Ofgem Operating Requirements for Heat Networks

Heat network operators in Great Britain are subject to Ofgem authorisation requirements under the Energy Act 2023 and the Heat Networks (Market Framework) (Great Britain) Regulations 2025. This page summarises the key obligations relevant to HIU management and metering compliance.

Regulatory framework

Heat network operators in Great Britain are subject to the Ofgem authorisation regime under the Heat Networks (Market Framework) (Great Britain) Regulations 2025 (SI 2025/269), made under the Energy Act 2023. The Regulations commenced on 27 January 2026. All operators must hold Ofgem authorisation before January 2027.

Section C authorisation conditions

Section C authorisation conditions (C1–C2) cover Operator Standards of Conduct (C1) and Security of Supply (C2). Asset management and record-keeping obligations sit under Section A — A12 (Operational Arrangements and Material Assets) and A9 (Provision of Information to the Authority). The final determined conditions were published by Ofgem in January 2026.

Metering obligations

The supply authorisation conditions (Section B), particularly B6 (Provision of Billing and Price Transparency of Information), require operators carrying on the regulated activity of supply to:

• Ensure heat meters and heat interface units are correctly installed and calibrated
• Maintain accurate metering records at property level
• Base consumer bills on actual or estimated meter readings
• Maintain metering accuracy within applicable tolerances
• Notify consumers of their metering rights

Operators should ensure their HIU and metering asset records are maintained in a form that can be presented to Ofgem during compliance monitoring or enforcement activity.

Enforcement

Ofgem published its Heat Networks Enforcement Guidelines in February 2026. These set out Ofgem's approach to compliance monitoring, enforcement action, penalties, and consumer redress. Deficiencies in operational records and metering accuracy are explicitly within scope.

January 2027 deadline

All operators must hold Ofgem authorisation before January 2027. Operational compliance documentation, including HIU and metering records, forms part of the authorisation evidence base. The HNC HIU Tool helps operators build and maintain the commissioning records needed to support this evidence base.