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79 provisions
37 Consumer redress orders
(1) This regulation applies where the Regulator is satisfied that—
(a) an authorised person has contravened, or is contravening, any authorisation condition or relevant requirement; and
(b) as a result of the contravention, one or more heat network consumers have suffered loss or damage or been caused inconvenience.
(2) The Regulator may make an order (a “consumer redress order”) requiring the authorised person to do such things as appear to the Regulator necessary for the purposes of—
(a) remedying the consequences of the contravention; or
(b) preventing a contravention of the same or a similar kind from being repeated.
(3) A consumer redress order must specify the following—
(a) the authorised person to whom the order applies;
(b) the contravention in respect of which the order is made;
(c) the affected consumers, or a description of such consumers;
(d) the requirements imposed by the order;
(e) the date by which the authorised person must comply with such requirements.
(4) As soon as practicable after making a consumer redress order, the Regulator must—
(a) serve a copy of the order on the authorised person to whom the order applies; and
(b) either—
(i) serve a copy of the order on each affected consumer; or
(ii) publish the order in such manner as the Regulator considers appropriate for the purpose of bringing it to the attention of affected consumers.
(5) The date specified in a consumer redress order under paragraph (3)(e) may not be earlier than the end of the period of 7 days beginning with the date of the service of a copy of the order on the authorised person.
(6) Different dates may be specified under paragraph (3)(e) in relation to different requirements imposed by the order.
(7) This regulation is subject to regulations 38 to 44.
(8) In this regulation and in regulations 38 to 44—
“affected consumers”, in relation to a consumer redress order (or proposed order), are those heat network consumers that the Regulator is satisfied have suffered loss or damage, or been caused inconvenience, as a result of the contravention in respect of which the order is (or would be) made;
“consumer redress order” means an order under paragraph (2).
(1) The things mentioned in regulation 37(2) that an authorised person may be required to do under a consumer redress order (“the required remedial action”) include, in particular—
(a) paying an amount to each affected consumer by way of compensation for the loss or damage suffered, or for the inconvenience caused, as a result of the contravention;
(b) preparing and distributing a written statement setting out the contravention and its consequences;
(c) terminating or varying any contracts entered into between the authorised person and affected consumers.
(2) Where the required remedial action includes the payment of compensation, the order must specify—
(a) the amount of compensation to be paid; and
(b) the affected consumers, or a description of such consumers, to whom it is to be paid.
(3) Where the required remedial action includes the preparation and distribution of a statement, the order may specify the information to be contained in the statement and the form and manner in which it is to be distributed.
(4) The manner so specified may in particular include—
(a) sending a copy of the statement to each affected consumer;
(b) publishing the statement in such manner as the Regulator considers appropriate for the purpose of bringing the statement to the attention of those consumers.
(5) Where the required remedial action includes the termination or variation of a contract with an affected consumer—
(a) the order may specify the terms on which the contract is to be terminated or the way in which it is to be varied;
(b) the requirement has effect only if, and to the extent that, the affected consumer consents to the termination of the contract on those terms or to its variation in that way; and
(c) the order may specify the steps to be taken by the authorised person for the purpose of enabling the affected consumer to give such consent.
39 Other procedural requirements in relation to consumer redress orders
(1) Before making a consumer redress order the Regulator must give notice stating that it proposes to make the order.
(2) A notice under paragraph (1) must specify—
(a) the authorised person to whom the order will apply;
(b) the contravention in respect of which the order is to be made;
(c) the affected consumers, or a description of such consumers;
(d) the requirements to be imposed by the order and the period within which such requirements are to be complied with; and
(e) the time (not being less than 21 days beginning with the relevant date) within which representations or objections with respect to the proposed order may be made,
and the Regulator must consider any representations or objections which are duly made and not withdrawn.
(3) Before varying any proposal stated in a notice under paragraph (1) the Regulator must give notice specifying—
(a) the proposed variation and the reasons for it; and
(b) the time (not being less than 21 days beginning with the relevant date) within which representations or objections with respect to the proposed variation may be made,
and must consider any representations or objections which are duly made and not withdrawn.
(4) Before revoking a consumer redress order the Regulator must give notice—
(a) stating that it proposes to revoke the order and the reasons for doing so; and
(b) specifying the time (not being less than 21 days beginning with the relevant date) within which representations or objections to the proposed revocation may be made,
and must consider any representations or objections which are duly made and not withdrawn.
(5) A notice required to be given under this regulation is to be given—
(a) by serving a copy of the notice on the authorised person; and
(b) either—
(i) by serving a copy of the notice on each affected consumer; or
(ii) by publishing the notice in such manner as the Regulator considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of affected consumers.
(6) The “relevant date”, in relation to a notice under this regulation, is—
(a) in a case where the notice is published in accordance with paragraph (5)(b)(ii), the date on which it is published;
(b) in any other case, the latest date on which a copy of the notice is served in accordance with paragraph (5)(a) and (b)(i).
