Ofgem asks whether heat networks should face guaranteed standards with compensation

Ofgem has opened a consultation on whether heat networks in Great Britain should face statutory guaranteed standards of performance, less than a year after the regulator began regulating the sector on 27 January 2026.

The consultation, published on 10 November 2026, asks for feedback and evidence on how standards of performance for heat networks should develop over time. That includes whether more prescriptive requirements, such as statutory guaranteed standards of performance (GSOPs), should be introduced and how they would work.

Ofgem said the paper does not propose introducing statutory GSOPs at this stage and will instead inform future policy development. Responses are due by 22 February 2027.

In electricity distribution, where GSOPs already apply, Ofgem's guidance says GSOP payments set out what a network operator must pay a customer if it fails to meet specified standards of performance.

Two consultations

Alongside the longer-term paper, Ofgem published a separate consultation proposing new service standards authorisation conditions for heat network operators and suppliers. The regulator intends those conditions to apply from spring 2027.

The proposed conditions are numbered B13, covering supplier service standards, and C3, covering operator service standards. They would apply to operators and suppliers serving domestic and micro-business consumers. That consultation closes earlier, on 11 January 2027.

Ofgem described the new conditions as a proportionate first step towards improving transparency, accountability and quality of service across the heat network sector. It said it also intends to use the conditions to help build the evidence base for future standards.

What Ofgem is asking

The future standards consultation seeks views on three areas: which standards should be prioritised, phased or targeted; how requirements, compensation and exemptions should reflect different network and consumer circumstances; and what evidence Ofgem should use to assess whether statutory requirements would be effective and proportionate.

The regulator wants to hear from heat network operators, suppliers, energy services companies, housing providers, housing associations, local authorities, landlords, managing agents, charities, consumer advocacy groups and heat network consumers.

Background

Ofgem regulates heat networks in England, Scotland and Wales. Regulation began on 27 January 2026, following the introduction of advice and advocacy services for heat network consumers in April 2025. Existing operating networks were automatically authorised to continue supplying heating, cooling or hot water, an arrangement Ofgem calls deemed authorisation.

The Department for Energy Security and Net Zero said at the launch that the consumer protections support half a million heat network consumers across Great Britain, with compensation for service outages awarded to customers through the Energy Ombudsman.

Helena Charlton, Director of Heat Networks at Ofgem, said at the time: "Ofgem is committed to putting consumers first, and the beginning of heat network regulation marks an important step towards better protections."

Aaron Gould, interim CEO of ADE: Heat Networks, said: "After 15 years of talking about it, the wait is over."

What happens next

From 27 January 2027, anyone intending to begin operating or supplying a heat network must apply to Ofgem for authorisation before starting, according to the regulator's separate consultation on authorisation application arrangements.

The government's Heat Network Technical Assurance Scheme, which sets technical standards for networks, is planned to launch in 2027 and will be phased in over time, according to the Department for Energy Security and Net Zero.

Responses to the service standards consultation are due by 11 January 2027, and to the future standards consultation by 22 February 2027, by email to HeatNetworksRegulation@ofgem.gov.uk.