# The Heat Networks (Market Framework) (Great Britain) Regulations 2025, Regulation 45: Maximum amount of penalty or compensation


(1) The maximum amount of penalty that may be imposed on an authorised person in respect of a contravention is the amount set out in paragraph (3).
(2) The maximum amount of compensation that an authorised person may be required to pay in respect of a contravention is the amount set out in paragraph (3).
(3) The amount is the higher of—
(a) 10% of the authorised person’s turnover; and
(b) £1 million.
(4) Paragraphs (1) to (3) are subject to paragraph (5) if, in respect of a contravention, both a penalty is imposed and compensation is required to be paid.
(5) The maximum amount in total of the penalty and compensation combined in respect of the contravention is the amount set out in paragraph (3).
(6) For the purposes of this regulation, a person’s turnover must be determined in the same way as a licence holder’s turnover is determined under the Electricity and Gas (Determination of Turnover for Penalties) Order 2002.
(7) In this regulation—
“compensation” means compensation that an authorised person is required to pay by a consumer redress order;
“penalty” means a penalty imposed on an authorised person under regulation 31.

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Source: https://www.legislation.gov.uk/ukdsi/2025/9780348266474/regulation/45 (the official version)
Page: https://openlegislation.uk/draft-heat-networks-market-framework-great-britain-regulations-2025/regulation-45
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.