Consultations on new heat network regulations

As part of steps to prepare for properties to be heated by non-polluting heating systems in the future, the UK and Scottish Governments are developing legal frameworks to ensure consumers are treated fairly by heat network operators/suppliers. It is expected that in future many properties will be heated by heat networks, which typically supply hot water for heating and washing through a network of underground pipes to multiple properties.

Heat networks are sometimes referred to as communal heating, district heating or combined heat and power systems.

Most SAL members will not be heat network operators/suppliers, but if you are, you need to be aware of new regulations being developed to protect consumers.

If you fit the description below you are likely to be a heat network operator/supplier and required to comply with the forthcoming regulations.

• You supply heat to multiple premises through a single source
• You own (solely or jointly) a communal heating system which supplies heat to a building divided into flats or commercial units
• You’re a landlord on a site which has “shared ground loops”. This is the name given to a district heating network where at least two or more properties have an individual heat pump connected to a communal ground loop.

HMOs and room only lets where a single heat source supplies multiple tenants within the same flat/house will not be affected by the new regulations unless each tenant has their own self-contained unit with its own toilet, washing and cooking facilities.

Ofgem and the UK government Department for Energy Security and Net Zero (DESNZ) are currently running two different consultations on a range of proposals for the new regulations, including billing transparency, complaints and what heat network operators/suppliers will need to do to comply.

All heat network operators/suppliers will have to comply, and the proposal is for it to be phased in from April 2025 starting with consumer support and followed by registration of all heat networks and the rules starting in early 2026. The Scottish Government will also be consulting soon on a licensing and consenting regime for heat networks in Scotland.

These consultations are an important opportunity to inform the way that this is shaped, making sure the diversity of heat networks is reflected in the rules that will regulate them.

Anyone with an interest can visit the links below to respond to the consultations and also register for any of the online events Ofgem and DESNZ will be running to present summarised accounts of the consultation content to support understanding and responses.

Heat networks regulation: authorisation and regulatory oversight – Ofgem – Citizen Space

Heat networks regulation: implementing consumer protections – GOV.UK

To receive future updates on the developing regulations email heatnetworksregulation@ofgem.gov.uk