Heat networks regulation: enforcement guidelines and penalty policy

We are consulting on our proposed enforcement guidelines and penalty policy for heat networks regulation in Great Britain (England, Scotland and Wales). We are also seeking views on the use of fixed penalties. ## Who should respond We are seeking views from heat network operators and other parties with an interest in our enforcement role in regulating heat networks. We particularly welcome responses from: * landlords * housing providers * asset owners * consumer groups * energy services companies * managing agents * metering and billing agents * trade associations * heat network consumers We would also welcome responses from other stakeholders and members of the public. ## Background Under the [Energy Act 2023](https://www.legislation.gov.uk/ukpga/2023/52), the UK Government has introduced new enforcement powers for the regulation of heat networks across Great Britain. These powers are set out in the [Heat Networks (Market Framework) (Great Britain) Regulations 2025](https://www.legislation.gov.uk/uksi/2025/269/contents/made) (the “Regulations”), which will come into force on 27 January 2026. Scotland has its own legislative framework under the Heat Networks (Scotland) Act 2021. While the Energy Act 2023 and the 2025 Regulations apply across Great Britain, certain provisions, particularly around implementation, are tailored to align with devolved Scottish legislation. ### Our approach Our approach to heat network enforcement is largely modelled on our existing [Enforcement Guidelines](https://www.ofgem.gov.uk/publications/enforcement-guidelines) and [Statement of Policy with respect to Financial Penalties](https://www.ofgem.gov.uk/publications/statement-policy-respect-financial-penalties-and-consumer-redress) under the Gas Act and Electricity Act. We have chosen to publish our enforcement guidelines and penalty policy for heat networks regulation separately at this stage. This reflects the fact that heat networks is a new and developing sector, and there is value in setting out our approach clearly. However, given the similarities with our existing guidance, we may consider incorporating elements of these documents into our main enforcement guidance in the future. ## Before you start Our proposed approach is outlined in two new documents: * the Heat Networks Enforcement Guidelines * the Heat Networks Penalty Policy Before you start, please read these documents. You’ll find them in the ‘Related’ section on this page. ## Why your views matter Your feedback will help us shape a fair and effective enforcement framework for heat networks. It will ensure our approach reflects the needs of consumers, operators, and other stakeholders in this evolving sector. --- Consultation - Heat networks regulation: enforcement guidelines and penalty policy Heat networks regulation: enforcement guidelines and penalty policy Publication date: Monday 18 August 2025 Response deadline: Monday 6 October 2025 Contact: Lewis Togwell Team: Email: Enforcement heatnetworksregulation@ofgem.gov.uk Under the Energy Act 2023, the UK Government has introduced new enforcement powers to regulate heat networks across ‘Great Britain (England, Scotland and Wales). These powers are set out in the Heat Networks (Market Framework) (Great Britain) Regulations 2025 (the “Regulations”), which will come into force on 27 January 2026. Scotland has its own legislative framework under the Heat Networks (Scotland) Act 2021. While the Energy Act 2023 and the 2025 Regulations apply across Great Britain, certain provisions, particularly around implementation, are tailored to align with devolved Scottish legislation. As we prepare for implementation, we are now consulting on our proposed approach to using these enforcement powers. Our proposed approach is outlined in two new documents: • • the Heat Networks Enforcement Guidelines the Heat Networks statement of Policy with respect to Financial Penalties and Consumer Redress Orders We are also seeking views on the use of fixed penalties which is set out in this consultation document. Our approach to Heat Network enforcement is largely modelled on our existing Enforcement Guidelines and Statement of Policy with respect to Financial Penalties under the Gas Act and Electricity Act. We are seeking views from heat network operators and other parties with an interest in our enforcement role in regulating heat networks. We particularly welcome responses from: • landlords • housing providers Consultation - Heat networks regulation: enforcement guidelines and penalty policy • asset owners • consumer groups • energy services companies • managing agents • metering and billing agents • trade associations • heat network consumers We would also welcome responses from other stakeholders and members of the public. This document outlines the scope, purpose and questions of the consultation and how you can get involved. Once the consultation is closed, we will consider all responses. We want to be transparent in our consultations. We will publish the non-confidential responses we receive alongside a decision on next steps on our website at ofgem.gov.uk/consultations. If you want your response – in whole or in part – to be considered confidential, please tell us in your response and explain why. Please clearly mark the parts of your response that you consider to be confidential, and if possible, put the confidential material in separate appendices to your response. We have chosen to publish this as a standalone document at this stage, reflecting the fact that heat networks are a new and developing sector, and there is value in setting out our approach clearly. However, given the similarities with our existing guidance, we may consider incorporating elements of this document into our main enforcement guidance in the future. © Crown copyright 2024 Consultation - Heat networks regulation: enforcement guidelines and penalty policy The text of this document may be reproduced (excluding logos) under and in accordance with the terms of the Open Government Licence. Without prejudice to the generality of the terms of the Open Government Licence the material that is reproduced must be acknowledged as Crown copyright and the document title of this document must be specified in that acknowledgement. Any enquiries related to the text of this publication should be sent to Ofgem at: 10 South Colonnade, Canary Wharf, London, E14 4PU. This publication is available at www.ofgem.gov.uk. Any enquiries regarding the use and re-use of this information resource should be sent to: psi@nationalarchives.gsi.gov.uk Contents Heat networks regulation: enforcement guidelines and penalty policy ... 1 1. Introduction ...................................................................................... 4 Background ....................................................................................... 4 What are we consulting on ................................................................... 5 Next steps ......................................................................................... 6 2. Consultation Questions ..................................................................... 7 Proposed Heat Network Enforcement Guidelines ...................................... 7 Questions .......................................................................................... 8 Proposed Heat Networks Penalty Policy .................................................. 9 Questions .......................................................................................... 9 Fixed Penalties ................................................................................. 10 Questions ........................................................................................ 10 3. Your response, data and confidentiality .......................................... 11 How to respond ................................................................................ 11 Your response, your data and confidentiality ......................................... 11 General feedback .............................................................................. 12 How to track the progress of the consultation ........................................ 13 Appendices ........................................................................................... 14 Appendix 1 – Privacy notice on consultations ....................................... 