Meet your obligations with heat network regulations

Posted by Ian Allan

Thursday 30th July, 2020

What are the rules and regulations around reselling electricity to residents? FREE guide

Posted by Ian Allan

There is strong interest from developers, landlords and ESCos in supplying residents with electricity to reduce the cost of their overall service offering. This is often linked to the provision of heat, where combined heat and power (CHP) plant is used. The drive for lower carbon solutions is also creating new opportunities to integrate heat and power from solar PV and heat pumps.

The sale and distribution of power is regulated, requiring a licence from Ofgem in many instances, but there are exemptions that can apply to residential schemes.

Switch2 Energy and law firm Penningtons Manches Cooper have worked together to develop a fact sheet to help heat network operators understand the practical and legal aspects of supplying electricity to residents.

The supply of electricity to a premises generally requires a licence from Ofgem. The fact sheet will cover where exemptions can apply and can offer landlords the opportunity to sell electricity to residents connected to a site’s privately operated electricity network.


This document will provide an introduction to the 4 main topics of:

  1. Resale of electricity to residents
  2. Distribution of electricity generated on site to residents and small-scale supply
  3. The question, “Do residents have the right to choose an alternative electricity supplier?”
  4. Electric Vehicle charge points

An introduction to generating and selling electricity at residential developments without an Ofgem licence - Download below.

Fact sheet CTA-1


Ian Allan

Head of Market Strategy

Areas of expertise:

• Industry challenges and issues • Heat Network Regulations • Smart metering

• Innovation in heat networks • Tariff setting • Energy prepayment • Digital innovation

• Data management • Automated Meter Reading (AMR) • Heat Interface Units

• International district heating • Compliance & best practice standards

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