From 27 January 2026, heat networks are regulated by the energy regulator Ofgem. If you are a housing provider that owns and/or operates a heat network, you will be in scope of the regulation. These pages set out the information you’ll need to understand, with links to further sources of advice.
Heat networks have been supplying heat and hot water to domestic homes for several decades. Despite this, they have never been subject to regulation in the same way as energy retail suppliers are.
The new regulations will apply to both large district networks serving multiple buildings, and smaller communal networks that tend to only serve one building.
According to a recent estimate by Ofgem, 60 per cent of all heat networks are in the social housing sector. Many social housing providers have taken on the responsibility for owning and operating heat networks almost accidentally.
However, the introduction of regulation means that housing professionals working in assets, compliance, energy, sustainability, and executive roles will need to take action to ensure their organisations are compliant.
Over the past two years, CIH has engaged closely with Ofgem on the development of the regulation. We have responded to relevant consultations and worked with our partners at the National Housing Federation, the Local Government Association, and The Heat Network to ensure regulation is deliverable, and does not overlap unnecessarily with housing legislation and regulation.
These pages are intended to provide an overview of heat network regulations and associated policy developments. It is not intended to serve as a definitive ‘how to’ or roadmap for achieving compliance, as this will be different for different organisations. However, it does include the key steps that housing organisations and professionals should be taking to work towards full compliance, along with links to further sources of advice and information.
These pages do not constitute legal advice and CIH recommends you seek expert advice from heat network consultancies or legal advisors to support you with compliance.
