How heat network suppliers and operators must conduct themselves under Ofgem's two parallel Standards of Conduct conditions: AC B1 for suppliers and AC C1 for operators.
The Standards of Conduct are Ofgem's overarching framework for how heat network suppliers and operators must conduct themselves, under the two parallel Standards of Conduct conditions (AC B1 for suppliers; AC C1 for operators). They sit above the specific Authorisation Conditions and establish the principles that should inform every aspect of the business. Every other consumer-facing obligation — complaints handling, billing transparency, vulnerability support, fair pricing — should be understood in the context of these standards.
Under AC B1 (Supplier Standards of Conduct), suppliers must behave in a manner that is fair, honest, transparent, appropriate, and professional in their dealings with relevant consumers. They must provide information that is complete, accurate, and not misleading. They must make it easy for consumers to contact them and handle enquiries promptly. They must take account of the needs of consumers in vulnerable situations. And they must ensure consumers are treated fairly throughout the duration of their relationship with the supplier.
AC C1 (Operator Standards of Conduct) imposes parallel — but differently scoped — standards on operators in respect of their operational conduct: the maintenance and operation of the network, reliability of supply, and dealings with consumers and third parties arising from operational activity. On most heat networks the same legal entity holds both supplier and operator authorisations, so both conditions apply to that entity. Where supply and operation are split between different entities, the B1 standards sit on the supplier and the C1 standards sit on the operator.
The Standards of Conduct are not aspirational — they are enforceable. Ofgem can take enforcement action against operators or suppliers whose conduct falls short, even if they have technically complied with specific Authorisation Conditions. This means both conditions need to be embedded in the organisation's culture, not just its policy documents. In practice: train all customer-facing staff, review all consumer communications for clarity and fairness, ensure pricing decisions are transparent, monitor service quality, and keep records demonstrating commitment to these principles.
Operators and suppliers need a Standards of Conduct policy setting out how the organisation will meet each principle under both AC B1 and AC C1, with specific commitments, responsibilities, and monitoring arrangements. A customer-facing version should explain what consumers can expect. Both are generated by our platform.
Policy and customer-facing document covering both AC B1 and AC C1 — key Authorisation Condition requirements addressed and cited.
Generate your Standards of Conduct documentationLast checked against official sources: 28 May 2026.