Ofgem authorisation deadline: 26 January 2027 – most operators haven't started

What is heat network compliance?

A complete guide for operators navigating Ofgem authorisation under the Market Framework Regulations 2025.

Heat network compliance refers to the regulatory requirements that operators in Great Britain must meet under the Heat Networks (Market Framework) (GB) Regulations 2025. These regulations bring heat networks under Ofgem’s oversight for the first time, requiring operators to obtain authorisation, protect consumers, maintain financial resilience, and report on operations.

The deadline for Ofgem authorisation is 26 January 2027.

Why heat networks are now regulated

Until 2025, heat networks operated largely without formal regulatory oversight. Unlike gas and electricity, heat network consumers had limited statutory protections. The Energy Act 2023 gave Ofgem power to regulate heat networks, and the Market Framework Regulations set out the requirements.

The key driver is consumer protection. Heat network consumers are captive – they cannot switch supplier. The regulations ensure fair pricing, transparent billing, reliable supply, and access to complaints escalation.

What the regulations require

Authorisation

All operators must apply for and obtain authorisation from Ofgem, demonstrating compliance with conditions covering consumer protection, financial resilience, supply continuity, and data reporting.

Consumer protection

Transparent billing, complaints procedure (Energy Ombudsman after 8 weeks), welcome pack at first supply, and Priority Services Register for vulnerable consumers.

Financial resilience

Adequate working capital, insurance, emergency funding – documented in a Financial Resilience Statement.

Supply continuity

Arrangements for maintaining supply during disruption, including step-in procedures – documented in a Supply Continuity Plan.

Data reporting

Quarterly and annual reports to Ofgem covering consumer numbers, complaints, interruptions, PSR usage.

Technical standards (HNTAS)

Phased requirements for metering accuracy, water treatment, supply reliability, and consumer outcomes.

What documents do operators need?

Most operators need: a Heat Network Operator Readiness Pack, Financial Resilience Statement, Supply Continuity Plan, Model Compliant Bill, Consumer Welcome Pack, Priority Services Register, Ofgem Data Reporting Tracker, and Staff Training Register. Specialist registers may also be needed depending on network profile.

Scotland

Scottish operators face dual compliance: the Heat Networks (Scotland) Act 2021 licensing regime plus the Market Framework Regulations 2025.

Getting started

For authoritative guidance, visit Ofgem’s heat networks section.

Heat Network Compliance Hub offers professional documents for this process. View all products or see bundle pricing.

Ready to prepare for authorisation?

13 professional compliance documents, one-time purchase.