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.
The papers across are kept up to date as new legislation, consultation responses and guidance are published. They reflect the latest consultations and guidance released in September 2025.
Heat network regulation
What’s coming?
To help achieve its ambition of heat networks meeting one fifth of the UK’s heat demand by 2050, Government has sought to create customer demand and boost investor confidence by establishing heat ‘zones’.
Residential landlords
Are you ready for heat network regulation?
Heat networks are a key part of the UK Government’s strategy for decarbonising heat consumption and ending our reliance on gas. They come in a range of types and sizes, from single buildings to city-wide schemes, and in the right setting can be the most efficient and cost-effective solution.
Key date
27 January 2026 marks the date from which operators and suppliers will have a legal obligation to comply with minimum standards.
Our 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.
Contact us today
Whatever your legal needs, our wide ranging expertise is here to support you and your business, so let’s start your legal journey today and get you in touch with the right lawyer to get you started.
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