Ofgem Regulation – A Major Milestone for UK Heat

We welcome Ofgem as the statutory regulator for the UK heat energy industry, marking a significant step in the sector’s development, bringing improved quality standards, greater customer protections and clearer routes of accountability across the sector.

To mark this milestone, Martin McCluskey, Parliamentary Under-Secretary of State in the Department for Energy Security and Net Zero visited our  Queens Quay heat network scheme to discuss how the new Ofgem heat network regulations and Warm Homes Plan will drive improved outcomes for customers living and working on heat networks.

What’s Changing And Why Does It Matter?

• Ofgem will be the statutory regulator for the industry from Tuesday 27^th January 2026, introducing a formal regulatory framework for heat networks, strengthening consumer protections and driving improved technical standards and service expectations.
• The Warm Homes Plan sets the direction of travel for upgrading homes and scaling up of low-carbon heating solutions, including heat networks. We continue to welcome the funding support from Green Heat Network Fund (GNNF) and Heat Network Efficiency Scheme (HNES).
• Heat network zoning is being developed to accelerate heat network delivery in areas where they are expected to be the lowest-cost solution for decarbonising heat. With the initial pilot zones already in procurement or commercialisation, heat network zoning will be found in towns and cities across the UK and will support the UK Government’s focus on improving consumer outcomes whilst meeting national decarbonisation targets.

With Ofgem’s regulatory oversight, heat network customers can look forward to improved consumer rights, living on a heat network governed by greater quality standards, more transparency over service accountability, and ultimately receiving fair treatment, especially if they find themselves in a vulnerable circumstance.

The Warm Homes Plan provides the broader policy backdrop for upgrading homes and the scaling of the low-carbon heat market. For Vital Energi, regulation is ultimately about improving outcomes for the people living on heat networks.

We support residents in living in heat network-connected homes across the UK through dedicated communication channels, engagement support, and joined-up operational services, including operations & maintenance and metering & billing. Backed by an experienced customer service team with expertise in supporting vulnerable customers, we help operators deliver the reliable, transparent experience that regulation, planning and funding are designed to achieve.

Our Involvement

As we welcome this major milestone for the UK heat network industry, we’d like to thank our colleagues who have been part of the Heat Network Technical Assurance Scheme (HNTAS) and the Ofgem consumer protection consultation process, devoting their time, expertise and resources to enable this important regulatory development to happen and ultimately helping to improve the future of our industry.

Read more about how we have supported managing agents FirstPort in accessing HNES funding for improvements at their Capital East II development.

What Is The Timeline For Regulation?

2026 will be a year of transition, involving understanding the details of Ofgem’s ‘rulebook’ and ensuring the availability of accurate data to enable performance and customer care improvements across all heat networks.  Here is a brief overview of key dates:

• 1^st April 2025: Consumer advocacy services (Citizens Advice, Consumer Scotland) and the Energy Ombudsman became available.
• 27^th January 2026: Ofgem becomes the statutory regulator for the UK heat industry. All existing heat networks will be granted ‘deemed authorisation’ by Ofgem and will be able to continue to operate.
• Early 2026: Ofgem ‘rulebook’ released.
• Spring 2026: Ofgem’s digital service for registration and data submission goes live.
• 26^th January 2027: All existing heat networks must be registered with Ofgem, and new networks must apply for authorisation before operating.

Please fill out the form below if you would like to speak to someone about developing your heat network, your data infrastructure, improving customer care, accessing funds for improvements through the Heat Network Efficiency Scheme (HNES) or simply your heat network requirements as we transition towards regulatory compliance.