Ofgem consults on service standards for heat network operators from spring 2027

Ofgem has opened a consultation on new service standards authorisation conditions for heat network operators and suppliers serving domestic and micro-business consumers, which it intends to bring into force from spring 2027.

Under the proposals, published on 10 November 2026, suppliers would have to set standards for specified service activities, communicate them clearly to consumers and explain how they will respond when those standards are not met.

The regulator said the plans were "an initial step in our staged approach to improving service quality, transparency and accountability". The proposed conditions are numbered B13, covering supplier service standards, and C3, covering operator service standards.

Ofgem is asking for views on its overall approach, on the requirements for implementing and communicating standards and responding to failures, and on how guidance could support consistent implementation across the sector.

A two-track approach

Alongside the service standards consultation, Ofgem has published a separate consultation on how standards of performance for heat networks could develop in future, including the possible introduction of more prescriptive requirements.

That companion document seeks feedback and evidence on how standards should develop, but Ofgem said it does not propose introducing statutory guaranteed standards of performance, known as GSOPs, at this stage. The regulator said it intends to use the new service standards conditions to help build the evidence base for any future standards.

Who is affected

Ofgem's list of those who should respond extends well beyond energy companies. It names heat network operators and suppliers, energy services companies, housing providers, housing associations, local authorities, landlords and managing agents, alongside charities, consumer advocacy groups and heat network consumers.

Background

The consultation follows the start of heat network regulation in Great Britain in January 2026, when Ofgem said it launched new consumer protection rules for the sector. Existing operators and suppliers were required to register on Ofgem's new digital service from April 2026, and the regulator encouraged all of them to join the Energy Ombudsman Heat Network Supplier scheme.

At the time, the Department for Energy Security and Net Zero said more than 500,000 heat network customers would be shielded from unfair energy price spikes, and that some customers had seen price rises of up to 450% following the increase in gas prices. The government said Ofgem would have powers to act where an operator put up prices unfairly or delivered poor service, with compensation for service outages awarded through the Energy Ombudsman.

Martin McCluskey, Minister for Energy Consumers, said in January: "For too long customers on heat networks have been unprotected, being hit with unfair price rises".

Helena Charlton, Director of Heat Networks at Ofgem, said then that "Ofgem is committed to putting consumers first" and described the start of regulation as an important step towards better protections.

What happens next

Responses to the service standards consultation should be emailed to HeatNetworksRegulation@ofgem.gov.uk by 11 January 2027. Ofgem intends the B13 and C3 conditions to take effect from spring 2027.