Heat network compliance glossary: key Ofgem terms explained

Heat network compliance comes with its own vocabulary, much of it tied to specific authorisation conditions. This glossary defines the terms operators meet most often, in plain English, and links each one through to the guide that covers it properly. For the full set of conditions and how they are grouped, see our guide to the heat network authorisation conditions.

A to Z of heat network compliance terms

Authorisation

Permission from Ofgem to operate a heat network. Operating a heat network without authorisation after 26 January 2027 is a criminal offence. See authorisation conditions.

Deemed authorisation

Authorisation granted automatically to existing operators from 1 April 2025, allowing them to continue operating while the framework came into force.

Registration

The formal submission of verified information about your network and compliance arrangements to Ofgem, required under authorisation condition A4. See registering with Ofgem.

Authorisation conditions

The binding conditions attached to authorisation, grouped into Part A (operator obligations), Part B (consumer obligations) and Part C (operational standards). See authorisation conditions.

Operator

The party responsible for controlling, maintaining and running the heat network infrastructure.

Supplier

The party with the direct commercial relationship to consumers, including billing, contracts and complaint handling.

Nominated operator (A5)

Where more than one entity performs operational functions, the entity nominated under condition A5 as carrying primary responsibility for registration and compliance. See registering with Ofgem.

Regulatory contact

The senior person named in the digital service as the primary point of contact for Ofgem.

Market Framework Regulations 2025

The Heat Networks (Market Framework) (GB) Regulations 2025, the legislation that brings heat networks under Ofgem regulation. See the Market Framework Regulations guide.

Fair pricing (A6)

The authorisation condition requiring that prices charged to consumers are fair and that the operator can demonstrate they are fair. See fair pricing.

Cost allocation (A7)

The authorisation condition requiring that shared network costs are allocated on a fair and transparent basis. See fair pricing.

Fit and proper (A8)

The ongoing requirement that the operator remains fit and proper to hold authorisation, not only at the point of registration.

SMRI

Individuals with significant managerial responsibility who must make fit and proper declarations in the registration service.

Provision of information (A9)

The duty to give Ofgem the information it requires, when it requires it, including ongoing data reporting. See data reporting.

Standards of conduct (B1 and C1)

The standard of conduct expected towards consumers (B1) and in operating the network (C1).

Heat supply contract (B2)

The compliant supply contract operators must have in place with their consumers.

Complaints (B4)

The authorisation condition requiring a compliant complaints process, handled to Ofgem’s requirements, with unresolved complaints escalating to the Energy Ombudsman. See complaints handling.

Billing and price transparency (B6)

The authorisation condition requiring that bills and pricing information are clear, accurate and transparent. See compliant billing.

Back-billing (B7)

Limits on charging consumers for unbilled heat used more than a set period ago. See compliant billing.

Priority Services Register (B8)

A register of consumers in vulnerable circumstances, with priority services provided to those consumers.

Self-disconnection (B11)

The requirement to take steps to identify and help consumers who self-disconnect.

Social obligations reporting (B12)

The duty to report to Ofgem on how the operator is meeting its social obligations.

Consumer Welcome Pack

Information issued to consumers about their heat supply, expected as part of consumer protection arrangements.

Financial Resilience Statement (A13)

Evidence of working capital, insurance and contingency funding demonstrating the operator can meet its obligations. See the Financial Resilience Statement guide.

Supply Continuity Plan

Documented contingency and step-in arrangements to keep heat supplied if something goes wrong, including operator failure. See the Supply Continuity Plan guide.

Communal and district heating

Communal heating serves a single building with separate dwellings from a shared heat source; district heating serves multiple buildings from a central source.

Shared Ground Loop

A type of heat network that follows a separate registration pathway in Ofgem’s digital service.

Model bill

Ofgem’s billing requirements that a compliant consumer bill must meet. See compliant billing.

HNTAS

The Heat Network Technical Assurance Scheme, referenced in operational compliance and evidence.

HNMBR

The earlier Heat Network (Metering and Billing) notification regime that preceded the current Ofgem framework.

Frequently asked questions

What do the heat network authorisation condition codes mean?

The authorisation conditions are grouped into three parts. Part A conditions (A1 onwards) cover authorisation and the operator’s general obligations. Part B conditions (B1 onwards) cover the operator’s duties to consumers. Part C conditions cover operational standards. A code such as A6 or B4 identifies a specific condition within those parts.

Is a heat network operator the same as a supplier?

Not always. An operator is generally responsible for controlling, maintaining and running the network infrastructure, while a supplier has the direct commercial relationship with consumers, including billing and complaints. On many networks one organisation performs both roles, but on others the roles are split across different entities.

What is the difference between communal and district heating?

Communal heating serves a single building with separate dwellings from a shared heat source. District heating serves multiple buildings from a central source. Both are heat networks and both are in scope of Ofgem regulation if they supply heat to consumers.