The Heat Networks (Market Framework) (Great Britain) Regulations 2025

20 Scope of authorisation conditions

(1) General authorisation conditions or specific authorisation conditions may include— (a) conditions whose object is to limit the number of persons authorised as operators of a single relevant heat network or, in relation to a relevant heat network which has more than one person authorised to operate it, to facilitate the exercise of the functions of— (i) the Regulator; (ii) Citizens Advice, Citizens Advice Scotland or Consumer Scotland; or (iii) the operator of a redress scheme for the purposes of section 47 of the Consumers, Estate Agents and Redress Act 2007 as applied by regulation 56(7) of these Regulations; (b) conditions about the terms on which premises are connected to , or supplied by means of, a relevant heat network; (c) conditions requiring an authorised person to make an offer of connection or supply to premises when asked to do so by the owner, occupier or a party acting on their behalf; (d) conditions about installing and maintaining , and the operation of, equipment for measuring, displaying, recording and regulating consumption of heating, cooling and hot water supplied by means of a relevant heat network; (e) conditions about— (i) the charges payable by heat network consumers, including— (aa) a condition that an authorised person must not charge domestic heat network consumers an amount that exceeds a specified price cap; (bb) a condition that an authorised person must not impose on heat network consumers charges that are disproportionate; (ii) the billing of heat network consumers, including— (aa) a condition that imposes requirements about the bills given to heat network consumers (including requirements about their frequency, accuracy and the use of estimates); (bb) a condition that imposes requirements about the information and explanatory material to be provided to heat network consumers; (cc) a condition that makes provision about the charges that may be made in respect of the costs of providing bills and such information and explanatory material; (iii) service standards (including standards for handling complaints); (iv) the communication of information about the heat network, the services provided or the terms on which the services are provided; (v) the conduct of authorised persons towards heat network consumers or in relation to premises connected, or proposed to be connected, to a relevant heat network, including— (aa) a condition about conduct if payments relating to the supply of heating, cooling or hot water are not made (including restricting when premises may be disconnected); (bb) a condition requiring credit to be provided to heat network consumers with pre-payment meters; (f) conditions relating to price regulation (including by means of regulation of charges or profits); (g) conditions about complying with technical standards including technical standards (including those for which provision is made in a designated document relating to— (i) the design, construction, commissioning, operation or maintenance of a relevant heat network; (ii) the decommissioning of a relevant heat network; (iii) equipment or materials used in the construction, operation or maintenance of a relevant heat network; (iv) the competence of persons engaged in the design, construction, commissioning, operation or maintenance of a relevant heat network; (h) conditions about ensuring the continuity of the supply of heating, cooling and hot water to heat network consumers; (i) conditions about providing information to the Regulator, including a requirement to notify the Regulator of any material change in the operation of a relevant heat network or the supply of heating, cooling or hot water; (j) conditions about the payment of fees to the Regulator, including conditions about the payment of fees— (i) in connection with the conferring of an authorisation; (ii) while an authorisation continues to be in force in relation to a person; (ja) conditions requiring an authorised person to comply with the provisions of a designated document; (jb) conditions— (i) requiring an authorised person to pay such sums relating to the costs of a heat network administration order as may be determined by the Secretary of State under the conditions to such persons as may be so determined for the purpose of— (aa) enabling the Secretary of State to recover losses and expenses referred to in paragraph (5)(a); (bb) reducing or discharging obligations referred to in paragraph (5)(b); (ii) requiring or enabling an authorised person to modify the charges on heat network consumers imposed by the authorised person so as to raise those sums; (iii) requiring the sums so raised to be held on trust pending payment; (k) such other conditions as appear to the Regulator or, when determining conditions under regulation 18, the Secretary of State to be requisite or expedient having regard to the principal objective established in regulation 6 (principal objective of the Regulator) and the duties established in regulations 7 (general duties of the Regulator) and 8 (duty of the Regulator to have regard to interests of consumers). (2) Conditions under paragraph (1)(j) may include provision for payment of fees to the Regulator under regulation 57 (expenses relating to consumer advocacy and advice). (3) General authorisation conditions or specific authorisation conditions may require the authorised person— (a) to comply with any direction given by the Regulator or the Secretary of State in relation to any specified matter or description of matter; (b) not to do or to do any specified thing or description of thing, except so far as the thing is done or not done with the consent of the Regulator or the Secretary of State; (c) to refer for determination by the Regulator or the Secretary of State any specified question or description of question arising under the heat network authorisation; (d) to refer for approval by the Regulator or the Secretary of State— (i) any thing specified as falling to be done under the heat network authorisation; and (ii) any specified contract or agreement made before the conferral of the heat network authorisation. (3A) For the purpose of a condition referred to in paragraph (1)(e)(i)(bb) (disproportionate charges), the Regulator— (a) may from time to time specify the methods that are to be used by the Regulator to determine whether charges are disproportionate; and (b) must publish them in such manner as the Regulator thinks appropriate. (4) In this regulation, “specified” means specified in the condition. (5) For the purpose of this regulation, the costs of a heat network administration order are— (a) losses and expenses— (i) that are incurred by the Secretary of State in, as a result of or in connection with giving relevant financial assistance— (aa) to, or in respect of, a company that is or was subject to the order; or (bb) otherwise in connection with the order; and (ii) that the Secretary of State does not expect to recover (except by means of an authorisation condition); (b) obligations of the company subject to the order to make payments— (i) in respect of the expenses or remuneration of the heat network administrator of the company; (ii) in discharge of a debt or liability of the company arising out of a contract entered into by the heat network administrator at a time when the order was in force; (iii) in respect of interest on relevant financial assistance or any expenses, remuneration, debt or liability referred to in paragraph (i) or (ii), to the extent that the property of the company available to pay them is insufficient. (6) In paragraph (5), “relevant financial assistance” means any of the following— (a) a grant or loan given under section 165 of the Energy Act 2004, as applied by regulation 59D; (b) a sum paid by the Secretary of State in consequence of an indemnity given under section 166 of that Act, as so applied; (c) a sum paid out by the Secretary of State under a guarantee given under section 167 of that Act, as so applied.