15 Consultation - Heat networks regulation: enforcement guidelines and penalty policy 1. Introduction Section summary We are preparing to take on new responsibilities as the economic regulator for heat networks in Great Britain. These networks supply heating to homes and businesses, and regulation will help ensure they are operated fairly and in the interests of consumers. To support this, we are consulting on how we intend to use our new enforcement powers. This includes how we will investigate potential breaches and apply financial penalties or consumer redress orders. Our proposals are informed by our experience regulating the gas and electricity sectors and are designed to promote good practice and deter poor conduct. We are particularly interested in views from those currently operating or planning to operate in the heat network sector, as well as from consumer groups and other stakeholders. Background 1.1 The Gas and Electricity Markets Authority (the Authority) regulates the gas and electricity markets in Great Britain. The Office of Gas and Electricity Markets (Ofgem) carries out the Authority’s day-to-day work and investigates matters on its behalf. In addition to this role, Ofgem has been appointed as the economic regulator for parties providing heat network services. 1.2 It is important that we have the right framework and approach to act swiftly and decisively to put things right if organisations fail to meet their obligations, including where they demonstrate poor behaviours or conduct. By doing so, Ofgem can send strong deterrent messages to all the relevant parties operating in the heat network sector to help stamp out bad and sharp practice and provide a fair and positive environment for market participants. 1.3 This work supports our strategic priority of shaping a retail market that works for consumers, as set out in our Forward Work Programme 2025 to 2026, particularly through our commitment to supporting new and evolving markets. 1.4 The Regulations require us to consult, as we consider appropriate, when preparing the statement of policy with respect to penalties and consumer redress orders, a requirement we are meeting today by consulting on the Heat Networks Penalties Policy. Given the interaction between issuing penalties ‘or’ making consumer redress orders and our approach to enforcement we have decided it is appropriate to also consult on our Heat Networks Enforcement Guidelines at the same time. 4 Consultation - Heat networks regulation: enforcement guidelines and penalty policy What are we consulting on 1.5 We are consulting on our proposed approach to the use of our enforcement powers relating to heat networks in Great Britain. The proposals will affect future authorised parties and future network users who are seeking to be connected to or involved in these networks. We want your views on two new documents and other key issues: • the Heat Networks Enforcement Guidelines, which explain the enforcement framework we will use when deploying our powers to investigate and, where appropriate, take enforcement action • the Heat Networks Penalty Policy, which sets out the factors we will normally consider when deciding whether or not to impose a financial penalty and ‘or’ consumer redress order on an authorised party that has contravened a relevant authorisation condition or requirement. It also sets out the factors we will normally consider when determining the amount of that financial penalty • the possible role of fixed penalties, which is considered in this consultation document. We are seeking views on the value of using fixed penalties and how they might be applied in practice While we await legislation to bring Installation and Maintenance Licences (IMLs) into scope, we expect our enforcement approach to be broadly aligned with the framework proposed here. We therefore welcome views from parties who may become IMLs, in relation to the content of the Enforcement Guidelines. 1.6 In preparing these documents, we have had regard to: • our powers granted through the Energy Act 2023 • our powers granted through the Heat Networks (Market Framework) (Great Britain) Regulations 2025 • the broader approach to regulating heat networks • Ofgem’s existing Enforcement Guidelines and penalties statement for enforcement under the Gas Act and Electricity Act • what we have learnt through using our monitoring and enforcement powers with respect to gas and electricity sectors 5 Consultation - Heat networks regulation: enforcement guidelines and penalty policy Next steps 1.7 We intend to issue our finalised Heat Networks Enforcement Guidelines and the Heat Networks Penalties Policy ahead of the heat network enforcement date 27 January 2026. 6 Consultation - Heat networks regulation: enforcement guidelines and penalty policy 2. Consultation Questions 2.1 We propose to model our approach to heat network enforcement on our existing Enforcement Guidelines and penalty policy for enforcement under the Gas Act and Electricity Act, adjusting as necessary for the specific nature of the sector and our different statutory powers as provided under the Regulations. Proposed Heat Network Enforcement Guidelines 2.2 The proposed Heat Network Enforcement Guidelines explain the enforcement framework that we will use when deploying its powers to investigate and, where appropriate, take enforcement action. In particular, the guidelines set out: • how we may use our enforcement powers and tools in situations relating to relevant authorisation condition and requirement contraventions • how our decision-making process works • how contraventions will be addressed and deterred • the actions we may take as an alternative to exercising out statutory enforcement powers 2.3 Our proposed Heat Network Enforcement Guidelines in general follow the same structure as our Gas and Electricity Enforcement Guidelines. However, there are several material differences that reflect the distinct statutory framework and characteristics of the heat networks sector: • references to relevant statutory instruments have been changed to take account of the fact that our powers to regulate heat networks derive from the Regulations • we have also taken account of areas where the enforcement framework for heat networks differs from our existing powers. While we do not set out all these differences in detail here, we have used terminology and language appropriate to the heat networks regime, for instance, referring to authorisation rather than licence • our guidance reflects that the strategic objectives for heat network differ from those in our existing gas and electricity framework. These objectives are set out in the Regulations and align with our broader regulatory responsibilities for the sector. They are detailed in section 1.9 of the Enforcement Guidelines • the maximum financial penalty under the Regulations is the greater of £1 million or 10% of the authorised person’s turnover. This differs from the gas 7 Consultation - Heat networks regulation: enforcement guidelines and penalty policy and electricity regimes, which cap penalties at 10% of turnover. This additional provision allows us to take proportionate action in cases where 10% of turnover would be insufficient, for example where the company has a very low turnover but the contravention has resulted in significant gain • the Regulations provide longer timeframes for key enforcement steps compared to the gas and electricity regimes. We have up to 12 months from the date of service to confirm a provisional order. In addition, Ofgem may impose a financial penalty or consumer redress order within five years of the confirmation of a provisional order or the making of a final order. This contrasts with the current gas and electricity framework, where penalties must be imposed within six months of the date of service of an unconfirmed provisional order or three months of the making of a final order or confirmation of a provisional order. These extended periods are intended to support effective enforcement in complex or protracted cases • in recognition of the expected volume and nature of enforcement cases in the heat networks sector, the Enforcement Guidelines outline that decisions can be made by the Director for Enforcement (or nominated alternate Director) or a Deputy Director of Enforcement. This arrangement is intended to support timely and proportionate enforcement while ensuring appropriate governance • the Heat Network Enforcement Guidelines do not include detailed guidance on enforcement cases that are in relation to consumer law or the Competition Act. Where relevant, we intend to rely on the existing guidance set out in Ofgem’s Gas and Electricity Enforcement Guidelines for gas and electricity. We welcome views on whether this cross-reference is clear and whether any additional clarification would be helpful While the existing Enforcement Guidelines have informed our approach, these are likely to be updated to reflect the DMCCA and other recent changes at the next scheduled update. Our proposed Heat Networks Enforcement Guidelines adopt a similar structure, providing continuity in format and approach while tailoring the content to the specific context of heat network regulation. Questions Q1. Are the enforcement