Ofgem updates registration route for district heat networks with embedded communal systems

Ofgem has published guidance on how organisations that operate and supply district heat network sites with embedded communal heat networks should register, while it updates its digital registration service in two phases.

The regulator said on 29 October 2026 that organisations can keep using the current service while the improvements are made. The guidance applies to an organisation that is both operator and supplier of a district heat network site and also operates and supplies at least one embedded communal heat network on it.

Ofgem uses the term "embedded communal heat network" for a communal network connected to a district heat network. A "district heat network site" is the district network and its embedded communal networks taken together.

As an example, Ofgem described four connected blocks of flats, each with 25 customers, served by a single energy centre. It counts this as a district heat network site with four embedded communal networks.

The two options

Operators can currently register most district sites in one of two ways, according to Ofgem: by combining the embedded communal network information in a single registration, or by registering every network separately.

The regulator said the option chosen determines how the organisation will report data to it in future. Those that combine information at registration will also combine it in regular data reporting; those that register separately must provide data for each network individually.

Under Option 1, the organisation submits one registration for the district site, combining the district network and the embedded communal networks it operates and supplies, for example by entering the combined customer numbers across the whole site. To use this route, the organisation must be the only supplier for the site. Any embedded communal network with a different operator or supplier must be registered separately, and each such network on the site must be entered as a single non-domestic customer.

Ofgem said it will later add functionality to link embedded communal networks to a registered district site. Once that is available, the embedded networks can be registered separately with minimal information, such as postcode and name.

Under Option 2, the organisation submits separate registrations for the district network and each embedded communal network. Organisations choosing this route will not need to register the communal networks later, Ofgem said, because they will already be registered.

In Ofgem's second worked example, a site of 10 blocks of flats and 100 houses on one energy centre, the registering organisation would need nine registrations under Option 2. The site would have 11 registrations in total once the two blocks with a different operator or supplier are also registered.

Networks that must wait

Two types of district network cannot yet register and must wait for the service updates, Ofgem said: those with only embedded communal networks and no energy centre on the district site, and shared ground loops with only embedded communal networks.

Ofgem expects to update the service in two phases. The first will make minor improvements to the district heat network registration journey. The second will add the functionality to link embedded communal networks. The updated service will include a new question asking organisations to choose between the two registration options. The guidance does not give a date for either phase.

Existing registrations remain valid, Ofgem said, and it will contact registered organisations if they need to provide further information. Questions on whether the guidance applies can be sent to heatnetworks.enquiries@ofgem.gov.uk.

Background

Ofgem regulates heat networks in Great Britain, covering England, Scotland and Wales, and said regulation is being introduced in phases. According to the Department for Energy Security and Net Zero, the Heat Networks (Market Framework) (Great Britain) Regulations 2026 were introduced on 27 January 2026, and all heat networks in Great Britain have been subject to Ofgem regulation since that date. The Heat Network (Metering and Billing) Regulations first came into force in 2014.

Ofgem defines district heat networks as those supplying heating, cooling or hot water to two or more buildings, and communal networks as those supplying a single building divided into separate premises. An operator is the authorised person with control over and responsibility for the network; a supplier is the authorised person responsible for the contractual supply relationship. Where an organisation is the operator only, it is responsible for starting the registration process.

Operators and suppliers of relevant heat networks must give Ofgem details of their organisation, ownership, financial resilience and consumer protection arrangements by 26 January 2027. Registration asks for information about the organisation and its networks, and Ofgem does not require supporting documents or evidence to be uploaded. Organisations whose role includes supply must also register with the Energy Ombudsman's heat network supplier scheme.

Ofgem said its regulations focus on good outcomes for customers, including customer service, reliability of supply, transparent bills and fair pricing.

Separately, Ofgem opened a consultation on 5 October 2026 on interim authorisation application arrangements for new heat network operators and suppliers, including the information applicants must provide. Under the proposals, from 27 January 2027 anyone intending to begin operating or supplying a heat network must apply to Ofgem for authorisation. The consultation closes on 2 November 2026.