What to expect when you’re expecting Ofgem regulations
A plain-English guide for heat network owners (housing associations, local authorities and developers)
If you own or oversee a residential heat network, 2026 is a big year. Heat networks are moving from a lightly regulated space advocated by the Heat Trust to something much closer to a “traditional utility”. This means, clearer rules, stronger customer protections, and new requirements on the organisations responsible for supply and operation.
In this blog, we explore the practicalities of what’s changing and what to prioritise first, highlighting why regulation is a positive step as Ofgem begins regulating residential heat networks.
First: what even is happening on 27 January?
From 27 January 2026, Ofgem’s new heat networks regulations begin coming into effect and Ofgem starts regulating heat networks in Great Britain (England, Scotland and Wales).
The goal is very simple: heat network customers should get clearer information, fairer treatment, and better routes to resolve problems, very similar expectations we as users are used to seeing in gas and electricity.
If you’re a housing association, local authority, private residential building owner, or you work with an ESCO/managing agent, you may fall into scope depending on your role in supplying heat and/or operating the network.
Key times and dates you need to know
Headline Ofgem milestones (and what they mean in practice):
- 1 April 2025 – Heat network consumer advice and advocacy services launched. (This is the “support and signposting” layer for customers.) (Ofgem)
- 1 April 2025 to 26 January 2027 – Authorisation period: existing suppliers/operators are generally treated as deemed authorised during the transition (so you can continue operating while the regime beds in). (Ofgem)
- 27 January 2026 – Launch of regulations: Ofgem begins regulating heat networks and new consumer protection rules start to apply. (Ofgem)
- Spring 2026 to 26 January 2027 – Registration window: organisations with deemed authorisation must register heat networks via Ofgem’s digital service by 26 January 2027. (Ofgem)
- Late 2026 – Reporting to begin later in 2026, with data collection expected to be retrospectively backdated to April 2026.
Translation: you don’t need to have everything perfect on day one, but you do need a plan, clear ownership internally, and the basics in place early so registration and compliance doesn’t become a last-minute scramble.
What’s changing (in plain English)
1) Ofgem will expect clearer accountability
Residential heat networks often have multiple stakeholders involved: the building owner, operator, billing agent, managing agent, ESCO and maintenance providers.
Under the new regulatory regime, Ofgem recognises two regulated roles:
- The Heat Network Operator (the organisation responsible for running and maintaining the network), and
- The Heat Supplier (the organisation responsible for supplying heat to customers including customer communications and billing in many cases).
- In most residential heat networks, the building owner is likely to be both the Operator and the Supplier (even if parts of delivery are outsourced). The direction of travel is simple: someone must be clearly responsible, and Ofgem must be able to identify who that is, which networks they are responsible for, and how to contact them.
- What this means for owners: even if you outsource day-to-day running, you’ll want confidence that your contracts, reporting lines and governance make it obvious who does what, who holds key data, and who is accountable if something goes wrong.
2) Stronger customer protections become the baseline
The new framework introduces rules designed to protect customers including expectations around how customers are treated, the information they receive, and what happens when service falls short. This includes areas like standards of conduct, fair pricing, billing and transparency, complaints handling, vulnerability, disconnection safeguards, and measures to reduce the impact of network failure.
Alongside these protections, there are also new requirements around registration and reporting. Importantly, existing heat suppliers and operators will move through a transition period with automatic (deemed) authorisation, so you can continue operating while you get the required information together and prepare to register your heat networks within the required window.
You don’t need to memorise every detail to get started, but customers should have:
- More rights to clear information (especially around pricing, billing and changes)
- A clear, transparent complaints route.
- Greater protections for customers who are vulnerable, including those at risk of disconnection, with clear expectations around the support suppliers/operators must provide.
- Clear reporting requirements to evidence compliance with Priority Services Register obligations and demonstrate there are no indications of poor customer outcomes.
3) “Technical requirements” are coming and it will be phased
Alongside customer protections, government is introducing technical requirements and a Heat Network Technical Assurance Scheme (HNTAS), with implementation intended to be phased over time. The consultation on HNTAS is now open until 15 April, and the proposed policies can be found on the government website.
What this means for owners: even if your immediate focus is governance and customer-facing changes, it’s worth starting a conversation now about asset condition, performance, metering, and what evidence you can produce about how your network is run.
What to prioritise right now (your practical checklist)
If you do five things first, make them these:
1) Confirm your role: are you a “supplier”, an “operator” or both?
In heat networks, “owner” doesn’t always equal “operator”, and the party that bills the customer isn’t always the party that runs the plant.
Map it simply:
- Who supplies heat to residents (contractually and in practice)?
- Who operates/maintains the network?
- Who bills, sets tariffs, and handles complaints?
This clarity makes everything else (registration, compliance, comms) much easier.
2) Get “registration-ready” before Spring 2026
Registration runs Spring 2026 to 26 January 2027, via Ofgem’s digital service, which is still under development.
Start gathering the basics now so it’s not painful later:
- network locations and scope (what buildings/customers are connected),
- who does what (owner/operator/billing agent),
- key operational contacts
- high-level customer numbers and customer types (residential/non-domestic, mixed sites).
Even if requirements evolve, having a clean baseline dataset will save weeks later.
3) Tighten up customer communications (especially billing and changes)
If you only improve one thing quickly, make it clarity.
Operators and Owners of residential heat networks should be asking themselves:
- Are bills easy to understand (what people pay, why, and when)?
- Is it clear how tariffs are set and updated?
- Do customers know how to raise an issue and what happens next?
4) Make complaints and vulnerability support real (not just a policy)
Under a more regulated regime, you want consistent handling of:
- complaints (including timescales, signposting and escalation),
- support for residents in vulnerable circumstances,
- protections around disconnection and debt processes.
This is about protecting customers and protecting your organisation’s reputation and operational risk.
5) Stress-test your “what if the network fails?” plan
Heat network failure can be high impact, especially in winter and for vulnerable residents.
Start with:
- how residents are informed,
- how issues are logged and tracked,
- what temporary measures exist if heat/hot water is interrupted.
“Step-in” and mitigating the impact of network failure are part of the policy thinking in the government response.
What good looks like by January 2027
By the time the registration window closes on 26 January 2027, you want to be able to confidently say:
- “We know exactly which heat networks we’re responsible for and can report on it.”
- “We have the processes and procedures required”
- “We understand what data is needed to provide the quarterly reporting”
- “We have clear lines of responsibility allocated through supplier and operator across operations, billing, and customer service.”
- “Our customer information and complaints route are clear, consistent and help resolve their queries.”
- “We can evidence how we set prices, communicate changes, and support vulnerable residents.”
- “We have a credible plan for outages and performance issues.”
- “We are preparing for technical requirements as they phase in.”
Next step
If you’re a residential building owner with heat networks, the best approach is simple:
get clear on responsibilities, get registration-ready early, and fix the customer-facing basics first.
We’ve pulled together a Resource Hub with checklists, FAQs, and practical guidance, plus a webinar series to walk through what changes and what to do next.