powers, procedures and governance set out clearly in the Heat Network Enforcement Guidelines? If not, please specify which areas need to be clearer and why. 8 Consultation - Heat networks regulation: enforcement guidelines and penalty policy Q2. Is the cross-reference to Ofgem’s main Enforcement Guidelines in relation to consumer law and Competition Act cases clear and sufficient? If not, what additional information or clarification would be helpful? Q3. Is there anything relevant to the heat network sector that we need to take account of in the approach we have outlined for enforcement? What is this, and where do you think it would change our approach? Q4. Do you have any comments on any other areas of the guidelines? Proposed Heat Networks Penalty Policy 2.4 This statement of policy, as required by the Regulations, sets out our proposed approach to using our power to impose financial penalties and ‘or’ consumer redress orders where an authorised party has contravened or is contravening a relevant authorisation condition or requirement. In particular, the statement sets out the factors that we will normally consider when: • deciding whether or not to impose a financial penalty and ‘or’ a consumer redress order • determining the amount of any financial penalty • determining the requirements of any consumer redress order Questions Q5. Is the process for deciding whether to impose a financial penalty, and how the amount is calculated, clearly presented in the Penalty Policy Statement? Q6. Is the process for deciding whether to impose a consumer redress order, and how its requirements are determined, clearly presented in the Penalty Policy Statement? Q7. Are there any additional factors specific to heat networks that we should consider when deciding whether to impose a financial penalty and the amount, or a consumer redress order and the requirements? Q8. Are there any specific considerations or alternative approaches that Ofgem should consider when progressing enforcement action against publicly funded bodies? Q9. Do you have any comments on any other areas of the Penalty Policy Statement? 9 Consultation - Heat networks regulation: enforcement guidelines and penalty policy Fixed Penalties 2.5 In our previous consultation, Heat Networks Regulation: Authorisation and Regulatory Oversight, we introduced the concept of Fixed Penalties (FPs) and noted in section 8.7 that we would consult further on their use. This section furthers that commitment. 2.6 Fixed Penalties are intended to serve as a proportionate and efficient tool for addressing certain types of non-compliance, particularly where the breach is clear and does not require a full investigation. For example, failure to respond to a Request for Information (RFI) within a specified timeframe could result in a fixed penalty. 2.7 While the final policy is still being developed, we are seeking views to help shape our approach. 2.8 We anticipate that FPs would be used in a limited number of scenarios, such as where: • • the breach is administrative or procedural in nature the facts are not in dispute • a swift and proportionate response is in the interest of consumers and the market We are particularly interested in stakeholder views on: • • the types of breaches which could result in a fixed penalty the level of penalty which would be appropriate • whether there are any risks or unintended consequences we should consider Questions Q10. What types of breaches do you think should be subject to Fixed Penalties in the heat networks sector? Q11. What level of penalty do you think would be appropriate for these types of breaches? Q12. Are there any risks or unintended consequences Ofgem should consider in applying Fixed Penalties? 10 Consultation - Heat networks regulation: enforcement guidelines and penalty policy 3. Your response, data and confidentiality How to respond 3.1 We want to hear from anyone interested in this consultation. You can give us your views by: • • completing our online survey on Citizen Space. sending your response to heatnetworksregulation@ofgem.gov.uk 3.2 We’ve asked for your feedback in each of the questions throughout. Please respond to each one as fully as you can. 3.3 We will publish non-confidential responses on our website at https://consult.ofgem.gov.uk. Your response, your data and confidentiality 3.4 You can ask us to keep your response, or parts of your response, confidential. We’ll respect this, subject to obligations to disclose information, for example, under the Freedom of Information Act 2000, the Environmental Information Regulations 2004, statutory directions, court orders, government regulations or where you give us explicit permission to disclose. If you do want us to keep your response confidential, please clearly mark this on your response and explain why. 3.5 If you wish us to keep part of your response confidential, please clearly mark those parts of your response that you do wish to be kept confidential and those that you do not wish to be kept confidential. Please put the confidential material in a separate appendix to your response. If necessary, we’ll get in touch with you to discuss which parts of the information in your response should be kept confidential, and which can be published. We might ask for reasons why. 3.6 If the information you give in your response contains personal data under the General Data Protection Regulation (Regulation (EU) 2016/679) as retained in 11 Consultation - Heat networks regulation: enforcement guidelines and penalty policy domestic law following the UK’s withdrawal from the European Union (“UK GDPR”), the Gas and Electricity Markets Authority will be the data controller for the purposes of GDPR. Ofgem uses the information in responses in performing its statutory functions and in accordance with section 105 of the Utilities Act 2000. Please refer to our Privacy Notice on consultations, see Appendix 4. 3.7 If you wish to respond confidentially, we’ll keep your response itself confidential, but we will publish the number (but not the names) of confidential responses we receive. We won’t link responses to respondents if we publish a summary of responses, and we will evaluate each response on its own merits without undermining your right to confidentiality. General feedback 3.8 We believe that consultation is at the heart of good policy development. We welcome any comments about how we’ve run this consultation. We’d also like to get your answers to these questions: 1. Do you have any comments about the overall process of this consultation? 2. Do you have any comments about its tone and content? 3. Was it easy to read and understand? Or could it have been better written? 4. Were its conclusions balanced? 5. Did it make reasoned recommendations for improvement? 6. Any further comments? Please send any general feedback comments to stakeholders@ofgem.gov.uk 12 Consultation - Heat networks regulation: enforcement guidelines and penalty policy How to track the progress of the consultation You can track the progress of a consultation from upcoming to decision status using the ‘notify me’ function on a consultation page when published on our website. Choose the notify me button and enter your email address into the pop-up window and submit. ofgem.gov.uk/consultations Once subscribed to the notifications for a particular consultation, you will receive an email to notify you when it has changed status. Our consultation stages are: Upcoming > Open > Closed (awaiting decision) > Closed (with decision) 13 Consultation - Heat networks regulation: enforcement guidelines and penalty policy Appendices Index Appendix Name of appendix Page no. 1 Privacy notice on consultations 14 14 Consultation - Heat networks regulation: enforcement guidelines and penalty policy Appendix 1 – Privacy notice on consultations Personal data The following explains your rights and gives you the information you are entitled to under the General Data Protection Regulation (GDPR). Note that this section only refers to your personal data (your name address and anything that could be used to identify you personally) not the content of your response to the consultation. 1. The identity of the controller and contact details of our Data Protection Officer The Gas and Electricity Markets Authority is the controller, (for ease of reference, “Ofgem”). The Data Protection Officer can be contacted at dpo@ofgem.gov.uk 2. Why we are collecting your personal data Your personal data is being collected as an essential part of the consultation process, so that we can contact you regarding your response and for statistical purposes. We may also use it to contact you about related matters. 3. Our legal basis for processing your personal data As a public authority, the GDPR makes provision for Ofgem to process personal data as necessary for the effective performance of a task carried out in the public interest. i.e. a consultation. 