UK heat networks face new technical standards and regulations

2026 is shaping up to be a transformational year for the heat network sector. The Department for Energy Security and Net Zero (DESNZ) recently published its Warm Homes Plan and has announced a (much-anticipated) consultation on the Heat Network Technical Assurance Scheme (HNTAS). At the end of January, the final tranche of the Heat Network (Market Framework) Regulations 2025 came into effect.

Warm Homes Plan 

On 21 January 2026, DESNZ published the Warm Homes Plan: its blueprint for investment in the residential energy sector.

Chapter 5 covers heat networks, drawing together existing initiatives, particularly heat network zoning and market regulation, into a coherent delivery plan. New announcements include the extension of Green Heat Network Funding (GHNF) to 2029/30 (at £195m per year) and confirmation of an ambitious target of meeting 7% of heat demand in England via heat networks by 2035 (equivalent to 27TWh), more than doubling the current output.

In order to promote uptake, the plan recognises the importance of making heat networks trustworthy, financially fair and reliable for end users. It does so by establishing five pillars:

• To build public trust, continue to deliver market regulation to align consumer protections with those in the gas and electricity markets. This will include the new measures introduced under the Heat Network (Market Framework) Regulations 2025 and HNTAS.
• On pricing, support is focused on heat networks where they offer the lowest‑cost, low‑carbon option. The GHNF will provide £195m per year to leverage private capital, complemented by blended finance via the National Wealth Fund. Cost reductions are expected from supply‑chain growth, access to low‑cost heat sources and zoning‑driven certainty. The government will explore ways to reduce electricity costs and consult on options to make electrification more economical, while Ofgem’s fair pricing framework from 2026 will increase transparency and protect consumers, with the aim that heat networks always mean lower bills than the alternative.
• Supply chain capacity will be expanded through clear demand signals, a published national pipeline, open procurement requirements and data‑sharing. Zoning and proposed installation and maintenance licences will standardise development and give networks utility‑like powers, supported by skills and innovation programmes.
• Better access to low‑carbon heat sources will be secured via zoning powers requiring certain heat sources to connect. From 2030, a carbon limit and phased technical standards will drive decarbonisation and efficiency, with networks using diverse heat sources (such as waste heat, rivers, ground heat) to ease grid pressure and support new housing. Heat networks’ flexibility, including thermal storage and time‑of‑use tariffs, will help optimise use of the clean power system and lower consumer costs. Projects co‑locating with data centres, such as Old Oak and Park Royal, illustrate potential carbon and cost savings.
• Heat network zoning will designate areas where heat networks are the most affordable solution, giving certainty to consumers and investors. The Warm Homes Agency will act as national zoning authority, publishing a national pipeline, while local zone coordination bodies will lead designation, developer appointments and delivery. Zoning will allow certain new and existing buildings and heat sources to be required to connect, but only where this is clearly the most affordable option. It is expected to accelerate network development, support new towns, and aim to designate at least 10 major zones early on, underpinned by a new digital zoning map.

Consultation on Heat Network Technical Assurance Scheme 

To support delivery of the Warm Home Plan objectives, DESNZ concurrently published a long-awaited consultation on technical requirements for existing and future heat networks. Of key importance is the development of two new standards: the Heat Network Technical Standard (TS1) (published in November 2025, to replace CIBSE CP1) and the Metering and Monitoring Standard (new with this consultation).

DESNZ states that "we are keen to ensure that the introduction of HNTAS does not place undue burden or cost on heat network operators or heat network consumers." However, higher technical thresholds and retrospective effect have the potential to increase capital and operational costs for developers and operators, including for existing schemes (many of which have already been handed over by the developer to management companies).

HNTAS requirements will apply to new networks from scheme launch in 2027, with assessment gateways throughout feasibility, design, construction and operation phases. Certificate 1 will be required after commissioning but before customers are supplied heating, and Certificate 2 after two years of operation.

For existing networks, those built after 2014 must demonstrate minimum metering, monitoring and threshold performance within three years, with full certification required within six years. Pre-2015 networks receive longer timeframes: initial compliance within three years, full certification within eight years.

Operators should begin performance assessments now to understand what improvement plans are necessary. Networks unable to cost-effectively meet standards may need to declare "End of Life" status within three years and plan replacement.

The consultation remains the last opportunity for representations to be made by stakeholders in the sector and will close on 15 April 2026.

Heat Networks (Market Framework) (Great Britain) Regulations 2025

On 27 January 2026, the remaining parts of the Heat Networks (Market Framework) (Great Britain) Regulations 2025 came into force. They aim to protect consumer interests by ensuring reliable and affordable services while promoting sustainability and adherence to net-zero targets (read more in our Insight).

The immediate impact is that, after 27 January 2026, any new scheme must apply for authorisation.  Operators and suppliers of existing networks will be deemed authorised for now, but they must each register for authorisation before 26 January 2027 using the Heat Networks Digital Service. 

Action points for operators and suppliers

Current and prospective operators should:

• Prepare for authorisation with Ofgem before 26 January 2027;
• Assess compliance with HNTAS.
• Prepare and implement new governance structures and information processes.
• Review and prepare for compliance with updated financial resilience requirements.
• Prepare sufficient consumer advice and information systems.
• Review existing heat network agreement change-in-law provisions.

Operators should prioritise establishing robust record-keeping systems, as Ofgem will have powers to request documents, inspect premises and remove materials from regulated entities, with operators potentially required to cover reasonable inspection costs.