Heat Network Compliance

White Paper Series

Heat Network Compliance White Papers

Specialist analysis of the Ofgem heat network regulatory regime — written for operators, suppliers, housing associations, local authorities, and the consultants who advise them. All papers are based on the final Authorisation Conditions determined by Ofgem on 13 January 2026.

Whose Rules Win? Ofgem has settled more of the heat charge overlap than people think, and left the hardest parts untouched

September 2026  |  Hamish McDonald, Heat Network Compliance

Ofgem's conditions, the Landlord and Tenant Act 1985 and consumer contract law all reach the same heat bill. Ofgem's 'case by case' answer has been read as a refusal to engage — in practice it gives housing law express precedence in two places and builds accommodations into several conditions. This paper covers where Ofgem has adapted, where heat regulation exposes existing leasehold duties, the four questions it has not resolved, and what changes when the Leasehold and Freehold Reform Act 2024 commences — including a back-billing gap nobody has closed.

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Who Pays for the Pipe: Condition A7, and why cost allocation is a decision about people, not accounts

September 2026  |  Hamish McDonald, Heat Network Compliance

Every cost allocation decision determines which residents pay for what. Move a cost from the unit rate into the standing charge and you have shifted it from high-consumption residents onto low-consumption ones — not the same as shifting it from those who received the most heat. This paper explains the three axes of allocation, the guidance’s default cost treatment, and why following defaults without visibly weighing consumer impact answers only half the question A7 asks.

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No Number to Hit: Condition A6, the fairness test, and the questions Ofgem has already published

September 2026  |  Hamish McDonald, Heat Network Compliance

Condition A6 sets no price cap, no margin ceiling and no prescribed rate of return. It creates a substantive duty without a numerical safe harbour, and delegates its content to guidance that carries an appendix listing the questions Ofgem expects to consider when deciding whether a price is fair. This paper sets out what the six pricing principles require, where the sharp edges are in procurement and outsourcing accountability, and what the published fairness test questions reveal about how an assessment would run.

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The Heat the Meters Do Not See: The gap between a building’s bulk meter and its dwelling meters, and what Condition A7 does and does not let you do about it

September 2026  |  Hamish McDonald, Heat Network Compliance

A dwelling meter records what crosses its boundary and nothing else, and on a communal system the difference is real heat that someone pays for. Ofgem sets no rule on how much of a building’s heat cost may follow the meter. Germany and Slovakia both concluded that decision could not be left to discretion. This paper sets out what Condition A7 does and does not permit, and why the gap is widest in the newest buildings.

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The Contract You Never Signed: Deemed Contracts, the Obligation to Supply, and Why B2 Is Not the Delete Button Operators Think It Is

July 2026  |  Hamish McDonald, Heat Network Compliance

A deemed contract is not a document you write — it is a relationship the law creates wherever a real gap exists, and it arose across Britain’s heat networks on 27 January 2026. This paper sets out the gap test that decides who is actually on deemed terms, the scheme and notice machinery buried in the Regulations, and why B2.17 forecloses the migration operators most want to make.

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One Complaint, Two Ombudsmen: Social-Landlord Heat Complaints and a Jurisdictional Boundary Drawn in Pencil

July 2026  |  Hamish McDonald, Heat Network Compliance

A tenant's cold radiator can be a housing complaint and a heat network complaint at the same time. The Energy Ombudsman's exclusion is conjunctive, not a housing exemption; Ofgem's guidance routes service charge billing to the Housing Ombudsman and names the First-tier Tribunal as the main route inside the Landlord and Tenant Act framework. This paper maps what has been allocated, what has not, and why the mixed incident is the normal case.

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The Bill You Left Too Late: Condition B7, Service Charges, Obstruction and the Back-Billing Boundary

July 2026  |  Hamish McDonald, Heat Network Compliance

Condition B7 caps back-billing at twelve months — except where the charge is a Service Charge, when it steps back entirely and the leasehold regime's eighteen-month clock takes over. This paper sets out the definitional boundary, the evidential threshold for the obstruction exception, and the four error patterns operators fall into on both sides of it.

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The Exit Right That Opens Onto Nowhere: Condition B3, Disadvantageous Changes and Consumer Protection on a Monopoly Network

July 2026  |  Hamish McDonald, Heat Network Compliance

Condition B3 gives heat network consumers a termination right borrowed from competitive energy markets — on a monopoly network, it opens onto nowhere. This paper explains what B3 actually requires, the narrow B3.6 service charge carve-out, and why the condition's real force is the documented notice it puts in the consumer's hands.

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Getting Prepayment Meters Right on Heat Networks: Consent, Debt Triggers and Vulnerability Protections under B10

May 2026  |  Hamish McDonald, Heat Network Compliance

Condition B10 sets explicit consent requirements, a Debt Trigger test, vulnerability protections, and continuing obligations for prepayment meters. This paper sets out what the regime actually requires, where operator policy typically goes wrong, and what it costs.

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The Energy Ombudsman Will Be Your First Regulator

April 2026  |  Hamish McDonald, Heat Network Compliance

The Energy Ombudsman has been the statutory redress body for heat network consumers since April 2025 — complaint-led, process-bound, and unaffected by Ofgem's enforcement timetable. This paper explains why consumer redress is the immediate enforcement risk, how an adverse Ombudsman finding can travel to Ofgem under paragraph 10.13 of its Terms of Reference, and what documentation set determines whether a complaint is contained or escalates.

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The Operator's Guide to B9: Debt Handling Under the Ofgem Authorisation Conditions

April 2026, updated August 2026  |  Hamish McDonald, Heat Network Compliance

Practical operational guide for UK heat network operators on B9 debt handling: from arrears identification through Phase 1 engagement to Phase 2 disconnection, with binary decision points at each stage. Built against the final Ofgem Authorisation Conditions and Consumer Protection Guidance published 13 January 2026.

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Vulnerability, the Priority Services Register, and Protection from Disconnection on Heat Networks: A regulatory reality check

April 2026  |  Hamish McDonald, Heat Network Compliance

The Ofgem regime contains three separate rules about vulnerable customers, routinely muddled together in housing-sector policy. This paper explains the three rules, why the distinction matters, and what it costs to get wrong.

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Navigating the Ofgem Regime: The Compliance Challenge Facing UK Heat Network Operators and How Technology Can Help

March 2026  |  Hamish McDonald, Heat Network Compliance

Sets out the scale of the compliance challenge facing heat network operators and how a specialist SaaS platform can close the gap between Ofgem's requirements and operators' current documentation capacity.

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