How do heat network regulations affect social housing landlords? 

When attempting to handle the dual considerations of how to keep costs under control while providing tenants with reliable heating, more social housing landlords are engaging with heat networks – in many instances owning and managing them. While many social housing landlords are concerned about the changes in legal regulations that target the sector, upcoming reforms to the way that heat networks are regulated also need to be accounted for.  As such, it is worth understanding what the new responsibilities are and how social housing landlords can demonstrate compliance with Ofgem.  

How are heat network regulations changing? 

By January 2027, all existing heat network operators and suppliers must be registered with Ofgem. Any new heat network operators and suppliers will also be expected to register. This must be done through the digital service and aims to provide a more uniform approach to enhance compliance.  

Once registered with Ofgem, social housing landlords who have responsibility for a heat network will be treated as heat network operators. This means that they must comply with Ofgem’s Authorisation Conditions. These conditions aim to ensure that customers are treated fairly, that heat supply contracts are clear, and that vulnerable tenants are protected through priority access.  

As the heat network operator, there is an expectation that social housing landlords will take a more accurate approach to billing for the use of heat. It will no longer be permissible to base bills on estimates or flat-rate charges when the ability to gather accurate measures of actual consumption is available. If social housing landlords are found to be in dereliction of their duties as heat network operators, they may be reported to the Energy Ombudsman if complaints are not resolved.  

What should social housing landlords do to manage heat network obligations? 

A high number of heat networks are owned and managed by social housing landlords, so the overlap between different responsibilities will be widespread throughout the sector. It is therefore vital for social housing landlords to understand their position and respond accordingly. This will mean determining their role in a heat network and understanding the ways that improving existing systems or connecting to new networks might change legal responsibilities.  

Connection points, network capacity, operating temperatures, heat interface units, on-site pipework, commissioning, monitoring and long-term maintenance all fall under the scope of the Ofgem regulations and need to be monitored. Someone is responsible for the operation and billing, how tariffs are calculated, how complaints are handled and providing residents with the information they need. A social housing landlord’s role is to ensure that these points are met, even if the specific responsibility resides elsewhere.  

To protect from complaints, social housing landlords should maintain robust records to demonstrate compliance. Heat charges need to be kept separate from rent or service charges to highlight how they have been managed. Adhering to the new standards will involve ongoing maintenance tracking that will be reflected in the records kept.  

Seeking expert legal support will be vital for staying compliant with the full spectrum of responsibilities alongside other legal considerations that impact social housing landlords. Our team also includes professionals who specialise in energy infrastructure law, so we can provide a cohesive legal framework to ensure full compliance.. We are here to ensure that no aspect is overlooked.  

For full support with the full spectrum of legal responsibilities affecting social housing landlords, speak to our team today.