Heat network regulatory changes – the challenges and opportunities ahead
With new targets, new regulations, and new funding opportunities, 2026 has laid the groundwork for significant change for heat networks in the UK.
In high density urban areas, heat networks are often the lowest cost, low carbon heating option. As such, they have a central role to play in achieving net zero. Now, the UK government has launched a new regulatory regime to accelerate heat network deployment, provide new mandatory consumer protection standards and ensure consistent performance and reliability.
But what does that all mean for operators?
We will look at:
Consumer protection regulation changes
Improving operating standards
Heat Network Zoning
Preparing for the changes ahead
Consumer protection regulation changes
Heat networks have historically been subject to relatively limited and indirect regulation which did not fully consider consumer protections. This has led to reports of some legacy communal heat networks operating at just 35 to 45% efficiency, resulting in alleged unfair pricing and poor reliability for consumers.
At the same time, in its recently published Warm Homes Plan, the UK government has set a target to increase the share of heat demand met by heat networks from 3% currently to 7% by 2035. This figure is an interim goal to achieve a longer-term target of 20% by 2050. In order to achieve this ambitious growth while protecting consumers and supporting investor confidence, the government has launched a new regulatory regime.
In January 2026, Ofgem was appointed as the statutory regulator for heat networks in Great Britain, a role established under the Energy Act 2023. Operators and suppliers of heat networks will now be treated as regulated suppliers with consumers having access to the Energy Ombudsman to resolve any disputes.
This also means that from January 2027, operators will obliged to register all relevant heat networks with Ofgem via a new digital portal by 26 January 2027.
These measures ensure best practice across all heat networks and provide protection for users as the UK transitions to a full, low-carbon heating future.
Improving operating standards
HNTAS, or the Heat Network Technical Assurance Scheme to give its full title, is set to be introduced in 2027. This set of new mandatory technical standards aims to aid transparency and ensure a minimum level of performance for heat networks in the UK.
New heat networks will be expected to comply with these standards from next year, with existing heat networks expected to have longer to comply with the higher standards. To support performance improvements to these existing heat networks, funding for upgrades has been made available through the Heat Network Efficiency Scheme (HNES). Guidance on eligibility criteria and the application process can be found on the government website.
