Ofgem published a consultation on 30 April 2025 setting out proposals for the structure, objectives and principles of a fair pricing framework for heat networks1. The consultation closed on 10 July 20251. Ofgem states that the Energy Act 2023 named it as the regulator for heat networks in Great Britain1.
The consultation covered the fair pricing principles, cost allocation, data collection, profitability analysis, benchmarking and price investigations1. Ofgem also consulted on a fairness test to help it apply the framework consistently, analytical methods for price and profit comparisons, options for publishing price data centrally, and its approach to price investigations1. The regulator said the feedback would help it develop a framework that ensures customers pay a fair and transparent price for a reliable supply of heating, and that the framework should be proportionate and supportive of investment and market growth1.
"We are consulting on proposals for the structure, objectives and principles of a fair pricing framework for heat networks."
Ofgem said it welcomed views from people with an interest in heat networks, particularly heat network operators and suppliers, energy services companies, housing providers, consumer groups, asset owners, metering and billing agents and trade associations1. The consultation builds on the 2023 joint DESNZ and Ofgem consumer protection consultation, the government response to it, the 2024 joint consultation on implementing consumer protections, and the Heat Networks (Market Framework) (Great Britain) Regulations 20251.
Why it matters for households
Heat networks supply heating and hot water to homes through a shared network rather than an individual gas boiler or heat pump, so residents buy their heat from an operator rather than choosing an energy supplier in the usual way. The framework under consultation concerns how those prices are set and scrutinised, which bears on what a household on a heat network pays and how far it can influence that cost. Ofgem's heat network regulation role, and the wider remit of Ofgem as energy regulator, sit alongside the existing routes for energy complaints and redress where a household disputes a bill or service. The proposals also touch on the regulation and energy independence questions of what a home can control under the rules.
What happens next
Ofgem's page records that the consultation closed on 10 July 2025 and that the outcome was published on 29 September 20251. Ofgem received 90 responses from a range of stakeholders1. The publication of its response is followed by a consultation on the fair pricing principles guidance and cost allocation guidance1. Ofgem's Forward Work Programme covers its preparations for the new regulatory responsibilities and the commencement of the new regime in January 20261. The page states the consultation closed on 9 July 2025 in one place and 10 July 2025 in another1.