It’s widely accepted that heat networks will be an important part of the UK’s plans to reach net zero, but they remain a source of confusion to many, despite heat networks supplying heat to more than a million people across the UK. 

A new consultation now aims to gather feedback from landlords and property owners, as well as tenants and other stakeholder groups, about consumer protection regarding heat networks, and the requirements that heat network operators and suppliers will need to comply with as part of new regulatory framework. 

Ofgem’s Deputy Director for heat networks, Lesley Nugent, explains below what heat networks are, and what this new consultation about how they are regulated could mean for landlords.

What are heat networks?

“Heat networks supply heat and hot water from a central source to households and businesses through a network of pipes,” explains Lesley. “There are two types of heat networks: communal heat networks, which serve consumers in a single building; and district heat networks, which supply heat to more than one building, often over large areas. Communal heat networks are the most common in the UK, and both have the potential to decarbonise heating systems and support net zero goals.”

What does this mean for landlords?

Lesley says, “if you run a heat network or own properties which are part of one, it’s worth finding out about the steps Ofgem and the Department of Energy Security and Net Zero (DESNZ) are taking to develop a new regulatory framework for heat networks. In many cases the owner of a building is likely to be the operator of a heat network within it – so understanding your regulatory responsibilities is critical.”

“If you are running a heat network in Scotland, there will also be a consenting and licensing regime for most heat networks. Scottish Government will be consulting on this in the new year”.

Next steps for landlords

Anyone with an interest can visit:  Heat networks regulation: Implementing consumer protections – Department for Energy Security and Net Zero – Citizen Space and Heat networks regulation: authorisation and regulatory oversight – Ofgem – Citizen Space  to respond to the consultations.   You can also register for any of the online webinars Ofgem and DESNZ will be hosting to provide more information on the regulations before they come into effect in early 2026. To receive future updates on the developing regulations email [email protected].