40 Requirement to publish statement of policy with respect to consumer redress orders
(1) The Regulator must as soon as reasonably practicable after this regulation comes into force prepare and publish a statement of policy with respect to—
(a) the making of consumer redress orders; and
(b) the determination of the requirements to be imposed by such orders (including, in particular, the considerations the Regulator will have regard to in determining such requirements).
(2) The Regulator must have regard to its current statement of policy—
(a) in deciding whether to make a consumer redress order; and
(b) in determining the requirements to be imposed by any such order.
(3) The Regulator may revise its statement of policy and, where it does so, must publish the revised statement.
(4) Publication under this regulation is to be in such manner as the Regulator considers appropriate for the purpose of bringing the matters contained in the statement of policy to the attention of persons likely to be affected by them.
(5) The Regulator must consult such persons as it considers appropriate when preparing or revising its statement of policy.
(6) It is immaterial for the purposes of paragraph (5)whether consultation is carried out before or after the coming into force of this regulation.
The Regulator may not give a consumer redress order in respect of a contravention later than the end of the period of 5 years from the time of the contravention, unless before the end of that period—
(a) the notice under regulation 39(1) relating to the order is served on the authorised person;
(b) a notice relating to the contravention is served on the authorised person under regulation 48(2); or
(c) a final or provisional order is served on the authorised person.
(1) Compliance with a consumer redress order is enforceable by civil proceedings by the Regulator—
(a) for an injunction or interdict;
(b) for specific performance of a statutory duty under section 45 of the Court of Session Act 1988; or
(c) for any other appropriate remedy or relief.
(2) Proceedings under paragraph (1) are to be brought—
(a) in England and Wales, in the High Court; or
(b) in Scotland, in the Court of Session.
(3) The obligation of an authorised person to comply with a consumer redress order is a duty owed to any person who may be affected by a contravention of the order.
(4) Without limiting the Regulator’s right to bring civil proceedings under paragraph (1), a duty owed to any person (“P”) by virtue of paragraph (3) may be enforced by civil proceedings by P for any appropriate remedy or relief.
(5) For the purposes of paragraph (4), the duty owed to P may in particular be enforced by P as if it were contained in a contract between P and the authorised person who owes the duty.
(1) An authorised person in respect of whom a consumer redress order is made may make an application to the court under this regulation if the person is aggrieved by—
(a) the making of the order; or
(b) any requirement imposed by the order.
(2) An application under paragraph (1) must be made within 42 days beginning with the date of service on the authorised person of a copy of the order under regulation 37(4)(a).
(3) On an application under paragraph (1) the court may—
(a) quash the order or any provision of the order; or
(b) vary any such provision in such manner as the court considers appropriate.
(4) The court may exercise the powers under paragraph (3) only if it considers it appropriate to do so in all the circumstances of the case and is satisfied of one or more of the following grounds—
(a) that the making of the order was not within the power of the Regulator under regulation 37;
(b) that any of the requirements under regulations 37(4) and 39 have not been complied with in relation to the making of the order and the interests of the authorised person have been substantially prejudiced by the non-compliance;
(c) that it was unreasonable of the Regulator to require something to be done under the order (whether at all or in accordance with the provisions of the order).
(5) If an application is made under this regulation in relation to a consumer redress order, a requirement imposed by the order does not need to be carried out in accordance with the order until the application has been determined.
(6) Where the court substitutes a lesser amount of compensation for an amount required by the Regulator in a consumer redress order, it may require the payment of interest on the substituted amount at such rate, and from such date, as it considers just and equitable.
(7) Where the court specifies as a date by which any compensation under a consumer redress order is to be paid a date before the determination of the application under this regulation, it may require the payment of interest on the amount from that date at such rate as it considers just and equitable.
(8) Except as provided by this regulation, the validity of a consumer redress order is not to be questioned by any legal proceedings whatever.
(1) If—
(a) compensation is required to be paid under a consumer redress order; and
(b) it is not paid by the date by which it is required to be paid in accordance with the order,
the unpaid balance from time to time carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838.
(2) The Regulator may not make a consumer redress order where it is satisfied that the most appropriate way of proceeding is under the Competition Act 1998.
(3) The Regulator’s power to make a consumer redress order as a result of a contravention of a relevant condition or requirement is not to be taken as limiting the Regulator’s power to impose a penalty under regulation 31 in relation to the same contravention (whether instead of, or in addition to, making a consumer redress order).
(1) The maximum amount of penalty that may be imposed on an authorised person in respect of a contravention is the amount set out in paragraph (3).
(2) The maximum amount of compensation that an authorised person may be required to pay in respect of a contravention is the amount set out in paragraph (3).
(3) The amount is the higher of—
(a) 10% of the authorised person’s turnover; and
(b) £1 million.
