Heat networks regulation: Implementing consumer protections

The Competition & Markets Authority (CMA) recommended that we regulate the heat network sector, a recommendation that Government accepted in 2018 and took powers to implement through the Energy Act 2023. This is the third and final joint DESNZ and Ofgem consultation on consumer protections for heat network consumers. The two previous consultations in 2020 and 2023 informed the provisions in the Energy Act 2023 and the Heat Networks Market Framework Regulations SI. In this consultation we do not revisit matters that were settled through those consultations. The focus is on areas where we require additional stakeholder views to finalise proposals ahead of a second statutory instrument due to be laid in 2025 and consultation on detailed Ofgem Authorisation Conditions. Where helpful, we provide relevant context to support you in forming a view on the right approach. DESNZ is also planning to further consult to establish a Heat Network Technical Assurance Scheme (HNTAS), to implement mandated technical standards and there will be further consultations on the detailed authorisation conditions and policy issues, such as step-in, that require additional policy development ahead of implementation.