Over 94% of heat networks yet to register with Ofgem

Ofgem has published its first monthly update on the number of heat networks which have registered with the regulator so far and it’s 782. That’s equivalent to 5.5% of heat networks of the more than 14,000 estimated heat networks in the UK.

It is estimated that two-thirds of those 14,000 heat networks are owned and operated by social landlords.

If heat network operators do not register their heat networks by 26th Jan 2027 they will be in breach of the new regulations and may face enforcement action and financial penalties from Ofgem.

Speaking at the ADE Heat Networks conference Helena Charlton, Director of Heat Networks at Ofgem addressed the lack of heat network registrations, saying, “We published our first monthly register of registered heat networks, and there’s only about 750 heat networks that are fully registered on that.

“You’ve only got 96 days. We’ve got a big clock ticking at Ofgem where we’re watching the days go by, tweaking every day what we can do to support you to get on that path, and we’ll be carrying out targeted outreach over the next few weeks and months.

“Where we do see signs of foot dragging, that’s not going to be acceptable. Hiding from the regulations or thinking they don’t affect you is not going to be an option. We’ve been very clear and increasingly clear that it’s your duty to register, and that Ofgem has the ability to use its full range of compliance and enforcement techniques to oblige you to do that if you’re not there.

“We’re ready to take those actions where we see that people are, you know, rather than needing help to get there, they’re dragging their feet.”

FairHeat an energy consultancy, focused on heat networks and building performance, believe the new registration process will show that there are many more than 14,000 heat networks in the UK.

This would help to strengthen the industry’s case for more funding for the Heat Network Efficiency Scheme (HNES) which is currently only £15m a year.

Gareth Jones, managing director of FairHeat, said: “It is really important for heat network operators and suppliers to register their heat networks by the end of 26th January 2027. If they do not, they will be in breach of the new regulations and may face enforcement action and financial penalties from Ofgem.

“It is estimated that two-thirds of heat networks are operated and supplied by social landlords. As a new procedure, the registration process may throw up questions that social landlords have not covered before such as: How many vulnerable customers does your heat network supply heat, cooling or hot water to? Do you have a priority services register? Are customers provided year-on-year consumption data on their bill?

“Heat network registration may feel challenging, particularly while landlords are managing wider regulatory pressures, limited capacity and gaps in existing information.

“However, registering accurately and transparently creates a valuable baseline for both landlords and Ofgem. Indeed, organisations should see the Ofgem registration process as a mechanism to better understand their networks, customers and processes. If done properly, it can be used to help operators begin to identify which heat networks need maintenance and investment.

“With less than 100 days to go until the registration deadline, now is the time for heat network operators and suppliers to gather all the regulatory information they need about their heat networks and to get on the front foot.

“When registration is completed next January, we believe the data will reveal that there are many more than 14,000 heat networks in the UK and this will help to strengthen the case for greater government investment in the Heat Network Efficiency Scheme (HNES) to make sure that the funding more adequately covers the quantity and quality of UK heat networks.”