As the UK gears up for the launch date of the new regulatory framework for heat networks, a panel discussion on the Net Zero stage at Housing 2025 last week brought together local authorities, housing associations, energy professionals, and legal experts to explore the far-reaching implications of these changes.
The session opened with a video briefing from Gareth Gill, senior policy manager at Ofgem, who outlined how heat network operators and suppliers will soon need authorisation to operate, with a suite of new consumer protection obligations coming into effect. These include standards of conduct, guaranteed standards of performance, fair and transparent pricing, and safeguards for vulnerable consumers. These measures align heat networks with the wider regulated energy market.
Chris Paul, Head of Energy and Sustainability at Trowers, with nearly two decades of experience in heat network advisory, welcomed the changes, saying:
“The introduction of regulation is going to drive up standards across the board. Until now, the quality of heat networks has varied immensely across the UK. Regulation will give both consumers and landlords the reassurance that schemes are being operated to a consistent and accountable standard.”
Henrietta Cooke from Haringey Council echoed support for the changes, while offering a sobering view of the on-the-ground challenges. With over 35 communal heating sites under management, ranging from 1970s estates to new-builds, the shift to regulated monthly billing based on consumption is proving transformative, and costly.
“We’re essentially moving from being landlords to becoming utility providers,” said Cooke. “This shift demands not just new systems and processes, but also a cultural change in how we interact with residents. While we absolutely welcome the regulation, the operational lift is significant.”
Amid the concerns, the session also struck a practical and reassuring tone. “Don’t panic, start planning,” said Paul. “Many organisations are already engaging with the consultation process, and looking to change how they deal with heat networks.” The message was clear: while the path ahead is complex, support is available, and there is still time to get it right.
The panel agreed that early compliance and engagement are critical. With Ofgem’s consultation on fair pricing open until 9 July, stakeholders are encouraged to contribute.
The transition won’t happen overnight. Consumer advocacy and advice functions are already live, but the authorisation regime will begin in January 2026, followed by performance and pricing enforcement in 2027. Ofgem has committed to a phased rollout to help operators adapt, particularly those falling under regulation for the first time.
The session closed with a clear call to action: organisations must act now to prepare for a new era of accountability in the heat network sector, one built around transparency, consumer protection, and system resilience.