4. With whom we will be sharing your personal data (Include here all organisations outside Ofgem who will be given all or some of the data. There is no need to include organisations that will only receive anonymised data. If different organisations see different set of data then make this clear. Be a specific as possible.) 5. For how long we will keep your personal data, or criteria used to determine the retention period. Your personal data will be held for (be as clear as possible but allow room for changes to programmes or policy. It is acceptable to give a relative time e.g. ‘six months after the project is closed’) 6. Your rights The data we are collecting is your personal data, and you have considerable say over what happens to it. You have the right to: • know how we use your personal data 15 Consultation - Heat networks regulation: enforcement guidelines and penalty policy • access your personal data • have personal data corrected if it is inaccurate or incomplete • ask us to delete personal data when we no longer need it • ask us to restrict how we process your data • get your data from us and re-use it across other services • object to certain ways we use your data • be safeguarded against risks where decisions based on your data are taken entirely automatically tell us if we can share your information with 3rd parties tell us your preferred frequency, content and format of our communications with you • • • to lodge a complaint with the independent Information Commissioner (ICO) if you think we are not handling your data fairly or in accordance with the law. You can contact the ICO at https://ico.org.uk/, or telephone 0303 123 1113. 7. Your personal data will not be sent overseas (Note that this cannot be claimed if using Survey Monkey for the consultation as their servers are in the US. In that case use “the Data you provide directly will be stored by Survey Monkey on their servers in the United States. We have taken all necessary precautions to ensure that your rights in term of data protection will not be compromised by this”. 8. Your personal data will not be used for any automated decision making. 9. Your personal data will be stored in a secure government IT system. (If using a third party system such as Survey Monkey to gather the data, you will need to state clearly at which point the data will be moved from there to our internal systems.) 10. More information For more information on how Ofgem processes your data, click on the link to our “ofgem privacy promise”. 16 --- Heat Network Enforcement Guidelines Subject Details Publication date: 27 January 2026 Contact Enforcement Team Team: Email: Enforcement heatnetworksregulation@ofgem.gov.uk Ofgem is the regulator of heat networks across England, Scotland and Wales. It is important that we can act swiftly and decisively to put things right if businesses fail to meet their obligations, including where they demonstrate poor behaviours or conduct. By doing so, Ofgem can send strong deterrent messages to all the relevant businesses operating in the heat network sector to help stamp out bad and sharp practice and provide a fair and positive environment for heat network consumers. This document describes the following: • • • • • how we may use our enforcement powers and tools in situations relating to breaches how our decision-making process works; how we will provide redress and remedies for consumers; how breaches will be addressed and deterred; and the actions we may take as an alternative to exercising our statutory enforcement powers. The aim of these guidelines is to provide greater clarity, consistency and transparency to our enforcement policies and processes, and to describe the framework we have in place to maximise the impact and efficiency of our work. It is aimed at current and potential heat network operators, users of the networks and anyone with an interest in the heat networks sector. Consumers who wish to make a complaint about their Heat Network suppliers should contact that relevant person(s) in the first instance and OFGXXXX Guidance – Heat Network Enforcement Guidelines then, if unhappy with the response, consumers should contact the Energy Ombudsman (see paragraph 1.6). Generally, Ofgem does not intervene in individual disputes between consumers and energy businesses. 2 Guidance – Heat Network Enforcement Guidelines Contents Heat Network Enforcement Guidelines ........................................................................ 1 Executive Summary ................................................................................................................ 6 1) Introduction ......................................................................................................................... 9 2) Our enforcement powers ............................................................................................ 15 Section summary .................................................................................. 15 Energy Act 2023 .................................................................................... 15 Compliance with relevant conditions and requirements ........................... 15 Provisional orders ............................................................................. 16 Final orders and confirmation of provisional orders ................................. 17 Penalties and redress ........................................................................ 17 3) Governance......................................................................................................................... 19 Section summary .............................................................................. 19 The decision-makers ............................................................................. 19 The power to delegate ....................................................................... 19 Senior Ofgem employees ................................................................... 19 The Enforcement Oversight Board (EOB) .............................................. 20 The Enforcement Decision Panel (EDP) ................................................. 20 Authority strategic oversight ................................................................ 21 4) Information gathering .................................................................................................. 22 Section summary .............................................................................. 22 Information .......................................................................................... 22 Self-reporting ................................................................................... 22 Whistleblowers ................................................................................. 24 Information gathered via Ofgem’s internal monitoring functions ............... 24 Other sources of information .............................................................. 25 Handling information ......................................................................... 26 5) Enforcement processes ................................................................................................ 28 Initial enquiry phase ............................................................................. 28 Prioritisation criteria for deciding whether to open (or continue) a case 28 Case opening decisions ...................................................................... 28 Do we have the power to take enforcement action and are we best placed to act? ................................................................................................ 29 Is it a priority matter for us due to the apparent seriousness of the potential breach? ........................................................................................... 30 3 Guidance – Heat Network Enforcement Guidelines Is it a priority matter for us, due to the apparent conduct of the business in question? ........................................................................................ 31 Other considerations ......................................................................... 31 Enforcement case process ..................................................................... 32 Notification that we are opening an enforcement case ......................... 32 Ofgem’s timescales for conducting an investigation ................................ 33 Making cases public and publicity ........................................................ 33 Contact with the case team ................................................................ 34 Requests for information ...................................................................... 34 Site visits ........................................................................................ 