Zoned and Loaded: The UK’s Plan to Heat Smarter

• 4 September 2025
• Views

As the UK accelerates its journey towards net-zero, heat networks are emerging as a cornerstone of the country’s low-carbon heating strategy. With sweeping regulatory reforms on the horizon, 2025 marks a pivotal year for the sector. From zoning mandates to consumer protections, the government is turning up the heat on how we warm our homes and businesses.

What are Heat Networks?

Heat networks, also known as district or communal heating, deliver heating, cooling, and hot water from a central source to multiple buildings. They offer a scalable, efficient alternative to individual heating systems, particularly in dense urban environments.

The Regulatory overhaul: what’s changing?

The Heat Networks (Market Framework) (Great Britain) Regulations 2025 lay the foundation for a comprehensive regulatory framework that will transform heat networks into a regulated utility — on par with gas and electricity. Key changes include:

• Ofgem as Regulator: From January 2026, Ofgem will oversee heat networks across Great Britain, ensuring fair pricing, reliable service, and robust consumer protections.
• Mandatory Authorisation: All heat networks must be authorised by Ofgem. Existing networks will receive “deemed authorisation” until January 2027, after which formal applications will be required.
• Consumer Advocacy: From April 2025, customers have access to free advice and dispute resolution via Citizens Advice and the Energy Ombudsman.
• Technical Standards: The Heat Network Technical Assurance Scheme will introduce mandatory design, construction, and operational standards.

Heat Network Zoning: a smarter way to build

One of the most transformative elements of the new framework is heat network zoning. Enabled by the Energy Act, zoning identifies areas where heat networks are the lowest-cost, low-carbon solution for heating. Key aspects are:

• Mandated Connections: Certain buildings, such as new developments, large public buildings, and communal residential blocks, may be required to connect to a heat network within designated zones.
• Local Authority Role: Councils will act as Zone Coordinators, responsible for identifying and managing zones, supported by national guidance and data-driven methodologies.
• Pilot Projects: The government is working with a number of towns and cities to refine zoning approaches and prepare for national rollout.

Heat Network Technical Assurance Scheme (HNTAS)

The HNTAS is a cornerstone of the new regulatory framework, designed to ensure heat networks deliver reliable, efficient, and low-carbon heating. It introduces:

• Mandatory Technical Standards: Covering insulation, flow temperatures, and system design.
• Lifecycle Assessments: Networks must pass checks at design, construction, commissioning, and operational stages.
• Performance Monitoring: Certified networks will report data to a central portal to maintain compliance.
• Governance: Ofgem will regulate the scheme, supported by a Code Manager and independent assessors.

The scheme is outcome-focused, aiming to reduce carbon emissions, improve consumer experience, and boost investor confidence — while remaining proportionate and adaptable to market needs.

Why does it matter?

These reforms aim to unlock billions in investment, create thousands of jobs, and dramatically expand the UK’s heat network footprint — from just 2–3% of heat supply today to a projected 18% by 2050. By zoning in on where heat networks make the most sense, the UK is laying the groundwork for a more efficient, equitable, and sustainable heating future.

What stakeholders need to do now

With the regulatory landscape shifting rapidly, developers, local authorities, investors, and operators must prepare for the incoming changes. New developments, especially those in potential heat network zones, should anticipate connection mandates and design systems that align with the HNTAS standards. Early engagement with local planning bodies and technical advisors will be crucial to ensure compliance, avoid retrofitting costs, and maximise long-term value.

Stakeholders should begin auditing existing projects, upskilling teams, and engaging with local authorities to understand zoning plans and technical requirements. The sooner organisations align with the upcoming framework, the better positioned they’ll be to lead in the UK’s low-carbon heating transition.

Owing to their adaptability, heat networks represent a no- and low-regrets infrastructure investment to provide efficient, low-carbon heat to dense urban areas as part of the UK’s transition to Net Zero carbon emissions

https://www.energy-uk.org.uk/publications/towards-a-roadmap-for-heat-networks/