Heat Network Regulation and Zoning

The heat networks sector is at the start of a major transition, facing its first wholesale regulation aimed at protecting customers, improving technical standards, boosting investor confidence and decarbonising the sector.  

In conjunction with this, heat “zones” will create geographical areas, within which, connection into a heat network will become the default for new build development and, potentially existing buildings too.  The intention is to create off-take demand in order to drive investor confidence.

Who will be caught?

New regulated activities of a heat “supplier” and a network “operator” have been created and apply to:

• Existing and future networks
• Heat, ambient and cooling networks
• Residential property developers and landlords 
• Commercial property owners and landlords 
• Public and private sector organisations
• Councils and registered social housing providers

It will be an offence to carry out either role without authorisation and so it’s essential that landowners understand their compliance obligations and the consequences of failing to meet them.  

Key date

27 January 2026 marks the date from which operators and suppliers will have a legal obligation to comply with minimum standards.  

The Freeths team can help you navigate:

• How the regulations might apply to your organisation and which heat networks are caught
• Your role as a heat network operator or supplier and whether this can be delegated to a third party
• Due diligence on existing contracts and leases that need amending to ensure compliance
• Future proofing contracts currently being procured and negotiated.