Heat Networks: Regulation
The question
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to regulate communal heating systems.
Answered by Miatta Fahnbulleh
The Department is introducing heat network regulation in January 2026 which aims to provide consumers with comparable protections to existing gas and electricity regulations.
Ofgem will be appointed heat network regulator, and they will administer the Market Framework which will introduce consumer protections and a licensing regime for operators. Ofgem’s powers will include the ability to investigate unfair pricing and ensure that consumers’ heat supply is maintained if their supplier goes out of business.
Regulatory oversight will be supplemented by statutory redress through the Energy Ombudsman who will have the same powers to hear complaints and make legally binding decisions as they do in gas and electricity markets. Citizens Advice and Consumer Scotland will also be empowered to provide advice and advocacy on behalf of heat network consumers.
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