgem and the Department for Energy Security and Net Zero (DESNZ) have published a joint consultation seeking further views on the consumer protection and requirements that heat network operators and suppliers will need to comply with, as part of the regulatory framework. We are also separately consulting on our approach to authorisation, market monitoring, compliance, and enforcement. The link to this consultation can be found in the related links. Who should respond We would like to hear the views of people with an interest in heat networks and particularly welcome responses from: heat network operators and suppliers asset owners energy services companies social housing providers building and estate asset managers local authorities metering and billing agents consumer groups trade associations managing agents heat network consultants landlords heat network consumers Background The Energy Act 2023 named Ofgem as the future regulator for heat networks in Great Britain. Our most recent Forward Work Programme outlines how we intend to develop a regulatory framework for heat networks which is proportionate, in line with our duties to protect consumers, and which supports: investment market growth meeting the government’s net zero targets The focus is on areas where we require additional stakeholder views to finalise proposals, and we are seeking feedback on draft Authorisation Conditions. As part of this consultation, we are also seeking views on step-in proposals, which are measures to mitigate the risk and impact of heat network failure. Why your views matter Your feedback will help us develop new regulations to protect consumers and improve network reliability, while allowing growth in the sector. How to respond The consultation and details on how to respond can be found on the government’s website . If you would like any more information, please email heatnetworks@energysecurity.gov.uk and heatnetworksregulation@ofgem.gov.uk . Print this page Related links Heat networks Heat networks regulation: authorisation and regulatory oversight Share the page Share on Facebook Share on Twitter Share on LinkedIn Close