Heat networks at a turning point: how to prepare for Ofgem’s new rules

The U.K. is scaling heat networks from roughly 3% to 20% of building heat supply by 2050. That’s because heating our homes and buildings is responsible for a big slice of national carbon emissions, and many properties are hard to decarbonise one boiler at a time. Heat networks, which are shared systems that deliver heat from a central source to many homes, offer a safer, cleaner, and lower cost alternative to natural gas. New rules arriving between 2026 and 2027 will shape how these networks are run, with a strong focus on performance and fair treatment for customers. 

Heat networks, in brief 

Instead of every flat or house having its own gas boiler, a heat network produces hot water in one place and sends it through insulated pipes to multiple buildings. Each home has a compact heat exchanger about the size of a small boiler, but no flame, no flue and no in‑home combustion. The heat used can come from many sources — large heat pumps, energy from waste, or waste heat from industry. As the electricity grid gets greener, these networks cut both energy use and carbon emissions compared with conventional gas heating, especially in dense urban areas. 

Why the rules are changing 

Government legislation in recent years has paved the way for a new regulatory system overseen by Ofgem. The goal is straightforward: make sure customers get reliable heat, clear bills and fair prices, and ensure networks deliver the real‑world performance and carbon savings they promise. To do that, the rules emphasise transparent data, regular monitoring and simple routes for customers to raise issues. 

Key dates at a glance 

• 1 April 2025: New consumer advice services launch; an interim “deemed authorisation” period begins for existing networks. 
• 27 January 2026: Ofgem’s powers take effect and the main rules start to apply. 
• Spring 2026 to 26 January 2027: Existing networks must register with Ofgem and provide basic information about their system and customers. 
• 26 January 2027: Registration deadline; after this, new networks must apply for authorisation before operating. 

What this means in practice 

If a landlord or managing agent supplies heat to more than one home through a shared system, they can be deemed to be running a heat network. Existing networks are temporarily “deemed authorised,” but they still need to register by January 2027. Networks with several parties involved must name a single point of contact for Ofgem, so there is clear accountability. From April 2025, customers can take unresolved complaints to the Energy Ombudsman. Registering early shows readiness to regulators and reassures residents that robust processes are in place. 

Raising performance and proving it 

A new technical scheme will set out what good performance looks like and how to check it. New networks will need to meet the standards from day one; older systems will have time to improve. Crucially, the scheme shifts the focus from promises to proof. Where sensible and cost‑effective, networks will need to fit meters, gather accurate data and report how they are doing. There will be room for older systems to improve over time, but penalties for persistent poor performance can be significant. The upshot: clean, reliable data is becoming essential, not just for compliance, but to build confidence with residents and investors. 

Clear roles and simple governance 

Good service depends on knowing who is responsible for what. In many cases, the building owner is the “supplier,” while managing agents and maintenance providers run day‑to‑day operations. Contracts should make responsibilities crystal clear, including who controls the data. Leases and service agreements should be updated to reflect transparency, data‑sharing and how changes in the law will be handled. Each network should have a named regulatory contact and a straightforward playbook for incident reporting, data quality and resident communications. 

Fair bills and support 

The rules raise the bar on fairness. Bills should be based on actual usage at least once a year and issued quarterly if sent electronically, or otherwise at least every six months. Where found to be practical and good value, individual meters should be installed; where not, costs must be shared using clear methods that are explained to residents. Protecting vulnerable customers is also a core duty: operators should keep up‑to‑date records and make sure their policies, staff training and communications take account of people who need extra support. 

What to do now: a simple plan 

• Map where you supply heat and identify which sites are in scope. 
• Clarify responsibilities and nominate a single regulatory contact. 
• Check the condition and efficiency of equipment and plan targeted upgrades. 
• Put basic data processes in place so you can measure, learn and improve. 
• Review tariffs and resident communications for clarity and fairness. 
• Register with the Energy Ombudsman and set clear internal response times for complaints and outages. 

De‑risking growth 

Heat networks can help the U.K. cut emissions and keep homes warm more efficiently, but only if they perform well and treat customers fairly. The new rules are pushing the sector in that direction. Organisations that put good data, clear roles and resident‑friendly billing at the heart of their approach will be better placed to avoid penalties, attract investment and earn trust. 

How Trio can help 

Trio guides heat network owners and operators from assessment of current metering technology selection to metering system design, procurement and commissioning, making schemes HNTAS‑ready, and producing billing data you can use to invoice tenants. We assess regulatory obligations and align contracts, tariffs and data‑sharing with Ofgem’s authorisation conditions. On the ground, we provide recommendations and solutions for metering installations/upgrades as well as setting up KPI baselines and reporting. The result is a compliant, efficient heat network with clean data, clear accountability, and a credible plan to scale.