Heat networks regulation: authorisation conditions and guidance on measures to mitigate the risk and impact of financial failure

Heat networks regulation: authorisation conditions and guidance on measures to mitigate the risk and impact of financial failure | 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: authorisation conditions and guidance on measures to mitigate the risk and impact of financial failure Publication type: Consultation Publication date: 8 August 2025 Last updated: 13 January 2026 Closed date: 20 September 2025 Status: Closed (with decision) Topic: Heat networks, Financial resilience Show all updates Print this page Related links Heat networks regulation: authorisation conditions | consultation Heat networks regulation: implementing consumer protections | consultation Heat networks regulation: consumer protection guidance | consultation Heat networks regulation: regular data reporting guidance | consultation Share the page Share on Facebook Share on Twitter Share on LinkedIn Our consultation on measures to mitigate the financial failure of heat networks in England, Scotland and Wales (Great Britain). These proposals include the scope of financial provisions and continuity arrangements for heat networks and the regular ongoing financial monitoring of the sector. Details of outcome We received 31 responses from a range of stakeholders including: consumer advocacy groups energy network operators energy suppliers housing associations local authorities metering and billing providers property management companies trade associations In general, stakeholders were supportive of our proposed authorisation conditions and their scope. Whilst stakeholders were supportive of guidance, we did receive feedback on potential changes that could be included prior to their publication, as well as additional requests for support such as worked examples. We have decided to proceed with the overall approach proposed in the consultation, with changes made to reflect stakeholder feedback. Read the authorisation conditions on our electronic public register Read the Heat Networks regulation: financial resilience guidance Read the full outcome Read the full outcome of this consultation in our online consultation Original consultation Who should respond The consultation will be of interest to the heat network industry, including: consumer advocacy groups industry trade associations energy supply companies local authorities housing associations managing agents, property management companies and developers landlords building owners heat network consumers The proposals on recovering costs from a Special Administration Regime (SAR) will also be relevant to the gas and electricity sector, including network companies and supply licensees. Background The Energy Act 2023 named Ofgem as the 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 This consultation builds on the approaches proposed in: our 2023 joint consultation with the Department for Energy and Net Zero (DESNZ) on heat networks regulations for consumer protection the 2024 government response to that consultation the contents of the Heat Networks (Market Framework) (Great Britain) Regulations 2025 our 2024 joint consultation with DESNZ on heat networks regulations for implementing consumer protections the government response to that consultation 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. Print this page Related links Heat networks regulation: authorisation conditions | consultation Heat networks regulation: implementing consumer protections | consultation Heat networks regulation: consumer protection guidance | consultation Heat networks regulation: regular data reporting guidance | consultation Share the page Share on Facebook Share on Twitter Share on LinkedIn All updates 13 January 2026 added links to Heat Networks regulation: financial resilience guidance and the authorisation conditions on our electronic public register 3 November 2025 added details of outcome and link to outcome document on Citizen Space Close