First phase of heat network regulations come into force on 1st April 2025

New regulations on heat networks are being introduced as part of the wider rollout of regulation under the Energy Act 2023 and Heat Networks (Scotland) Act.

Ofgem will become the new regulator for the sector in January 2026, with the full regulatory framework to be in place and enforced from January 2027. This will place new duties on heat network operators and suppliers and allow Ofgem to take action where necessary. The regulations will apply both to communal heat networks, where heat and hot water is supplied to consumers within a single building, and district heating where heat is supplied to multiple buildings.

Ahead of this, consumer protection is being introduced by providing heat network consumers with routes to redress, advice and representation. As of 1st April 2025, Consumer Scotland will become the statutory advocate for heat network consumers in Scotland (with Citizens Advice providing an equivalent role in England and Wales). The Energy Ombudsman will also commence its statutory role in providing a dispute resolution service.

All existing heat network schemes will be deemed authorised from April 2025 and social landlords will need to ensure they have appropriate complaints procedures in place. Heat network suppliers are also being encouraged to register with the Energy Ombudsman as the new legislation comes into effect. There is no cost to register and further details can be found here. 

Additional consultations, including further detail on technical requirements and Heat Network Technical Assurance Scheme, are expected later this year and further detail of the forthcoming regulation can be found on Ofgem’s website.

SFHA has established a working group of members currently involved in managing heat networks or with experience in connecting their properties to larger schemes. This will help to inform our policy priorities and any further support needed for the sector. 

Any SFHA members who would like to be involved in this work should contact Cassandra Dove (cdove@sfha.co.uk). We will also continue to keep members updated as part of our quarterly Energy and Net Zero forum.

Members can also follow and contribute to the discussion in our new digital forums area.