The current state of heat network regulations – As of 27th January 2026

In the ever-evolving landscape of energy regulations, heat networks have largely sailed uncharted waters.

Due to this, I wanted to take the time to inform you of protections that are already in place for heat network consumers (also referred to as residents), but more importantly share the changes on the horizon with Ofgem regulation.

Below is a breakdown of the current state of play. We’ll aim to keep this updated as and when industry updates occur.

Heat Network (Metering & Billing) Regulations 2014

Heat networks are currently regulated under the Heat Network (Metering & Billing) Regulations 2014. You can read the full regulations on the Government website, but we won’t bore you with the details.

Simply put, building owners and managers in charge of a heat network must install energy meters at both the point of entry to the building and in end consumer properties i.e., your home. This allows us, as the metering & billing provider, to accurately charge you for the energy you use.

Important: Following the full implementation of Ofgem regulation from 27th January 2027, and the further introduction of Heat Network Technical Assurance Scheme, this regulation framework will become obsolete.

What is covered

• Residents must be billed using actual meter readings at least once a year, or quarterly where billed electronically. If actual meter reads cannot be obtained, estimates will be used.
• Bills must contain current tariffs, information on consumption (stating if actual or estimate reads have been used), and contact information on how to improve energy efficiency.

What isn’t covered

These regulations don’t touch upon consumer protection rules and sit outside of Ofgem’s current remit.

Ofgem regulation (Heat Network (Market Framework) (Great Britain) Regulations 2025)

Ofgem have now stepped in as the regulator of heat networks, alongside the gas and electricity market. This is a significant change aimed at improving consumer protections and ensuring fair practices in the industry. You can find full details and regulatory documents from the government on their dedicated page.

Important: While consumer protections will come into effect from 27^th January 2026, heat suppliers will be ‘deemed authorised’ but have until 27^th January 2027 to be fully compliant. This means that any changes you may see in your heat supplier’s processes and offerings may be staggered over the next year.

Key things to expect from the new regulations

Back-billing: Heat suppliers will no longer be able to bill consumers for energy used beyond the previous 12 months except where the consumer is at fault or other regulations (Landlord & Tenant Act 1985) are in play. This is expected to be in line with Ofgem’s existing back-billing principles.

Tariff change notification: At least 31-days’ notice must be given to residents before energy tariffs are increased (‘disadvantageous unilateral variation’). Tariffs can only be changed as a maximum every 6-months.

Vulnerable residents: Residents classed as in a vulnerable situation can be recorded under a priority services register (PSR) and can gain access to tailored support through new priority services such as bill nominees, and password protected appointments. This is likely to extend beyond what is currently offered by Heat Trust.

Fair pricing: Heat suppliers will be required to ensure their charges are fair and not disproportionate. They will need to submit detailed information regarding their tariff methodologies to Ofgem from April 2026 who will then look at how this information will be made available for comparisons across the sector. This publication is expected from January 2027 with any pricing rules Ofgem deem fit to implement put forward at this stage based on the nature of the market. The one prescriptive rule Ofgem are looking to implement from 2026 is that heat suppliers cannot recover any penalties, fines or compensation issued to residents back to their customers through its charges.

Billing: Bills must be issued based on actual consumption data at least once a year and should include contact information for key parties and energy saving tips. Annual account statements must be issued to all residents including a projection of charges. Multiple payment options should be available, with flexible debt recovery options. Residents can request up to 12-months of consumption data (dependent on tenancy start date).

What this means for you:

The upcoming regulations are designed to give you greater clarity, protection and support when it comes to your heat network. If you’re classed as a resident in a vulnerable situation, you’ll have access to new priority services to help manage your energy account. You’ll also benefit from more transparent pricing information, helping you understand how your heat tariffs compare to other similar heat networks or heating sources. The amount of information that will be shared is still being confirmed.

Digital platform for heat network regulation: Ofgem is developing a digital platform to support regulatory activities and improve oversight of heat networks. This platform will require heat suppliers to regularly report key performance indicators.

What this means for you:

The platform will allow for better monitoring of your heat network’s performance by your heat supplier. Reporting requirements, such as complaints and unplanned outages, will lead to better accountability and quicker resolution of issues, providing you with a more reliable service.

