Legislation & Guidance

Heat networks are key to the UK’s low-carbon future, and strong regulation ensures they are efficient, reliable, and fair. The core requirements of the Heat Network (Metering & Billing) Regulations 2014, CIBSE CP1 (2020) standards, and upcoming Ofgem consumer protections help suppliers stay compliant and deliver better outcomes for residents.
Heat Network (Metering & Billing) Regulations (HNMBR)

The purpose of the Heat Network (Metering and Billing) Regulations 2014 is to drive energy efficiency and reduce carbon emissions from heating.

The installation of metering devices is essential to monitoring a network’s efficiency.

Metering also supports fair and transparent billing for customers on heat networks.

The main responsibilities of the Heat Supplier are to ensure:
The installation of heat meters; block entry level and residential (Article 4).
The heat meter accurately measures, memorises and displays the consumption of heating, cooling or hot water by a final customer (Article 5).
The meters are continuously operating correctly, properly maintained, and periodically checked for errors (Article 8).
That bills are accurate, based on actual consumption and compliant with the regulations.
CIBSE Heat Networks Code of Practice (CP1) (2020)

CP1 (2020) sets the benchmark for delivering high-quality heat networks that prioritise energy efficiency, reliable service, and customer satisfaction.

It provides essential guidance for consultants, developers, contractors, and heat suppliers to ensure networks are designed, delivered, and operated to the highest standards.

Implementing CIBSE CP1 will ensure easier compliance with the upcoming Heat Network technical Assurance Scheme (HNTAS) rules.

The main responsibilities and considerations are to ensure:
The network is commissioned for safety, reliability, and cost-effectiveness.
Clear and fair contractual terms are established early to protect consumer rights and support customer satisfaction.
Defined service levels are agreed upfront to inform design decisions and long- term cost planning.
A performance monitoring plan is implemented to track efficiency and ensure customer needs are met.
Advanced metering, such as automatic meter readings (AMR) or smart meters, is installed in all new or extended heat networks.
Smart meters provide real-time usage data to help customers manage energy consumption and costs.
Billing is based on regular usage data with flexible payment options including online, mobile, and prepay methods.
Heat meters are integrated with an open-protocol AMR system to ensure accurate billing and reliable data collection.
Clients maintain access to raw meter data for independent performance verification.
Ofgem’s consumer protection regulations

From 2026, Ofgem will introduce statutory consumer protection regulations for heat networks across the UK.

These will bring heat suppliers in line with the gas and electricity market.

Housing providers and property managers will be required to meet higher expectations for service quality, billing transparency, and customer care.

The main responsibilities for heat suppliers under Ofgem will be to:
Register with the Energy Ombudsman to provide a fair, independent route for complaint resolution. Consumers must be informed of their right to escalate unresolved complaints.
Compliance with Guaranteed Standards of Performance (GSOP) covering heat supply reliability, response times, and communication. Failing to meet these standards may require compensation to consumers.
Additional protections for consumers in vulnerable circumstances, including Priority Support Register (PSR), tailored communication, and enhanced safeguards during outages or billing disputes.
Clear and transparent communication of key information, such as pricing, contract terms, meter readings, and planned maintenance. Consumers must receive this information in accessible formats.
Fair and reasonable pricing structures that reflect actual consumption, avoid excessive standing charges, and are benchmarked against market standards to prevent overcharging.