The Heat Networks (Market Framework) (Great Britain) Regulations 2025 were made on 2 March 2025 under powers in the Energy Act 20231. They establish a market framework for heat networks in Great Britain, with the principal objective of the Regulator being "to protect the interests of heat network consumers"1. The Regulations extend to England and Wales and Scotland, except regulation 68, which amends Part 1 of the Heat Networks (Scotland) Act 2021 and extends to Scotland only1.
The Regulations come into force in stages. Certain provisions, including regulation 13 (meaning of regulated activity), regulation 18 (general authorisation conditions) and Chapter 1 of Part 6 (standards of performance), came into force on 3 March 20251. Regulation 14, which prohibits carrying on a regulated activity without authorisation, and regulation 26 (initial period) came into force on 1 April 20251. The remaining provisions come into force on 27th January 2026, described in the Regulations as "the launch date"1.
A "regulated activity" means operating a relevant heat network, or supplying heating, cooling or hot water to heat network consumers by means of a relevant heat network1. The Regulations do not apply to a communal heat network supplying cooling if cooling and any heating are provided only by air-conditioning and hot water is not supplied by the network1. They also do not apply where the heat network only serves a single house in multiple occupation, or has no more than one source appliance with a capacity of no more than 45 kilowatt thermal1.
The Secretary of State, not the GEMA, has the function of determining and enforcing general authorisation conditions related to the accuracy of heat meters1. The Regulator may delegate functions to another person, except functions conferred by regulation 49 (inspections), with the Secretary of State's permission where the delegation is not by the Secretary of State1.
Authorisation conditions may include a condition that an authorised person must not charge domestic heat network consumers an amount that exceeds a specified price cap, a condition that charges must not be disproportionate, a condition requiring credit to be provided to heat network consumers with pre-payment meters, and a condition about conduct if payments are not made, including restricting when premises may be disconnected1. Conditions may also require an authorised person to make an offer of connection or supply to premises when asked to do so by the owner, occupier or a party acting on their behalf1.
"The principal objective of the Regulator in carrying out its functions under these Regulations is to protect the interests of heat network consumers."
Why it matters for households
Heat networks supply heating, cooling or hot water to consumers through a shared network rather than an individual boiler. The Regulations create an authorisation regime for operators of these networks, with conditions that can cover price caps, disproportionate charges, pre-payment meter credit and restrictions on disconnection1. For households on a heat network, this means the terms of supply are set within a framework whose stated principal objective is protecting their interests, including reliability of supply and interests in charges1. The Regulations do not themselves set a price cap; they provide for a condition that an authorised person must not charge domestic consumers an amount that exceeds a specified price cap1. The framework sits alongside the wider UK home energy regulation and policy landscape, and complaints and redress arrangements are covered in the site's guide to energy complaints and redress. For households in Scotland, the devolved dimension is set out in the guide to energy and buildings policy in Scotland.
What happens next
The remaining provisions come into force on 27th January 2026, the launch date1. Regulation 14, the prohibition on carrying on a regulated activity without authorisation, came into force on 1 April 20251. The Regulations were amended by The Heat Networks (Market Framework) (Great Britain) (Amendment) Regulations 2026 (S.I. 2026/7), which inserted Part 3A and made other changes with effect from 7 January 20261.
Sources1 cited
- The Heat Networks (Market Framework) (Great Britain) Regulations 2025, legislation.gov.uk