Ofgem's heat network authorisation conditions, explained

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• A1Application of general authorisation conditionsEveryoneSets out who each section applies to: Section A to every authorised person, Section B to suppliers and Section C to operators. Section B doesn't apply to supply only through industrial heat networks, and Section C doesn't apply to operating only industrial or self-supply networks.
• A2InterpretationEveryoneExplains how the conditions are to be read.
• A3DefinitionsEveryoneDefines the terms used throughout, such as Complaint, Vulnerable Situation and Material Assets.
• A4KeyRegistrationEveryoneExisting operators and suppliers must register their heat networks on Ofgem's digital service by 26 January 2027 and keep the information accurate.
• A5Nominated OperatorEveryoneWhere more than one organisation operates a network, they should agree one of them to act as the contact point with Ofgem.
• A6KeyFair PricingEveryoneCharges to consumers must be fair.
• A7Cost AllocationEveryoneCharges must be structured and linked to costs fairly.
• A8KeyOngoing Fit and Proper RequirementEveryonePeople with significant managerial responsibility or influence must be fit and proper. You make a declaration at registration, and it lasts three years.
• A9Provision of Information to the AuthorityEveryoneGive Ofgem the information it asks for, including regular data reporting such as yearly financial resilience data.
• A10Open and Co-operativeEveryoneBe open and co-operative with Ofgem.
• A11Independent AuditsEveryoneOfgem can require an independent audit of compliance.
• A12KeyOperational Arrangements and Material AssetsEveryoneCovers the operational arrangements and material assets the network relies on, including keeping a register of material assets.
• A13KeyAvailability of Resources and Financial Responsibility PrincipleEveryoneAct responsibly to keep enough resources to run the network and meet liabilities as they fall due. Tell Ofgem immediately if your directors don't have a reasonable expectation that the resources will be available. Money collected for maintenance, repair or replacement must stay available for that purpose.
• A14KeyContinuity ArrangementsEveryoneKeep a continuity plan setting out how the network would be handed to a successor. Ofgem asks for a yearly confirmation that it is in place and up to date.
• A15RevocationEveryoneSets out when Ofgem can revoke an authorisation.
• B1KeySupplier Standards of ConductSuppliersTreat every consumer fairly, including occupants in vulnerable situations. Five principles: behaviour, information, customer service, vulnerability and consumer engagement.
• B2KeyHeat Supply ContractsSuppliersSupply heat under a heat supply contract. A lease, tenancy or service charge agreement can count.
• B3Contract Changes InformationSuppliersTell consumers about changes to their contract terms.
• B4KeyComplaintsSuppliersHave and follow a complaints handling procedure, display or signpost it in each building, make residents aware of it at least once a year, keep records, and explain the route to the Energy Ombudsman.
• B5KeyAssistance and AdviceSuppliersSignpost free advice, such as Citizens Advice, and run an enquiry service that can receive enquiries 24 hours a day. You don't have to respond outside usual working hours.
• B6KeyProvision of Billing and Price Transparency of InformationSuppliersBills and billing information must be accurate and include set information. Service charge arrangements are covered, with some differences.
• B7KeyBack-billingSuppliersOfgem aims to stop bills for heat used more than 12 months before the bill where the consumer isn't at fault. Where heat is charged through a service charge, section 20B of the Landlord and Tenant Act 1985 (18 months) takes precedence.
• B8KeyPriority Services RegisterSuppliersKeep a register of consumers in vulnerable situations and offer them free priority services.
• B9Security Deposits, Payment Difficulties, Disconnections and Direct DebitsSuppliersSupport consumers in payment difficulty. Strict limits apply to disconnection.
• B10Prepayment MetersSuppliersRules on installing and using prepayment meters.
• B11Self-DisconnectionSuppliersRules on supporting consumers who self-disconnect, for example when prepayment credit runs out.
• B12Social Obligations ReportingSuppliersReport social obligations data to Ofgem.
• C1Operator Standards of ConductOperatorsSets standards of conduct for operators.
• C2KeySecurity of SupplyOperatorsCovers keeping the supply of heat secure and reliable.

Plain-English summaries for orientation only. The authorisation conditions and Ofgem's guidance are the authoritative text.