36 Meetings ......................................................................................... 36 Raising procedural issues ................................................................... 37 Alternative Action ................................................................................. 37 Alternative Action outcome ................................................................. 38 Statutory demands ................................................................................ 38 6) Settling or contesting a case ..................................................................................... 40 Section summary .................................................................................. 40 Heat network Sectoral Cases ................................................................ 40 Settling heat network sectoral cases .................................................... 40 Summary Statement of Initial Findings ................................................. 42 The settlement framework .................................................................... 42 Settlement window ............................................................................... 43 The Settlement Committee .................................................................... 43 Settlement documents and discussions ................................................ 44 Contested Sectoral cases: The Statement of Case .................................. 46 Disclosure ....................................................................................... 47 Written representations and related matters ......................................... 47 The EDP’s decision: Sectoral cases ...................................................... 49 Financial penalty or consumer redress order in heat network sectoral cases 49 Appeals ........................................................................................... 51 7) Enforcement orders ....................................................................................................... 52 Provisional and Final Orders ................................................................. 52 Final orders ..................................................................................... 52 Provisional orders ............................................................................. 52 Making a final order .......................................................................... 52 Making a provisional order ................................................................. 53 Revocation of a final order or provisional order ...................................... 54 4 Guidance – Heat Network Enforcement Guidelines Court proceedings ............................................................................. 55 Appeals ........................................................................................... 55 Final orders and provisional orders: penalties ........................................ 55 8) Closing cases ..................................................................................................................... 56 Publicity .......................................................................................... 56 Compliance monitoring ......................................................................... 56 General compliance monitoring ........................................................... 56 Compliance monitoring following enforcement action .............................. 57 Lessons learned .................................................................................... 57 5 Guidance – Heat Network Enforcement Guidelines Executive Summary The Gas and Electricity Markets Authority (the Authority) regulates heat network markets in Great Britain1. The Office of Gas and Electricity Markets (Ofgem) conducts the Authority’s day-to-day work and investigates matters on its behalf. It also has powers to investigate suspected infringements of competition law and suspected breaches of certain consumer legislation. The Authority undertakes a range of monitoring, supervision, and compliance activities to ensure that regulated entities are meeting their obligations. These activities form a core part of the Authority’s regulatory approach and are designed to promote early identification and resolution of issues, support industry compliance, and protect consumer interests. This proactive oversight helps to maintain confidence in the regulatory framework and informs decisions about whether formal enforcement action is necessary. As part of its general duty to protect the interests of heat network consumers, Ofgem will consider whether it is appropriate to investigate a potential breach of an authorisation condition or relevant legal condition. Investigations into breaches or infringements, which can be conducted formally or informally, may result in us deciding to take enforcement action. Enforcement action may include issuing directions, making orders, or infringement decisions2 to bring an end to a breach; remedying the loss or harm caused by a breach; imposing financial penalties, imposing consumer redress orders; or obtaining voluntary redress payments. It can also include accepting commitments or undertakings relating to future conduct or arrangements. Alternatively, the Authority may decide not to take further action. Heat networks typically operate under conditions of natural monopoly, whereby end users are connected to a single network without the ability to switch supplier. This structural feature distinguishes heat networks from other regulated energy markets and presents distinct regulatory challenges, particularly in relation to consumer protection, 1 The regulatory framework for heat networks, as established under the Energy Act 2023, applies to Great Britain (England, Scotland, and Wales). Ofgem has been appointed as the statutory regulator for heat networks within this jurisdiction. In Northern Ireland, the Act enables the Department for the Economy to introduce a separate regulatory framework, with the Northern Ireland Authority for Utility Regulation (NIAUR) designated as the regulator. 2 Competition cases only. 6 Guidance – Heat Network Enforcement Guidelines pricing, and service standards. For the purposes of this document, the term authorised person is used to refer to any individual or legal entity subject to regulatory requirements under the heat network framework, including heat suppliers, network operators, developers, and other parties with statutory obligations. By ensuring that we have a robust framework in place to address immediate or future consumer loss or harm, and that there are appropriate consequences for the heat network authorised person(s) that fail to comply, we aim to create an effective deterrent for authorised person(s) to refrain from breaching legal requirements. Our vision is to achieve a culture where businesses put consumers first and act in line with their obligations. This means ensuring fair treatment for all consumers, especially the vulnerable, and protecting consumers’ interests by stamping out bad and sharp practice. Enforcement action is a core part of Ofgem’s role and is essential to the delivery of that vision. The relevant legal requirements that the Authority can enforce include: • • • imposing financial penalties, making consumer redress orders, and making provisional or final orders, for breaches of relevant conditions and requirements under the Heat Networks (Market Framework) (Great Britain) Regulations 2025 introduced following the Energy Act 2023 (our heat network “Sectoral” powers); issuing infringement decisions, accepting commitments to address the Authority’s competition concerns and imposing directions and penalties for breaches of the prohibitions on anti-competitive agreements and abuses of a dominant position in the Competition Act 1998; and 3 taking action to address breaches of certain consumer legislation, including under the Digital Markets, Competition and Consumers Act 2023, the Enterprise Act 2002, the Consumer Rights Act 2015, and the Business Protection from Misleading Marketing Regulations 2008.4 Formal enforcement action is not the only tool available to Ofgem in achieving a culture where businesses put consumers first. Through our monitoring and engagement with authorised person(s), we aim to identify poor conduct leading to loss or harm at an early stage; and to put things right swiftly through compliance engagement or Alternative Action where appropriate, which may result in voluntary redress. 