Understanding billing and metering requirements for UK heat networks. Heat cost allocators, individual meters, billing frequency, and Ofgem transparency.
Heat network billing is governed by two overlapping frameworks: the Heat Network (Metering and Billing) Regulations 2014 (which continue to apply during the transition period) and the new Ofgem Authorisation Conditions covering billing transparency and fair pricing. Heat network operators must comply with the 2014 Regulations; authorised suppliers must additionally comply with the Ofgem Authorisation Conditions covering billing transparency.
Who this guide is for. Billing and metering duties under AC B6 sit on the supplier in the regulated activity of supply. On most heat networks the operator and supplier are the same legal entity, so this guidance applies to operators in that capacity. Where operation and supply are split, the billing duty sits on the supplier. References to "the supplier" below should be read as "the supplier — who on your network may also be the operator".
The 2014 Regulations require heat network operators to install individual heat meters or heat cost allocators where it is cost-effective and technically feasible to do so. Individual metering allows consumers to be billed based on their actual consumption rather than a flat charge, which incentivises energy efficiency and is considered fairer. Where individual metering is not feasible, operators must conduct a cost-effectiveness assessment and retain the documentation.
Under the new Ofgem framework, metering accuracy and reliability become more important. Operators should ensure meters are regularly calibrated or replaced according to manufacturer specifications.
Ofgem's Authorisation Conditions require that bills are clear, accurate, and not misleading. Consumers must be able to understand what they are being charged for, how their charges are calculated, and how their consumption compares to previous periods. Bills should clearly distinguish between variable charges and fixed charges. Estimated bills should be clearly identified as estimates.
Suppliers must offer reasonable billing arrangements as required by AC B6, including accessible payment options. Annual billing with a single large payment is unlikely to meet Ofgem's expectations, particularly for vulnerable consumers. Offering monthly or quarterly billing as standard is good practice and consistent with Ofgem's consumer protection expectations.
Suppliers need a billing policy covering meter reading schedules, bill calculation methodology, payment methods, estimated billing procedures, back-billing limits, and dispute resolution. A customer-facing billing guide should explain the same information in plain language.
Wizard-driven templates covering billing and metering Authorisation Condition requirements — ready for Ofgem review.
Generate billing and metering documentationAlso see: Complaints Handling Guide — timescales, recording, and Energy Ombudsman escalation requirements.
Last checked against official sources: 28 May 2026.