Heat network consumer protections introduced across Great Britain with Ofgem as regulator

Heat network customers across England, Scotland and Wales were brought under Ofgem regulation for the first time on 27 January 2026, the government announced. The Department for Energy Security and Net Zero said more than 500,000 customers will be shielded from unfair price spikes, with Ofgem given powers to act on unfair price rises and poor service¹. The Energy Ombudsman confirmed the same date for the start of regulation², and its heat network pages state that from 27 January 2026 all heat networks are regulated by Ofgem and must register as members of its scheme³.

The government said some heat network customers have seen energy price rises of up to 450% following the increase in gas prices¹. Under the new rules, homes and businesses will receive clearer, itemised billing, and suppliers must meet standards of conduct covering customer service, engagement and transparency. Customers will be provided with a heat supply agreement setting out terms and conditions and advance notification of changes. Vulnerable customers, described as elderly people or those living with health conditions, will be added to a priority services register so they are first in line to be reconnected if something goes wrong, and will have new protections against the forced installation of pre-payment meters¹. Compensation can be awarded to customers who suffer a service outage through the Energy Ombudsman¹.

Martin McCluskey, Minister for Energy Consumers, said:

"For too long customers on heat networks have been unprotected, being hit with unfair price rises and having to manage with hugely inconvenient service outages."

The government also announced more than £47 million of funding through the Green Heat Network Fund for four heat network projects in Waterloo and Hounslow in London, Sunderland, and Media City in Salford. The Waterloo project will take heat from the River Thames, and the Media City project will take heat from wastewater source heat pumps¹.

Why it matters for households

Heat networks supply heat from a central source through pipes, avoiding individual boilers in each property. The Energy Ombudsman notes that a contract is usually formed between the energy supplier and the heat supplier for a period often exceeding 20 years, which means a consumer cannot transfer their supply to an alternative energy source such as gas, or switch energy supplier³. That limits the options available to a household if service or pricing is poor, which is the gap the new heat network regulation is intended to close.

For a household on a heat network, the practical change is a route to challenge pricing and service that did not previously exist, plus clearer billing and a named contact for complaints and maintenance. The Energy Ombudsman can consider disputes a consumer became aware of on or after 1 April 2025, after the supplier has had eight weeks to resolve the complaint unless it issues a deadlock letter³. It cannot review switching suppliers, or billing and payments relating to standing charges, a capital replacement fund charge, energy performance certificates, or charges within the final bill³. The Ombudsman's service is free to consumers, and the most common financial award is around £50, sometimes called a Time and Trouble Award⁴. Its decisions are binding on suppliers signed up to the scheme, which must implement a resolution within 28 days⁴.

Because heat network customers cannot switch to gas or another supplier, the protections bear directly on a home's energy independence: the terms of supply are set by the network rather than chosen by the household. The Ofgem authorisation conditions and the wider regulation and energy independence framework set what a household can expect when it has no alternative supply.

What happens next

Existing heat network operators and suppliers have been given a deemed authorisation and have until 26 January 2027 to register with Ofgem. After that date, new heat networks must apply to Ofgem to receive authorisation⁵. The Energy Ombudsman states heat suppliers must also register with Ofgem before 27 January 2027³. Ofgem will collect data through the registration process to inform its work to develop pricing benchmarks and implement Guaranteed Standards of Performance⁵. Ofgem has published guidance on registration (23 January 2026), financial resilience, fair pricing and cost allocation, and consumer protection (all 13 January 2026), with enforcement guidelines and penalty policy published on 20 February 2026 and regular data reporting guidance on 10 March 2026⁷. The Scottish Government launched a consultation on installation and maintenance licensing in March 2026⁵.

Sources7 cited

1. Heat network customers to be shielded from unfair price hikes - GOV.UK, gov.uk
2. News on Energy Providers and Networks | Energy Ombudsman, energyombudsman.org
3. Helping You Resolve Heat Network Disputes | Energy Ombudsman, energyombudsman.org
4. Energy Ombudsman FAQs | Your Questions Answered | Energy Ombudsman, energyombudsman.org
5. Heat Networks Delivery Plan Review Report 2026 - gov.scot, gov.scot
6. Heat networks - Renewable and low carbon energy - gov.scot, gov.scot
7. Heat networks - Policy guidance and resources | Ofgem, ofgem.gov.uk