3 See the Electricity and Gas Enforcement Guidelines for more information 4 See the Electricity and Gas Enforcement Guidelines for more information 7 Guidance – Heat Network Enforcement Guidelines Alternative Action may be agreed with authorised person(s) (in heat network Sectoral matters) as an alternative to concluding matters via formal enforcement. It may include remedies such as non-statutory undertakings or assurances to ensure future compliance, independent audits of conduct and/or voluntary action to remedy any concerns, which could include redress payments to affected parties and/or into the Ofgem voluntary redress fund.5 These guidelines set out our general approach to enforcing the heat network legislation and cover the following: • Section 1: Explains what these guidelines cover and our objectives and regulatory principles in exercising our enforcement functions; • Section 2: Describes the legislation and legal requirements covered by these guidelines; • Section 3: Sets out our governance processes; • Section 4: Sets out our information gathering processes; • Section 5: Sets out our enforcement processes; • Section 6: Covers our processes for settling or contesting cases; • Section 7: Covers our processes for enforcement orders; • Section 8: Sets out our processes for closing cases, publicity, and communications, when follow-up compliance might be appropriate and how we evaluate cases and share lessons learned; • Flowcharts: Sectoral enforcement processes. The Authority can take enforcement action against both companies and other undertakings (such as a sole trader, partnership, company, or a group of companies where appropriate). The term “authorised person(s)” in these guidelines should be understood to include public bodies and other authorised persons or entities conducting regulated activities, regardless of their legal form or profit-making status. 5 We have appointed an expert independent third party to manage the allocation of voluntary redress payments from authorised parties to charitable organisations. Authority guidance on the allocation of redress funds | Ofgem. 8 Guidance – Heat Network Enforcement Guidelines 1) Introduction What do these guidelines cover? 1.1 As the heat network sector regulator, we have several roles identifying and responding to conduct in the heat networks markets which may be unlawful, anti-competitive, or otherwise harm consumer interests. 1.2 We handle the following types of investigations: • compliance with relevant conditions and requirements as defined in the Energy Act 2023;6 • alleged anti-competitive agreements and abuses of dominant positions in the gas and electricity markets under Chapters I and II of the Competition Act 1998 (the Competition Act) for matters affecting trade within the United Kingdom; • compliance with consumer protection provisions under Part 8 of the Enterprise Act 2002 (the Enterprise Act and Part 3 of the Digital Markets, Competition and Consumers Act 2024 (DMCCA) • potentially unfair terms in consumer contracts and potentially unfair consumer notices under the Consumer Rights Act 2015 (the Consumer Rights Act);7 • compliance with misleading marketing provisions in the Business Protection from Misleading Marketing Regulations 2008 (the BPMMRs). 1.3 Matters relating to consumer law and Competition Act enforcement, including how Ofgem exercises its concurrent powers under the Competition Act 1998, are addressed in detail in the main Enforcement Guidelines. These guidelines outline the framework for addressing breaches, providing redress, and ensuring compliance across the gas and electricity sectors. Readers seeking further 6 This includes requirements treated as such under other legislation such as the Heat Networks Market Framework Regulations (2025) and other secondary legislation – YET TO COME IN FORCE ADD REFERENCES WHEN AVAILABLE 7 The Unfair Terms in Consumer Contracts Regulations 1999 may also be relevant in certain circumstances. 9 Guidance – Heat Network Enforcement Guidelines information on these areas should refer to the main Enforcement Guidelines.8 1.4 We have published separately, and will continue to publish and revise guidance as appropriate on: • the Authority’s statement of policy on imposing financial penalties and making consumer redress orders under the Energy Act 2023 (“heat network penalty and redress policy statement”9); 1.5 In certain cases, conduct may amount to an offence which we have the power to prosecute (subject to any requirements for consent). 10 Our separate prosecution policy statement explains the process we will follow for criminal investigations.11 We will launch any criminal investigations in accordance with statutory requirements and relevant codes of practice, notably the Criminal Procedure and Investigations Act 1996 and the Police and Criminal Evidence Act 1984 (PACE). 12 1.6 We do not generally intervene in individual disputes between consumers and heat network businesses. If consumers are worried about an issue concerning a business in the heat network sector or have a complaint they wish to make, they should make direct contact with the business in the first instance. If they are not happy with the outcome, they can contact the Energy Ombudsman in relation to businesses who are regulated persons and are authorised to supply heat through a heat network.13 More information on how to make a complaint can be found on our website,14 which also provides details about the Energy Ombudsman and the Citizens Advice Consumer Service, Consumer Scotland, Advice Direct 8 See the Electricity and Gas Enforcement Guidelines for more information 9 ADD REF TO HN PENALTY POLICY WHEN AVAILABLE 10 INSERT LINK TO COMPLAIN ABOUT HEAT NETWORK 11 https://www.ofgem.gov.uk/publications-and-updates/ofgems-criminal-prosecution-policy-statement 12 In Scotland, after the investigation has concluded, we submit a report to the Procurator Fiscal who considers the evidence and decides what action to take in the public interest 13 Resolve Energy Complaints | Energy Ombudsman 14 Complain about your energy supplier | Ofgem 10 Guidance – Heat Network Enforcement Guidelines Scotland and the Citizens Advice Extra Help Unit (EHU) (which has a remit to support vulnerable consumers in Scotland). Our objectives and regulatory principles 1.7 The Authority’s principal objective in conducting its functions is to protect the interests of existing and future heat network consumers. The interests of consumers include their interests in the reliability, proportionate charges and plain communication for the supply of heating, cooling or hot water and compliance with wider net zero targets15. The Authority or a delegate is required to perform its functions in a manner that is best calculated to further its principal objective. The Authority must have due regard to the need to ensure that persons authorised to carry out regulated heat network activities are able to finance the obligations imposed upon them by or under the Regulations. The Authority must also have regard to the interests of heat network consumers who are in vulnerable circumstances.16 The Authority is also required to promote effective competition among entities engaged in the operation of relevant heat networks, the supply of heating, cooling, or hot water to consumers via such networks and commercial activities associated with the supply of heating, cooling, or hot water through heat networks. The Authority (or their delegate) may also consider the interests of consumers in other utility sectors, such as Electricity (under the Electricity Act 1989),Gas conveyed through pipes (under the Gas Act 1986), Communications services and electronic apparatus and Water and sewerage services (under the Water Industry Act 1991)17.The Authority must carry out its functions in the manner best calculated to fulfil that objective, wherever appropriate by promoting effective competition.18 Before exercising its functions to promote competition, it must consider whether the 15 Regulation 6 of the Heat Network (Market Framework) (Great Britain)Regulations 2025 16 Regulation 7 of the Heat Network (Market Framework) (Great Britain)Regulations 2025 17 Regulation 8 of the Heat Network (Market Framework) (Great Britain)Regulations 2025 18 The Authority’s principal objective does not apply when it is exercising functions under the Competition Act or consumer protection legislation 11 Guidance – Heat Network Enforcement Guidelines interests of consumers would be better protected by exercising its functions in other ways.19 1.8 Our vision for our enforcement work is to achieve a culture where businesses put heat network consumers first and act in line with their obligations. 1.9 Our strategic enforcement objectives are to: • deliver credible deterrence across the range of our functions, stamping out bad and sharp practice and ensuring fair treatment for all consumers, especially those in vulnerable situations; • enable competition and innovation, which drives down prices and results in better quality and new products and services for consumers; • ensure visible and meaningful consequences for businesses and, when appropriate, company directors,20 who fail consumers and who do not comply; and • achieve the greatest positive impact by prioritising enforcement resources and using the full range of our powers and regulatory “toolkit.” 