Ofgem Changes for Heat Network Customers from 27th January 2026

From 27^th January 2026, heat networks in Great Britain (England, Scotland and Wales) enter a new regulatory era. After growing in popularity and Government support, the level of regulation has been brought up to date for heat networks - which provide heating and hot water to multiple homes or businesses from a central source (Not familiar with heat networks? Click here.). Heat networks are now brought under the oversight of Ofgem (the Office of Gas and Electricity Markets).

This is a big shift for customers (particularly residential and small business customers) on heat networks, who now get similar consumer protections as people on gas or electricity supplies.

Why Regulation Matters?

Heat networks historically have not been covered by the energy consumer protections that apply to gas and electricity. This meant:

• Different, including indirect, pricing protections which might have been confusing.
• Not all customers received the same level of transparency on bills and charges.
• Fewer formal routes to challenge poor service or unfair pricing, which has been addressed alongside the role of the Energy Ombudsman.

That’s changing now. Starting 27^th January:

Ofgem Becomes the Official Regulator.
Ofgem now has the authority to oversee heat network operators and suppliers, acting against unfair pricing and poor service.

Protection from Unfair Price Hikes.
Ofgem can take action if prices rise without a fair reason, closing a potential gap where some customers may have faced significant price jumps.

Clearer, Transparent Billing.
You should see itemised heat bills with understandable charges – addressing any issues where you might not have been told what you are paying for.

Better Support for Vulnerable Consumers.
Those classed as vulnerable get extra safeguards, including priority on reconnection if heat supply is interrupted and you can read more about our existing Priority Services Register (PSR).

Formal Complaints and Redress Options.
If your heat network supplier or operator fails to fix a problem, you can now escalate unresolved complaints through the Energy Ombudsman, a free dispute-resolution service and if mySycous provide services on behalf of your heat supplier, we may be able to help and you can read more about this here.

What Your Heat Network Operator and Supplier Must Do?

With Ofgem now in charge under the Heat Networks (Market Framework) Regulations 2025:

• All existing heat networks have temporary authorisation from Ofgem.
• Operators and suppliers must register with Ofgem by January 2027.
• They must meet new standards of conduct, including fair pricing, accurate billing, and good customer service.
• Ofgem will require performance reporting and can enforce compliance, including penalties for breaches.

The regulatory model is a little different from electricity and gas suppliers as it uses authorisation instead of full licences, recognising the diversity and number of heat network operators across the UK.

The Current Timeline:

1^st April 2025 - Statutory consumer advice and advocacy services launched (Citizens Advice/Advice Direct Scotland).

1^st April 2025 to 26^th January 2027 - Existing heat networks automatically “deemed authorised” with Ofgem.

27^th January 2026 - New consumer protection regulations formally begin; Ofgem starts regulating heat networks.

Spring 2026 to 26^th January 2027 - Operators must register with Ofgem.

What This Means for You?

• More protections – new rights around fair pricing, transparency and dispute resolution.
• Clearer bills – no more unexplained charges without notice.
• Support when things go wrong – clear paths to complain and seek compensation.
• Closer alignment to energy market standards – utilities like heat and hot water now carry similar expectations to gas and electric supplies.

For anyone living on a heat network, this is a major consumer rights milestone. Regulators and the Government see these protections as helping make heat networks fairer, more transparent and more accountable as they grow in importance for decarbonising heat.

Whilst mySycous are not your heat network supplier or operator, you can read more about who we are. we work on their behalf to undertake metering, billing and some maintenance services, which means we can help your supplier or operator meet these requirements, as well as helping you with any concerns you may have, just Get in Touch.

Top Tips for Customers!

• Check your bill - make sure it’s itemised and clear and Get in Touch if you are not sure - you can also watch our video on how tariffs are calculated:

• Know your supplier/operator’s contact details – for complaints and escalation, if we work on their behalf, we would be happy to share these and you can find out who it is on your bill or other correspondence!

• Use consumer support services – Citizens Advice and Advice Direct Scotland services are there for help.

• If unresolved, contact the Energy Ombudsman – for independent resolution but you must contact your supplier first.

We very much welcome the role of Ofgem, supporting you and your heat network supplier and operator! If you do need any more information, or there is anything we can help you with, please Get in Touch.