What are the Ofgem heat network authorisation conditions?

Ofgem authorisation conditions are the specific requirements that heat network operators must satisfy to obtain and maintain authorisation under the Heat Networks (Market Framework) (GB) Regulations 2025. Every operator supplying heat to consumers in Great Britain must meet these conditions by 26 January 2027. This guide covers each condition area and the evidence operators need to prepare.

Consumer protection conditions

Operators must demonstrate arrangements that protect heat consumers. This includes transparent billing that meets Ofgem’s model bill requirements, a formal complaints procedure with escalation to the Energy Ombudsman after eight weeks, a Consumer Welcome Pack issued to every new consumer at first supply, and a Priority Services Register identifying and supporting vulnerable customers.

These are not optional policies – they are conditions of authorisation. Ofgem can enforce them and, in serious cases, revoke authorisation.

Financial resilience conditions

Operators must show they can sustain operations financially. This means documenting adequate working capital, appropriate insurance cover, emergency funding arrangements, and any relevant regulatory history. Ofgem needs confidence that an operator will not become insolvent and leave consumers without heat supply.

The evidence for this is typically a Financial Resilience Statement – a structured document setting out the operator’s financial position against Ofgem’s expectations. See the Financial Resilience Statement product for a pre-structured version, or read the Financial Resilience Statement guide.

Supply continuity conditions

Operators must have contingency arrangements for maintaining heat supply during disruption. This covers planned maintenance, emergency response, communication with consumers during outages, and critically, step-in procedures – what happens if the operator can no longer supply heat.

A Supply Continuity Plan documents these arrangements. It should include named contacts, escalation procedures, and defined timescales for consumer notification. The Supply Continuity Plan provides the full structure. See also the Supply Continuity Plan guide.

Data reporting conditions

Ofgem requires periodic reporting from authorised operators. Quarterly submissions cover consumer numbers, new connections, and complaints data. Annual submissions cover financial performance, interruptions, PSR usage, and consumer satisfaction. The specific data fields and submission deadlines are set by Ofgem and may evolve.

An Ofgem Data Reporting Tracker helps operators prepare and track submissions against the required schedule.

Technical standards (HNTAS)

The Heat Network Technical Assurance Scheme (HNTAS) sets phased requirements for network condition, metering accuracy, water treatment, and supply reliability. Not all requirements apply from day one – they phase in over time. But operators should be aware of what is coming and start assessment early.

Specialist registers such as the HNTAS Assessment Register, VDI 2035 Water Treatment Register, and TR1 Metering Compliance Register support this area.

Scotland

Scottish operators face dual compliance: the Heat Networks (Scotland) Act 2021 licensing regime and the Market Framework Regulations 2025. The authorisation conditions under the Market Framework apply across Great Britain, but Scottish operators must also satisfy the separate licensing requirements.

Preparing your evidence

Start by mapping the conditions against your current documentation. Many operators find significant gaps when they first assess their position. The most common gaps are in consumer protection (no formal welcome pack, no PSR, no compliant bill format) and financial resilience (no structured statement beyond management accounts).

For authoritative guidance, refer to Ofgem’s heat networks authorisation page. Heat Network Compliance Hub offers all 13 documents needed for authorisation, individually or in bundles from £495. The Compliant Bundle (£895) covers all eight core documents.