The deadline for all operators and suppliers of heat networks in Great Britain to register their networks with Ofgem is 26th January 2027, barely three months away. Power On, is providing guidance on who needs to register, why, and the possible alternative.
Who needs to register?
Registration is mandatory for any organisation that controls the physical infrastructure and thermal energy transfer (operators) and any organisation that is responsible for customer contracts, billing and customer service (suppliers) of a heat network. This broad scope includes housing associations and local authorities, as well as commercial and residential landlords who manage buildings with communal heating, cooling or hot water via a shared pipework. These are in addition to the more obvious operators and suppliers of district heating networks and communal systems.
Why must they register?
While existing networks received “deemed authorisation” to continue running when the rules took effect in January 2026, formal registration is required by 26th January 2027 to transition to full, permanent authorisation. After the January deadline, operating without registration will be a criminal offence.
Positives for consumer protection
“The overriding goal of the registration process is to bring the heat network sector in line with traditional gas and electricity markets,” says Alex Randall, Business Lead for Sustainable Heat at Power On. “By registering, providers are legally bound to comply with new consumer protection standards, which mandate transparent billing, fair pricing, protection for vulnerable households and formal complaints procedures, all of which is good for the customer and good for the industry.”
Registration also requires networks to demonstrate financial and technical compliance as well as continuity plans and tests designed to show that the management is “fit and proper”.
Alternatives to registration
Whilst this is a positive move for the heat network industry it is understandable that some organisations may find the prospect overwhelming or simply do not have the time, money or resources to register by the deadline. For these organisations, which may include developers, housebuilder, housing associations, local authorities, care homes, student accommodation and buy-to-rent, that do not wish to disperse into becoming an energy provider too, selling their network may be the preferred option.
Selling heat networks before the upcoming January 2027 registration deadline is becoming an increasingly common commercial decision. Many building owners or housing providers are opting to sell their networks to specialist operators, like Power On, to avoid the administrative burden, operational costs, and compliance risks of becoming a regulated energy utility.
Alex says: “Many organisations may understandably decide they do not want to become energy providers. This is perfectly reasonable as it is a specialist area – hence the need for regulation. Selling their heat network may well be their preferred option but time is running out for them to do this, so they must act now.”
If the transfer of ownership and control is finalised prior to the deadline, the new operator/supplier becomes legally responsible for submitting the network’s detailed registration and compliance documentation to Ofgem. For any sale that has not fully closed by the deadline date, the heat network registration will be the responsibility of the existing owner, despite the pending sale and they must complete the registration and contact Ofgem again after the sale to officially log a material change to transfer the operator and supplier authorisations once the sale goes through.
Through its regulated companies, Power On is one of the few organisations that has already registered its heat networks ahead of the January 2027 deadline and is, therefore, able to offer protection to the consumer in terms of pricing, delivery, support for the vulnerable, legal obligations, and more. Giving the consumer protection in turn protects Power On’s own direct customers, like developers and local authorities, who currently own a heat network.