1.10 We aim to achieve these objectives by: • identifying poor conduct or behaviour early and acting in a timely manner; • using a range of appropriate enforcement processes; • being fair and transparent throughout the enforcement process and visible in the actions that we take; and learning from everything we do, including sharing lessons learned across Ofgem and from across the energy industry. • 1.11 We will, as appropriate, have regard to the regulatory principles of proportionality and other principles that we consider represent best regulatory practice. 19 These provisions relate only to our functions arising from regulations made under Energy Act 2023 Schedule 18 Part 2 (3). 20 This refers to our powers under the Company Directors Disqualification Act 1986 (CDDA). In addition, recent changes to the authorisation process mean that a history of non-compliance by a company of which a person was senior manager may mean that the Authority will refuse a licence to any company of which that person is a Director. Where it considers it appropriate to do so, the Authority will also provide support and information to assist the Insolvency Service in investigating the circumstances of an energy authorisation’s failure and/or pursuing a person’s disqualification as a company director. 12 Guidance – Heat Network Enforcement Guidelines 1.12 In relation to our enforcement activities, this will include: We will, as appropriate, have regard to the regulatory principles of proportionality and other principles that we consider represent best regulatory practice. Proportionality: We will prioritise our enforcement investigations and actions in cases where the potential breach, if confirmed, is serious (our assessment will include harm to consumers/competition and our ability to regulate), and/or where there is a need to address contravening behaviours or conduct in the energy market and send a deterrent signal to the market. We will not normally prioritise enforcement action for isolated issues affecting small numbers of consumers, unless any harm they have suffered is significant. We will focus on systemic weaknesses, including where those weaknesses adversely affect groups of consumers such as those in vulnerable situations. Targeting: We will use our enforcement tools and resources where they are most needed to tackle the most serious harm or contravening conduct while delivering maximum impact. Where appropriate, we will also work with other enforcement authorities or regulatory bodies to achieve these aims. Timely actions: We will also have regard to the timeliness of our enforcement work. We aim to reach a view on the appropriate way to manage issues which come to our attention and to make decisions as quickly as possible. One of our objectives is to respond more quickly to events and speed up our decision-making to promote consumer protection. The options for settlement decision- making aim to support these objectives and provide greater flexibility during an enforcement investigation. Status of these guidelines 1.13 These guidelines were introduced on 27 January 2026 and apply to all current and future investigations. However, if the circumstances 13 Guidance – Heat Network Enforcement Guidelines of a particular case justify it, or our strategic enforcement objectives are better met by adopting a different approach, we may depart from the general approach to enforcement set out in these guidelines. 1.14 These guidelines are not a substitute for any regulation or law and should not be taken as legal advice. Businesses concerned about a complaint that has been made against them should consider seeking independent legal advice. These guidelines will be kept under review and amended in the light of further experience and developing law and practice. Your Feedback 1.15 We believe that consultation is at the heart of good policy development. We are keen to receive your comments about this guidance. We’d also like to get your answers to these questions: 1. Do you have any comments about the overall quality of this guidance? 2. Do you have any comments about its tone and content? 3. Was it easy to read and understand? Or could it have been better written? 4. Any further comments? Please send any general feedback comments to: heatnetworksregulation@ofgem.gov.uk 14 Guidance – Heat Network Enforcement Guidelines 2) Our enforcement powers Section summary 2.1. This section explains the legal basis for the main types of enforcement action that we conduct under the legislation covered by these guidelines21. 2.2. It also describes our enforcement options under the different pieces of legislation. In appropriate cases, instead of or before using our enforcement powers, we may take Alternative Action to try to resolve issues that arise (see paragraphs 5.50 to 5.57). 2.3. Ofgem’s powers in relation to the matters covered by these guidelines are principally derived from the following legislation: • The Energy Act 2023 • The Heat Network (Market Framework) (Great Britain) Regulations 2025 • The Utilities Act 2000 Energy Act 2023 Compliance with relevant conditions and requirements 2.4. The Authority’s enforcement powers to make a final order, confirm a provisional order, impose a penalty, or make a consumer redress order, cannot be exercised if the Authority is satisfied it would be more appropriate to proceed under the Competition Act. 2.5. Under the Energy Act 2023, the Authority has powers to ensure that regulated persons comply with relevant conditions and requirements. 2.6. Relevant conditions are those contained in any authorisation held by a regulated person. Some authorisations contain conditions which require the regulated person to comply with agreements. Breaches of obligations under these agreements may amount to breaches of authorisation 21 For enforcement action covered by the Competition Act 1998, The Enterprise Act 2002, The Consumer Rights Act 2015 and The Business Protection from Misleading Marketing Regulations 2008 please refer to our main Enforcement Guidelines. 15 Guidance – Heat Network Enforcement Guidelines conditions. We can take enforcement action in respect of these breaches under the relevant legislation. 2.7. Where we see a need to improve consumer protection as the markets we regulate evolve, we can amend or insert conditions into existing authorisations or new authorisations. 2.8. Authorisation conditions can be prescriptive or principles-based and authorisations may contain both. Prescriptive conditions tend to be detailed and specific, identifying how authorisations must achieve a certain outcome. Principles-based conditions have more general requirements, such as ‘to treat customers fairly,’ which places the onus on regulated persons to determine how compliance should be achieved, while also providing more space for innovation. 2.09. In these guidelines, “Sectoral cases” refers to cases where obligations or requirements are enforced as breaches of relevant authorisation conditions or requirements. This is distinct from competition cases, for example, which we enforce using our competition powers. Provisional orders 2.10. A provisional order may be issued to secure compliance where an authorised person is contravening or is likely to contravene any relevant condition or requirement and it is considered requisite to act before a final order can be made. 2.11. This may include where an authorised person(s)is not taking steps to secure compliance, where behaviour needs to be stopped urgently, or where consumers or other heat network market participants are suffering continuing loss or harm. 2.12. A provisional order will cease to have effect at the end of the period specified in the provisional order (which will not exceed twelve months) unless it is confirmed.22 2.13. Further information on the provisional order process is detailed in paragraphs 7.1 to 7.21. 22 Heat Networks (Market Framework) (Great Britain) Regulations 2025, Part 4, regulation 28 (11) 16 Guidance – Heat Network Enforcement Guidelines Final orders and confirmation of provisional orders 2.14. If the Authority is satisfied that a regulated person is contravening or is likely to contravene any relevant condition or requirement, it may impose a final order to where that order is requisite to bring the breach/es to an end, after following certain procedural requirements. 23The Authority must give notice that it proposes to make a final order or confirm a provisional order. We call this a consultation. Further information on the provisional order confirmation process is detailed at paragraph 7.12 and on the final order process at paragraphs 7.4 to 7.9. 