# The Heat Networks (Market Framework) (Great Britain) (Amendment) Regulations 2025, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations amend the Heat Networks (Market Framework) Regulations 2025 (the “2025 Regulations”). The 2025 Regulations provide for persons carrying on a “regulated activity” in relation to heat networks to be required to hold a “heat network authorisation” conferred by the Gas and Electricity Markets Authority (“Ofgem”). Those with heat network authorisations are referred to as “authorised persons”. The amendments provide for the following:
Certain heat networks providing air-conditioning are excluded from regulation (see new regulation 2A of the 2025 Regulations).
The scope of conditions (“authorisation conditions”) that may be included in a heat network authorisation is extended (see amendments to regulation 20 of the 2025 Regulations).
If an authorisation condition provides that an authorised person must not impose disproportionate charges, Ofgem may specify the methods to be used to determine whether charges are disproportionate (see new paragraph (3A) of regulation 20 of the 2025 Regulations).
Authorised persons who supply heating, cooling or hot water to consumers without agreement as to the terms on which the supply is made are deemed to have made a contract for the supply (see new regulation 27A of the 2025 Regulations). Authorised persons must make a scheme to provide for the terms and conditions of deemed contracts.
The requirement on authorised persons to be members of a redress scheme is extended so as to apply to consumer complaints relating to supply to a “small business” and a “micro-business”, as newly defined (see amendments to regulation 56 of the 2025 Regulations).
Provision is made for a special administration regime for “protected heat network companies” if an application is made to the court for a “heat network administration order”. Authorisation conditions may require authorised persons to pay the costs of a heat network administration order (see amendments to regulation 20, new regulation 23A and new Part 7A of the 2025 Regulations).
Regulation 12 of these Regulations also amends the Heat Network (Metering and Billing) Regulations 2014 to remove requirements on “heat suppliers” to notify certain matters; to make determinations whether it is cost effective and technically feasible to install meters; to install heat cost allocators, thermostatic radiator valves and hot water meters; and to comply with certain requirements as to billing.
A full impact assessment of the effect of the 2025 Regulations on the costs of business, the voluntary sector and the public sector is available alongside the 2025 Regulations on www.legislation.gov.uk. An impact assessment of the effect of these Regulations is also available on that site. Hard copies may be obtained from the Heat Networks Policy team, Department for Energy Security and Net Zero, 55 Whitehall, London SW1A 2HP.

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Source: https://www.legislation.gov.uk/ukdsi/2025/9780348276152/note (the official version)
Page: https://openlegislation.uk/draft-heat-networks-market-framework-great-britain-amendment-regulations-2025/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.