Heat networks regulation: fair pricing protections

Heat networks regulation: fair pricing 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: fair pricing protections Publication type: Consultation Publication date: 30 April 2025 Closed date: 10 July 2025 Status: Closed (with decision) Topic: Heat networks Show all updates Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn 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 Ofgem response to Heat networks regulation - fair pricing protections.pdf [PDF, 880.93KB] Non-confidential responses to Heat networks regulation - fair pricing protections.zip [ZIP, 19.35MB] Redacted responses to Heat networks regulation - fair pricing protections.zip [ZIP, 968.01KB] 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 Heat networks regulation: fair pricing protections consultation [PDF, 1.78MB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn All updates 29 September 2025: published outcome of the consultation Close