Heat network compliance: frequently asked questions

This page brings together the questions operators ask most often about heat network compliance and Ofgem authorisation. Each answer is a short summary; follow the link in each one for the full guide.

Authorisation and registration

Is registration the same as authorisation?

No. Authorisation was granted automatically (deemed authorisation) to all operators from 1 April 2025. Registration is the formal submission of information about your network and compliance arrangements to Ofgem. It is required under authorisation condition A4 and must be completed by 26 January 2027. See registering with Ofgem.

Do I need to register each heat network separately?

Yes. Each heat network must be registered individually. If you operate multiple networks, for example several communal systems across a residential portfolio, each one requires its own registration entry in the digital service. See registering with Ofgem.

What is a regulatory contact?

The regulatory contact is the most senior person in your organisation with responsibility for heat networks. They are named in the digital service and become the primary point of contact for Ofgem. You can change the regulatory contact in future if needed. See registering with Ofgem.

Deadlines and penalties

What is the deadline for heat network compliance?

Every heat network operator supplying heat to consumers in Great Britain must be authorised by Ofgem by 26 January 2027. After that date, operating without authorisation is a criminal offence under the Energy Act 2023 and the Heat Networks (Market Framework) (Great Britain) Regulations 2025. See the authorisation conditions.

What happens if I miss the January 2027 deadline?

Operating a heat network without registration after 26 January 2027 is a criminal offence under the Heat Networks (Market Framework) (GB) Regulations 2025. Ofgem also has powers to impose financial penalties of up to 10% of turnover or £1 million, whichever is higher. See registering with Ofgem.

Scope and exemptions

Does my communal heating system need to register?

Almost certainly, unless a specific exemption applies. A building with a communal heating system serving separate dwellings is very likely in scope, even where the operator has never thought of itself as an energy supplier. Do not assume exemption without a formal review, and treat the network as potentially in scope until assessment confirms otherwise. See registering with Ofgem.

What is outside the scope of the regulations?

Typical exclusions can include certain single converted buildings with a heat source of 45kW or less, third-party waste heat producers that do not operate the consumer-facing network, and self-supply arrangements where heat is not supplied to external consumers. Edge cases are common, so no operator should assume exemption without a formal review. See the Market Framework Regulations guide.

The authorisation conditions

What are the heat network authorisation conditions?

They are the binding conditions attached to authorisation, published by Ofgem. They are grouped into three parts: Part A covers authorisation and the operator’s general obligations, Part B covers duties to consumers, and Part C covers operational standards. Meeting them requires documented evidence, not just operational practice. See the authorisation conditions. Operators who want that evidence held in live, append-only registers mapped to each condition can use the AXIS compliance portal.

What does Part B of the conditions cover?

Part B covers the obligations operators owe to consumers. It includes standards of conduct, heat supply contracts, contract change notifications, complaints handling, consumer assistance and advice, billing transparency, back-billing limits, the Priority Services Register, payment difficulties, prepayment meters, self-disconnection, and social obligations reporting. See the authorisation conditions.

What is the Priority Services Register?

The Priority Services Register is the condition that requires operators to maintain a register of consumers in vulnerable circumstances and to provide priority services to those consumers. It is one of the conditions most commonly found to be unmet on first assessment, because it requires a formal register and active identification of eligible consumers, not just a policy stating intent. See the authorisation conditions.

Consumer obligations

What makes a heat network bill compliant?

A compliant bill meets Ofgem’s billing and price transparency requirements, so that bills and pricing information are clear, accurate and transparent. This applies whether you bill consumers directly or through software, and it works alongside the fair pricing condition. See compliant billing.

What is fair pricing under the Ofgem regime?

Fair pricing is authorisation condition A6. It requires that the prices you charge consumers are fair and that you can demonstrate they are fair. The related condition A7 requires that shared network costs are allocated on a fair and transparent basis. Fair pricing is an evidence obligation as much as a pricing one. See fair pricing.

What must heat network complaints handling do?

Complaints handling is authorisation condition B4. It requires a documented complaints process with defined timescales. The consumer complains to the operator first; the operator has up to 8 weeks to resolve the complaint or issue a deadlock letter, after which the consumer can escalate to the Energy Ombudsman, whose decision binds the operator but not the consumer. Operators must be registered members of the Energy Ombudsman scheme. See complaints handling.

Documents and evidence

What documents do I need before I register?

You will need a Consumer Welcome Pack, a Priority Services Register, a Financial Resilience Statement, a Supply Continuity Plan, and billing arrangements that meet Ofgem’s model bill requirements. These should be in place before you begin the registration process, not assembled during it. See document responsibilities and the registration guide and checklist.