Ofgem launches consultations on heat network consumer protections, authorisations and enforcement
Housing association views sought on new heat network regulations.
The energy regulator, Ofgem, is seeking views as part of two new consultations relating to heat network regulations.
The first consultation - on implementing consumer protections - seeks views on the consumer protections and requirements that heat network operators and suppliers should have to comply with under the new regulatory framework. In particular, the consultations is looking for input on:
- the scope of regulation
- how protections will work for non-domestic and small-medium size enterprise consumers
- overarching standards of conduct
- obligations for fair pricing
- protecting vulnerable consumers
- step-in proposals
- approaches to segmentation
The second consultation - on authorisation and regulatory oversight - seeks input on the regulatory framework, which is due to be introduced from April, with subsequent regulatory rules expected from January 2026. This consultation will cover:
- the scope of authorisation
- implementation and transitional arrangements
- registration and authorisation applications
- monitoring
- audit
- compliance and enforcement
Both consultations aim to inform a proportionate response to regulation which balances consumer protections with investment, market growth, and UK-wide net zero targets. The proposed regulatory framework will apply on a UK-wide basis and the consultations are being held jointly with the UK Department for Energy Security and Net Zero (DESNZ).
The deadline for both consultations is Friday 31 January and SFHA will be a holding a members' webinar with Ofgem (date to be confirmed) to allow housing associations to put their questions to the regulator. Further details will be shared soon.