Heat networks regulation: implementing consumer protections

This joint DESNZ / Ofgem consultation seeks views and provides updates on consumer protection requirements around:

• the scope of regulation
• how protections will work for non-domestic and small-medium size enterprise consumers
• overarching standards of conduct
• obligations for fair pricing
• protecting vulnerable consumers
• step-in proposals
• approaches to segmentation

We have also published:

• the first set of draft heat network authorisation conditions as an appendix. We’d like views on whether these reflect the intended policy intent
• an Impact Assessment setting out the benefits and costs of introducing the consumer protections outlined in this consultation

We expect the consultation to be of particular interest to:

• consumer groups
• heat network industry, such as developers
• local government

Ofgem are also running a separate consultation on heat networks regulation authorisation and regulatory oversight, which closes on 31 January 2025.

Background

This is the second part to the earlier consumer protections consultation in 2023 to 2024.

The consumer protection consultations build on policy approaches established in earlier consultations:

• the market framework in 2020 to 2022
• cost recovery in 2021 to 2022

Read our consultation privacy notice.