Who regulates heat networks in the UK now?

Ofgem took over regulation of heat networks from the Office for Product Safety and Standards (OPSS) under the Heat Networks (Market Framework) Regulations 2025, with new authorisation conditions taking effect in January 2026. This replaces the previous light-touch regime with full economic regulation, including formal authorisations, consumer protection standards, fair pricing rules and mandatory data reporting.

Who is the authorised person responsible for heat network compliance?

Regulatory liability falls on the authorised person, which in almost all cases is the freeholder or landlord rather than the managing agent. A managing agent may handle day-to-day operations, but it is the building owner who ultimately answers to Ofgem. Freeholders who assume their managing agent has absorbed this exposure are carrying significant unrecognised risk.

What is the deadline to register a heat network with Ofgem?

Anyone operating under deemed authorisation must register their heat network with Ofgem by 26 January 2027. However, the compliance rules are already live, so waiting until the registration deadline does not delay the obligation to follow the authorisation conditions today.

What penalties can Ofgem impose on heat network operators?

Ofgem has serious enforcement powers, including financial penalties of up to 10% of global turnover or £1 million, whichever is higher. Its February 2026 enforcement guidelines indicate these powers will be actively used rather than held in reserve.

Do the heat network compliance rules apply before registration?

Yes. The authorisation conditions came into force in January 2026 and apply to operators and suppliers immediately, regardless of whether they have completed registration. Registration by the 26 January 2027 deadline is a separate requirement and does not defer existing compliance obligations.

The Quiet Heat Network Rule Change You Really Need to Know About

11 Jun 2026

Let’s be honest: for a long time, heat networks were flying almost completely under the regulatory radar. Oversight belonged to the OPSS, a body much better known for regulating faulty toasters and power tools than complex district heating systems. Compliance was incredibly light-touch, and many operators barely even realised they were regulated at all.

Those days are officially behind us.

Since Ofgem took the reins under the Heat Networks (Market Framework) Regulations 2025, everything has changed. With the new authorisation conditions officially kicking in this past January, what it actually means to operate or supply a heat network has completely transformed.

What’s actually changed?

In short, Ofgem isn’t messing around. They’ve brought the full weight of economic regulation with them. We’re talking about formal authorisations, strict consumer protection standards, fair pricing rules, and mandatory data reporting.

Most importantly, Ofgem has serious enforcement powers. Financial penalties can now hit 10% of global turnover or £1 million – whichever is higher. If their February 2026 enforcement guidelines are anything to go by, these aren’t just empty threats. They fully intend to use them.

Who is actually on the hook?

This is where a lot of people in property management are still playing catch-up.

Regulatory liability falls squarely on the “authorised person” which, in almost all cases, is the freeholder or landlord. A managing agent might handle the day-to-day operations, but it’s the building owner who ultimately has to answer to Ofgem. If your freeholder clients are casually assuming that you’ve absorbed all this exposure for them, they are carrying a massive amount of risk they probably don’t understand.

What you need to do right now

The immediate priority is registration. Anyone operating under “deemed authorisation” absolutely must register their heat network with Ofgem by 26 January 2027.

But here’s the crucial catch: the compliance rules are already live. Waiting to register until the deadline doesn’t delay your obligation to follow the rules today. The handover to Ofgem might have happened quietly in the background, but the consequences of ignoring it will be anything but.

Alex Rowley

Technical Account Manager

Alex Rowley is a dedicated energy and sustainability professional with nearly a decade of experience at Inteb. Currently serving as a Technical Account Manager, Alex builds strong client relationships to deliver strategic energy solutions, combining technical expertise with tailored advice to help portfolios achieve their net-zero and optimisation goals. Prior to this role, Alex spent five years as a Project Manager, leading the delivery of complex infrastructure projects, including metering upgrades, Solar PV installations, EV charging, and compliance programmes.

Alex.Rowley@inteb.uk