Heat Networks: Regulation
The question
To ask the Secretary of State for Energy Security and Net Zero, whether his Department plans to extend Ofgem’s regulatory powers to include heat networks.
Answered by Miatta Fahnbulleh
DESNZ is introducing heat network regulation which aims to provide consumers with comparable protections to existing gas and electricity regulations.
This new regulatory framework was signed into law earlier this year, establishing Ofgem as the market regulator with consumer interests as its highest priority.
When Ofgem formally commence this role in January 2026, they will require suppliers to institute protections for vulnerable consumers and will have powers to collect pricing data, conduct investigations into instances of disproportionately high prices, and intervene when there is sufficient evidence. They will also establish guaranteed standards of performance to ensure that a minimum quality of service is provided.
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