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Heat Network Regulation Is Changing – What It Means for You

The Energy Act 2023 means that Heat Network sector is going through huge transformation as the existing regulations are being upgraded to ensure greater protection for consumers; Our Head of Billing Services, Nikki Reynolds provides an overview regarding what is expected now and what is expected to be phased in, in the not too distant future.

If your heating and hot water are supplied via a communal or district heating system (known as a heat network), a new regulatory framework is on the way to improve consumer protections, ensure fair billing, and set clearer service standards for residents.

At Ginger Energy, we act as your billing agent, working on behalf of your heat supplier to manage the billing and support heat suppliers, managing agents and residents to ensure a smooth transition into the regulations. We’re committed to keeping you informed and supported as these changes are phased in.

Where Are We Now (2024–2025)

Heat networks are currently governed by the Heat Network (Metering and Billing) Regulations 2014. These rules focus primarily on ensuring you are billed fairly and accurately based on your usage.

What This Means for You:

  • Installation of meters both at the entry point to the building and, where possible, inside individual homes

  • Invoices issued at least once per year, based on actual meter readings; if digital billing is used, billing should be at least quarterly.

    Bills must clearly show:

  • Tariff details
  • Consumption data (indicating whether readings are actual or estimated)
  • Tips on improving energy efficiency

    However, these rules do not provide broader consumer protections – such as guaranteed service levels or processes around complaint handling

    Voluntary Protections – The Heat Trust

    To help fill the current regulatory gap, the Heat Trust offers voluntary protection standards for heat network customers. While Ginger Energy can’t register a site directly, we actively support and encourage heat suppliers to register and if if unregistered, adopt Heat Trust scheme principles.

    These include:

  • Fast response to outages or emergencies
  • Support for vulnerable residents or those facing financial difficulties
  • Clear, fair billing and notice of tariff changes
  • Guidance on complaints, and customer service standards

    🔗 Learn more: heattrust.org

    What You Can Expect from Ginger Energy

    As your appointed billing agent, Ginger Energy is already aligned with many of the incoming requirements.

    We provide:

  • Clear, transparent bills showing:

  • Standing charges

  • Unit rates

  • VAT

  • Any usage estimates

  • Have a published complaint process

  • Billing based on actual readings where meters allow

  • Quarterly bills (or more frequent depending on your setup)

  • Help and guidance on interpreting your charges or resolving disputes

    Coming in 2025: New Consumer Protections

    From 1 April 2025, consumers gain access to the Energy Ombudsman, a free and independent service that helps resolve disputes if:

  • Your heat supplier hasn’t resolved your complaint within 8 weeks, or
  • You receive a formal ‘deadlock’ letter

    These protections apply only to complaints made after 1 April 2025 and after your supplier’s complaints process has been followed.

    What’s Coming Next – Ofgem Regulation (From 2026)

    From January 2026, the energy regulator Ofgem will begin overseeing heat networks, setting out mandatory standards and enforcement powers.

    Key Timeline:

    April 2025 Access to Energy Ombudsman and consumer advocacy begins

    January 2026 Ofgem assumes regulatory responsibility for heat networks

    January 2027 All networks must be formally registered with Ofgem

    What This Means for You

    Ofgem’s regulation will bring:

  • Regulatory protection: Ofgem will act if your heat supplier doesn’t meet required standards
  • Transparent pricing: Bills must reflect actual costs and may be benchmarked nationally
  • Stronger service guarantees: Including performance tracking and technical standards
  • Support for vulnerable customers: e.g. password-protected engineer visits, nominated third-party account access
  • Stricter billing controls: Limits on back-billing, clear notices on price changes, and better record-keeping
  • Complaint monitoring: A new digital platform to log and track resident complaints across all networks

    Ginger Energy’s Commitment to You We’re working alongside Ofgem, DESNZ, ADE, and industry partners to support these improvements—and to ensure our systems and service match the evolving requirements.

    We promise to:

  • Represent residents in national consultations
  • Promote Heat Trust standards wherever possible
  • Update our billing systems in line with Ofgem’s guidance
  • Maintain a simple, fair complaints process
  • Enhance our support for vulnerable households

    Questions or Concerns?

    We’re here to help you understand your bill, your rights, and the changes ahead. Don’t hesitate to reach out if you need assistance.

    📞 0345 307 3433 📧 billingteam@gingerenergy.co.uk 🌐 www.gingerenergy.co.uk