Heat Trust Scheme Rules

Due to the limited nature of the Heat Network (Metering & Billing) Regulations 2014, an independent non-profit voluntary consumer protection scheme, Heat Trust, was established in 2015. Their Scheme Rules set out best practice guidelines on the services that heat suppliers must provide to their residents, crafted using Ofgem’s existing regulations for gas and electricity suppliers.

Unfortunately, the protections granted by Heat Trust are only applicable to heat suppliers who register individual heat network developments up to the scheme.

While Insite Energy cannot directly apply for membership to the Heat Trust, we continuously strive to align with its guidelines while operating on behalf of and under the instructions of your heat supplier. We always look to advise our clients on how to comply with Heat Trust Scheme Rules. Across our operations, we consistently look at how best we can support and protect our residents, focusing on elements such as the prioritisation of vulnerable residents and delivering an effective complaints policy.

Important: Following the full implementation of Ofgem regulation from 27th January 2027 this scheme will become obsolete.

What is covered

Rules on

• Customer service standards, including handling faults, emergencies, and home attendances.
• How to support residents in vulnerable situations, both those in need of additional support and in payment difficulty.
• Service level agreements (SLAs) in terms of refunds, compensation, and response times.
• How heat charges should be calculated, the period of notice to give residents ahead of tariff changes, rules in billing and back-billing, and payment methods provided.

What isn’t covered

• The price of the tariffs that you are ultimately charged.
• Legal enforcement of these rules as it is only a voluntary scheme.

Ultimately, we, as a metering & billing provider, must always operate on behalf and under the instruction of your heat supplier. Where possible, we help them to comply with Heat Trust Scheme Rules by aligning our services with those outlined in the guidelines.

As of 1st April 2025, heat network consumers now have access to the Energy Ombudsman for dispute resolution and redress. This means you can now escalate the issue to the Energy Ombudsman if:

• you raise a complaint with Insite and are unhappy with the resolution provided after 8-weeks and,
• are also unsatisfied with any further resolution offered by your heat supplier (receiving a deadlock letter in the process).

The Energy Ombudsman offer free and independent support to find a fair resolution between you and your heat supplier. For more information, take a look at the Energy Ombudsman’s Consumer FAQs for Heat Networks. You can find our updated complaints policy on our website.

Please note that this only applies to complaints raised on or after 1st April 2025, and any complaints raised prior to this date will not be eligible. You also must follow the 8-week complaints process with Insite or your heat supplier before being permitted to pass onto Energy Ombudsman.

For the Energy Ombudsman to accept your case, the complaint must be submitted under your registered heat supplier. You can check whether your heat supplier is registered with the Energy Ombudsman at: www.energyombudsman.org/raise-dispute. If they are not listed, contact the Energy Ombudsman directly to notify them of such. Where Insite Energy is appointed as the ESCo Manager for your scheme, disputes should be raised under “Insite Energy – ESCo Manager”.

Residents can also receive free consumer advice from Citizens Advice, and where in Scotland, Citizens Advice Scotland, and Consumer Scotland.

Timeline for heat network regulations

How have Insite Energy been involved?

The Department for Energy Security and Net Zero (DESNZ) and Ofgem are working hard to bring transparency, fairness, and accountability to the industry. With change on the horizon, Insite Energy are actively taking part in navigating these unchartered waters to ensure smooth sailing into regulation.

We are actively participating in Ofgem’s consultations to advocate for our residents’ best interests. Prior to this, we have worked together with industry bodies, including DESNZ, the Association and Decentralised Energy (ADE), and the UK District Energy Association (UKDEA), to escalate issues faced by heat network consumers. We also help clients to adhere to Heat Trust Scheme Rules where possible.

Ahead of the expected changes, the Customer Service Team have been continuously reviewing our internal systems and processes. Our goal is to ensure we not only meet the new regulatory standards but also focus on improving our transparency and support to residents but provide the best possible service.

We remain committed to keeping you informed as these regulations take shape and we want to assure you that your experience remains a top priority for Insite Energy.

Ellie Blacklock

Customer Experience Director