Heat Networks are Being Regulated – What Does This Mean?

Further to the Heat Metering and Billing Regulations introduced in 2014, the government is now commencing regulation of heat networks in the UK. The legislation to regulate heat networks is under the “Energy Act 2023” and is called the “Heat Network Regulations". 

 

As with the electricity and gas markets, Ofgem are overseeing the Heat Network Regulation, which are estimated to go live in 2025.
What’s changing in the Heat Network Regulations – an overview

The government have set ambitious targets to increase the amount of heat provided by heat. The key changes for heat suppliers who manage both existing and new networks will be:

  1. The previous requirements under the heat metering and billing regulations will now be a legal requirement under the Energy Act 2023.
  2. Heat suppliers will be governed by Ofgem Regulations
  3. Heat suppliers will need to be authorised by Ofgem 
  4. Under the new regulations, more rigorous consumer protection standards, standards of conduct and pricing mechanisms will be introduced
  5. Heat network schemes will have to meet new minimum technical standards and be certified. These standards are designed to improve network performance and efficiency

 

Who does Heat Network Regulation apply to?

The new Heat Network Regulations are of interest to anyone involved in the management and delivery of a heat network, including:

  • Heat Network Operators & Suppliers HNO’s & HNS (this can be private companies or local authorities)
  • Managing agents
  • Landlords
  • Housing associations
  • Building owners

Even if you’re unsure whether the Heat Network Regulations apply to you, it’s still important that you understand what will be changing in the coming years. 

All “14,000 existing (legacy) heat networks will also be covered, including the 500,000 residential customers currently supplied by heat networks.”(Source)

This means that, no matter the age of your heat network, you will very likely be affected by these new regulations and need to be prepared. 

 

What are the key changes that you need to know?

The key changes for heat suppliers who manage both existing and new networks will be:

  1. The previous requirements under the heat metering and billing regulations will now be a legal requirement under the Energy Act 2023.
  2. Heat suppliers will be governed by Ofgem Regulations
  3. Heat suppliers will need to be authorised by Ofgem 
  4. Under the new regulations, more rigorous consumer protection standards, standards of conduct and pricing mechanisms will be introduced.
  5. Heat network schemes will have to meet new minimum technical standards and be certified. These standards are designed to improve network performance and efficiency.

Unless you want to get caught out unprepared, it’s essential that you learn about the upcoming regulations and adequately prepare for what’s coming. We cannot stress enough the importance of being proactive and ensuring that you’re compliant well in advance of regulations taking effect.

 

Concerned about upcoming regulation?

If you’re not sure how the Heat Network Regulations will affect you, then don’t hesitate to get in touch with our specialists today.

It’s our job to help heat networks prepare for regulation, ensuring that they are fully compliant in advance of enforcement.

 Get in touch 

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