Heat network regulation and metering Heat network regulation, in plain English.
Heat networks in Great Britain are now a regulated market. This page sets out who regulates heat networks, who the rules apply to, and what they say about metering and billing. Each point is quoted from Ofgem's published guidance, with the paragraph named, so your compliance lead can check it.
Who regulates heat networks?
Ofgem is the designated regulator for heat networks in England, Scotland and Wales.
Ofgem is the designated regulator for heat networks in England, Scotland, and Wales (Great Britain).
When did the rules start to apply?
Relevant heat network suppliers and operators have had to comply with Ofgem's authorisation conditions since 27 January 2026. Ofgem's data reporting guidance names some of the areas the conditions cover.
From 27 January 2026, relevant heat network suppliers and operators must comply with the authorisation conditions. These conditions are a combination of prescriptive requirements and principle-based rules, designed to protect heat network consumers and ensure they receive a service that is fair, transparent and reliable.
Since regulatory commencement on 27 January 2026, relevant heat network suppliers and operators have been required to comply with the recently published suite of authorisation conditions.
These conditions include key areas of consumer protection such as billing, complaints, vulnerability and debt as well as the financial resilience of authorised persons.
Who do the rules apply to?
The rules apply to the operators and suppliers of relevant heat networks. In Ofgem's words, operating means controlling the transfer of thermal energy on the network, and supply means being responsible for the commercial arrangements with customers. One organisation can be both.
Operating a relevant heat network means controlling the transfer of thermal energy on that heat network for the purposes of supplying heating, cooling or hot water.
A heat network operator is generally expected to have substantial control over key decisions relating to ensuring the long-term reliability, efficiency, and compliance of the heat network.
An entity is undertaking the regulated activity of supply where they are responsible for the commercial arrangements with customers associated with the supply of heating, cooling, or hot water via a relevant heat network.
Commercial arrangements include setting charges, issuing bills, providing customer service and handling complaints.
While these roles are distinct in regulatory terms, it is common in practice for a single entity to act as both the operator and the supplier for a heat network.
Who has to register, and by when?
Operators and suppliers that began before 1 April 2025 are automatically authorised, which Ofgem calls deemed authorisation, and they must register their heat networks with Ofgem. Registration covers the first part of the initial period, 1 April 2025 to 27 January 2027.
Authorised persons that began operating or supplying a heat network before 1 April 2025 are automatically authorised under the regulations, referred to as ‘deemed authorisation’, and may continue these activities.
This period is set out in regulation 26 of the Heat Networks (Market Framework) Regulations 2025 (the regulations) and runs from 1 April 2025 to 27 January 2027.
All operators and suppliers with deemed authorisation are required to register their heat networks with us by the end of the first part of the initial period, 27 January 2027.
Check Ofgem's heat networks pages for the current registration deadline before you rely on a date.
What do the rules say about metering?
Metering is currently regulated under the Heat Network (Metering and Billing) Regulations. New metering requirements will be set out in the Heat Network Technical Assurance Scheme (HNTAS).
Currently, metering is regulated under the Heat Network (Metering and Billing) Regulations. New metering requirements will be set out in the Heat Network Technical Assurance Scheme (HNTAS).
What does Ofgem's guidance say about bills?
Where a customer has a supply meter, the guidance says at least one bill a year must be based on actual rather than estimated consumption, provided the customer has given a reading the authorised person considers reasonably accurate, or a reading has been taken.
At a minimum, at least once a year a bill must be issued to the Relevant Consumer using a Supply Meter on the basis of actual rather than estimated consumption provided that:
- the Relevant Consumer has provided a meter reading that the authorised person considers reasonably accurate; or
- the authorised person or a third party instructed by the authorised person has taken a meter reading.
Supply Meter - means a meter used or to be used for measuring the quantity of heating, cooling or hot water supplied to a Consumer
What does Ofgem's guidance say about back-billing?
Back-billing means billing a customer for heating, cooling or hot water used in the past. The guidance says back-billing should be a last resort and, where it is necessary, should be limited to 12 months. The back-billing condition applies only to domestic and micro-business consumers, and charges recovered through a service charge are not covered by the limit. Section 5 of the guidance sets out the detail.
Consumers should be provided with accurate and timely bills so that they can manage their billing payments, back-billing should be a last resort. In circumstances where back-billing is necessary, it should be limited to 12 months to ensure that consumers are treated fairly.
The back-billing authorisation condition applies only to domestic and micro-business consumers.
Ofgem regulation aims to prevent suppliers from back-billing heat network consumers for heating, cooling or hot water consumed more than 12 months prior to the date of the bill, in circumstances where the customer is not at fault.
Where the authorised person or any Representative recovers charges through a Service Charge this is not covered by the 12-month back-billing limit under the authorisation condition.
Where metering and billing data comes in.
An accurate bill starts at the meter. A bill based on actual consumption needs a meter reading, and a billing system that applies the right tariff to it.
Litra Consulting helps heat network operators and suppliers check their meter data, billing and tariffs, and shows the workings so your own compliance lead can check them. We do not certify compliance, and we are not endorsed by Ofgem.
Billing assurance and tariff reviews
Sources.
This page quotes the Ofgem guidance below. It is a plain-English summary, not legal advice, and it was last checked against these versions on 10 October 2026. Ofgem keeps the current versions on its heat networks pages.
| Ofgem document | Published |
|---|---|
| Heat networks registration (version 1.0) | 23 January 2026 |
| Heat networks regulation: consumer protection guidance | 13 January 2026 |
| Heat networks fair pricing and cost allocation guidance | 13 January 2026 |
| Heat networks: regular data reporting | 10 March 2026 |
Quoted text is Crown copyright and contains public sector information licensed under the Open Government Licence v3.0.
Unfamiliar term? See the heat network glossary.
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