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New heat network regulations for housing providers

Blog
The YPO Team
21 Feb 2025

UK heat networks are on a trajectory to become a regulated utility in 2025, like gas and electricity, with a major change in the requirements for them to remain compliant. This includes the introduction of minimal technical standards and a consumer protection plan. These changes will play a significant role in how heat networking will work for housing providers in the future, aiming to reduce the cost of living by regulating prices and ensuring the sector can contribute to delivering net zero efficiently.

New regulations for housing providers

Only 50% of housing providers currently are meeting the existing regulations. Old network housing is not currently metered and so an average of energy usage is calculated; this can be inaccurate and unsustainable and doesn’t encourage residents to be conscious of energy saving and efficiency.

The Department for Energy Security and Net Zero (DESNZ) and Ofgem have published updates for a new regulation commencing in April 2025 that will bring new compliance requirements for housing providers. The regulations will see housing providers regulated by Ofgem, requiring a review in the way the sector manages their heating.

Key dates for the new regulations are:
- April 2025: Implementation of the new changes
- January 2026: Ofgem begins regulation of the sector
- Early 2027: Heat network operators must have their network compliance set up and complete their registration with Ofgem’s digital service.

The changes will mean that individual flats will have a heat meter installed in their homes so that energy usage is better measured and people will have complete control over their heat finances and usage, ensuring fairness and sustainability. This will see rapid growth in coming years as it is also significant for Net Zero, ensuring growth from around 3% provision to roughly 20%.

Consumer Protection plan

- Fair pricing: transparency and bench-marking.
- Quality of service: high standards of performance with compensation payments to cover an array of circumstances (missed appointments, meter repairs etc.).
- Step-in arrangements if a heat network operator fails, with a requirement for Customer Supply Continuity Plans (CSCPs) for each heat network.
- Support for customers in defenceless circumstances, including a Priority Services Register (PSR).
- Transparency of information including the data they have access to.

Technical Standards

All communal heat networks must meet strict technical standards under the Heat Network Technical Assurance Scheme (HNTAS) to ensure a minimum level of performance and reliability, safety and efficiency for heat networks in the UK. It is expected that these technical standards will have to be reached over a specified period of time (6-8 years).

Advance Metering solutions

Properties must implement advanced metering systems to ensure accurate energy efficiency, tenant billing and reducing disputation.

We can help you connect with suppliers to install and maintain meters through our Metering and Meter Data Services DPS – 1056 framework. This DPS has been established to provide customers with a route to market to procure utility and heat meters as well as meter data services.

How to prepare

Using this information, you can take a strategic approach to adapting the regulations, through identifying your current situation and reviewing the way you manage your heat network portfolio.

You can prepare for the new changes by:

Creating a baseline of your current heat network performance.
Identifying the areas needing improvement.
Partnering with a heat network specialist.
Building an enhanced heating plan with long-term upgrades.

Processes for new heat networks will need to be done ahead of time to prevent issues such as scheme commissioning and handover delays.

For more useful information regarding metering services, visit our Metering and Meter Data Services DPS – 1056 framework.

Author

The YPO Team

YPO supplies products and services to a wide range of customers including schools, local authorities, charities, emergency services, public sector and other businesses such as nurseries and care homes. YPO are 100% publicly owned, by 13 local authorities, which means the profits made are returned to public sector customers, delivering even better value for money.