Key Dates for Implementation of Heat Network Regulation

Draft legislation for the Heat Networks (Market Framework) Regulations were laid in parliament last month proposing that regulations come into effect in the Spring of 2025. The transition period, referred to as the Initial Period, is outlined as follows:

First Part of the Initial Period: 1^st April 2025 to 26^th January 2027

• Regulated entities (suppliers and operators) are to register with Ofgem from early 2026 up to the end of this period. This will involve them providing information about themselves and their relevant heat networks and submitting declarations of compliance with regulations.

1^st April 2025

• Entities responsible for Consumer Advocacy (Citizen’s Advice) and Consumer Redress (Energy Ombudsman) begin their roles.
• Heat Networks must be authorised to operate. Existing networks and new heat networks, starting operation during the First Part of the Initial Period, are to be automatically deemed authorised.

27^th January 2026

• Regulatory rules commence – expected to include consumer protection with technical standards to follow closely.
• Authorisation conditions take effect.
• Ofgem commence enforcement action.

Second Part of the Initial Period: 26^th January 2027 to 26^th January 2028

• Applications for authorisation expected to begin.
• Heat networks that began operating during the First Part of the Initial Period which were initially deemed authorised may be required to apply for authorisation.

Many questions remain unanswered as a number of consultation documents are yet to be published on key areas including price control, step-in arrangements and technical standards.  A more detailed timeline published in the latest consultation documents can be found here – see the image on page 10.