2.15. The Authority need not make a final order or confirm a provisional order if the regulated person has agreed to take, and is taking, appropriate steps to comply, or where it considers that the breach is trivial. The Authority may not impose a penalty later than the end of 5 years for the time of the contravention unless before the end of that period the Authority serves a final order or provisional order; serves notice of its intention to impose a penalty or serves a request for information under regulation 48(2) of the Regulations . The service of any such notice or order within five years of the contravention or failure preserves the five years prior to that service as a period in which we can impose a penalty.24 2.16. Failure to comply with a confirmed provisional order or a made final order may lead to authorisation revocation. Penalties and redress 2.17. If the Authority is satisfied that a regulated person has contravened or is contravening a relevant condition or requirement, the Authority may impose a financial penalty, after following certain procedural requirements. A penalty may also be imposed following the making of a provisional or final order (see paragraph 7.21). 2.18. The Authority may also, or instead, make a consumer redress order where one or more consumers have suffered loss, damage, or inconvenience because of a contravention of a relevant condition or requirement, after following certain procedural requirements. 23 Heat Networks (Market Framework) (Great Britain) Regulations 2025, Part 4, regulation 28 (1) 17 Guidance – Heat Network Enforcement Guidelines 2.19. Section 3 details how decisions are made and issued. Further information about penalties and redress can be found in paragraphs 6.55 to 6.61. 2.20. If the Authority concludes that the regulated person has not breached any relevant condition or requirement, the case may be closed. 2.21. The Authority may decide to revoke an authorisation under certain circumstances, including where a regulated person fails to comply with a final order, confirmed provisional order or does not pay any financial penalty. The Authority can enforce a final order, provisional order or consumer redress order by civil proceedings. Any outstanding financial penalty (and interest) may be recovered by the Authority as a civil debt. 2.22. An outline of the process that we will usually follow in heat network sectoral cases is set out in flowchart number 1 in the appendix. 18 Guidance – Heat Network Enforcement Guidelines 3) Governance Section summary 3.1. This section explains the Authority’s power to delegate its decision- making powers and describes the Authority’s decision-making bodies. It sets out how settlement decisions and final decisions in contested cases are made and issued. It also deals with appeals. 3.2. Decisions on breaches, the use of its enforcement powers, and the imposition of penalties or consumer redress payments may be delegated by the Authority to certain employees (of the Authority), who have delegated decision-making powers. The Authority’s decision-makers include the Director responsible for Enforcement or a nominated alternative employee of Ofgem at Director level, (in some cases assisted by the EOB) 25 the Settlement Committee, the Enforcement Decision Panel (EDP) and Enforcement Deputy Directors. The decision-makers The power to delegate 3.3. The Authority is authorised to delegate its decision-making powers to any member or employee of Ofgem, or any committee of Ofgem which consists entirely of members or employees of Ofgem. 26 3.4. For Heat Network Sectoral cases, day-to-day decisions are made by a designated case team under the supervision of the Senior Responsible Officer (SRO), who will be involved as and when necessary. Senior Ofgem employees 3.6. The Authority has delegated decision-making authority in relation to certain matters to the Director responsible for Enforcement (or their nominated alternate), or a Deputy Director for Enforcement including, but not limited to, the decision: a) to issue the settlement mandate; 25 The EOB is made up of senior civil servants from around Ofgem chaired by the Director responsible for Enforcement. This Director is the final decision-maker. 26 Paragraphs 9(1) and (3) of Schedule 1 to the Utilities Act 2000. 19 Guidance – Heat Network Enforcement Guidelines b) to approve and issue the proposed settlement penalty notice; c) to approve any final settlement decision; d) to make a provisional order; e) to confirm a provisional order; f) to make a final order; g) to revoke a final order or a confirmed provisional order; h) to impose a penalty and its amount; (where the imposition of the penalty follows the making of a provisional order, confirmation of a provisional order or the making of a final order); 3.7. In relation to decisions outlined at paragraph 3.6 (e)-(h), the Director (or their nominated alternate), or a Deputy Director for Enforcement shall determine whether any such matters would be appropriate for them to decide having consulted with such parties as they consider appropriate and having regard to such matters as may be relevant depending on the facts and circumstances of the case. If they consider it would not be appropriate for them to decide, they shall refer the matter to the EDP. 3.8. The identity of the Director (or their nominated alternate), or a Deputy Director for Enforcement will be provided to the authorised person(s) in writing. The Enforcement Oversight Board (EOB) 3.10. The EOB advises the Director with responsibility for enforcement. It provides strategic oversight and governance across our enforcement work. The members of the EOB are usually senior civil servants from across Ofgem. It is chaired by the senior civil servant with responsibility for enforcement. The Enforcement Decision Panel (EDP) 3.12. The EDP consists of a pool of members who are employed specifically for EDP duties and are independent from Ofgem’s case teams. One of the EDP members will be appointed as the EDP Chair. 20 Guidance – Heat Network Enforcement Guidelines 3.13. EDP members have delegated powers to make decisions in accordance with their published Terms of Reference. 27 3.14. The EDP Secretariat provides administrative and procedural support to the EDP members. This includes the management of correspondence, meetings, case papers and evidence. The EDP Secretariat is separate from Ofgem’s case and legal teams. It liaises with the parties on behalf of the EDP. 3.15. The EDP or its individual members should not be contacted directly by any party or their representatives unless advised to do so by the EDP. 3.16. Each time we need to use the EDP for an enforcement decision, a decision-making panel (“the Panel”) of usually three members will be appointed by the EDP Chair. There will be a Panel Chair who will chair the decision-making discussions, and who has the casting vote in the event of a deadlock. In certain cases, the EDP chair may appoint a single EDP member or a panel of two members to take the decision. 3.18. The identity of the Panel members will be notified to the parties in writing by the EDP Secretariat. Authority strategic oversight 3.19. The Authority will not seek to influence the outcome of particular matters or change any decision of the EDP, Settlement Committee or other relevant decision makers. 3.20. The Authority will retain oversight through its annual review of the decisions taken by EDP members. It may, if appropriate refer to the EDP to inform future decisions. 27 GEMA rules of procedure and committees | Ofgem 21 Guidance – Heat Network Enforcement Guidelines 4) Information gathering Section summary 4.1. This section will describe the sources of information that are most frequently used and how this information is managed (including confidential information) and assessed to decide whether to open or continue a case and to ensure the process is consistent with the case opening criteria (see paragraphs 5.4 to 5.22). 4.2. It will also describe in detail, what enforcement tools are available to us, how we use our enforcement tools in practice and how we would identify and decide whether to investigate a potential breach. Information 4.3 As part of our enforcement and compliance work, we gather information from various sources, some of which is provided to us and some of which is requested via informal and formal processes. 4.4. We have wide-ranging powers to require the provision of information28. Self-reporting 4.5. The standard authorisation conditions for heat networks require authorised parties to be open and cooperative with Ofgem, which includes self-reporting of potential non-compliance with authorisation conditions.29 4.6. Whilst this requirement, at present, only applies to the authorised person(s), we strongly encourage other relevant parties to promptly and accurately self-report potential breaches that