(4) Paragraphs (1) to (3) are subject to paragraph (5) if, in respect of a contravention, both a penalty is imposed and compensation is required to be paid.
(5) The maximum amount in total of the penalty and compensation combined in respect of the contravention is the amount set out in paragraph (3).
(6) For the purposes of this regulation, a person’s turnover must be determined in the same way as a licence holder’s turnover is determined under the Electricity and Gas (Determination of Turnover for Penalties) Order 2002.
(7) In this regulation—
“compensation” means compensation that an authorised person is required to pay by a consumer redress order;
“penalty” means a penalty imposed on an authorised person under regulation 31.
(1) The following functions are exercisable concurrently by the GEMA and the Competition and Markets Authority (“CMA”) so far as they relate to commercial activities connected with the supply of heating, cooling or hot water to heat network consumers by means of a relevant heat network.
(2) The functions are—
(a) the functions of the CMA under Part1 of the Competition Act 1998 (other than sections 31D(1) to (6), 35C, 38(1) to (6), 40B(1) to (4) and 51) that relate to any of the following—
(i) agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act;
(ii) conduct of the kind mentioned in section 18(1) of that Act; or
(iii) transferred EU anti-trust commitments or transferred EU anti-trust directions (as defined in section 40ZA of that Act); and
(b) the functions of the CMA under Part 4 of the Enterprise Act 2002 (other than sections 166, 167C, 171 and 174E) that are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013).
(3) So far as necessary for the purposes of, or in connection with, paragraphs (1) and (2)—
(a) references in Part 1 of the Competition Act 1998 (including references in provisions of the Enterprise Act 2002 applied by that Part) to the CMA are to be read as including a reference to the GEMA (except in sections 31D(1) to (6), 35C, 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act);
(b) references in Part 4 of the Enterprise Act 2002 to the CMA (including references in provisions of that Act applied by that Part) are to be read as including a reference to the GEMA (except in sections 166, 167C, 171 and 174E of that Act);
(c) references in Part 4 of the Enterprise Act 2002 to the CMA carrying out or exercising its functions under section 5 of that Act are to be read as including references to regulation 9.
(4) Section 130A of the Enterprise Act 2002 is to have effect in its application in relation to the GEMA by virtue of paragraphs (1) and (2) as if—
(a) for subsection (1) there were substituted—
(1) Where the Gas and Electricity Markets Authority—
(a) is proposing to carry out its functions under regulation 9 of the Heat Networks (Market Framework) (Great Britain) Regulations 2025 in relation to a matter for the purposes mentioned in subsection (2), and
(b) it considers the matter is one in respect of which it would be appropriate for the Authority to exercise powers under section174 (investigation) in connection with deciding whether to make a reference under section 131,
the Authority must publish a notice under this section (referred to in this Part as a “market study notice”).
; and
(b) in subsection (2)(a), for “the acquisition or supply of goods or services of one or more than one description in the United Kingdom” there were substituted “commercial activities connected with the supply of heating, cooling or hot water to heat network consumers (within the meaning of the Heat Networks (Market Framework) (Great Britain) Regulations 2025) by means of a relevant heat network (within the meaning of Part 8 of the Energy Act 2023)”.
(5) Paragraphs (6) and (7) apply where the GEMA—
(a) makes a market investigation reference under section 131 of the Enterprise Act 2002; and
(b) a CMA group (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013) is carrying out an investigation on that reference.
(6) The GEMA must give the CMA group—
(a) any information which is in its possession and relates to matters falling within the scope of the investigation and—
(i) is requested by the group for the purpose of assisting with the investigation; or
(ii) is information which in the GEMA’s opinion it would be appropriate to give to the group for the purpose of assisting with the investigation without any such request being made; and
(b) any other assistance with the investigation which the group may require and which is within the GEMA’s power to give.
(7) The CMA group must, in carrying out the investigation, take into account any information given to them for the purpose of assisting them with carrying out the investigation.
(8) Section 117 of the Enterprise Act 2002 (offences of supplying false or misleading information) as applied by section 180 of that Act has effect so far as relating to functions exercisable by the GEMA by virtue of paragraphs (1) and (2) as if the references in section 117(1)(a) and (2) to the CMA included references to the GEMA.
(9) To the extent that section 43(6A) of the Electricity Act 1989 ceases to have effect following the coming into force of paragraph 17(7) of Schedule 12 to the Digital Markets, Competition and Consumers Act 2024, paragraph (8) also ceases to have effect.
(10) In making any decision, or otherwise taking action, for the purpose of any of its functions that—
(a) by virtue of this regulation, are functions exercisable concurrently with the CMA; and
(b) in the case of functions under the Competition Act 1998, are functions within Schedule 4A to the Enterprise and Regulatory Reform Act 2013 by virtue of paragraph 5 of that Schedule,
the GEMA must have regard to the need for making a decision, or taking action, as soon as reasonably practicable.
(1) Before the CMA or the GEMA first exercises in relation to any matter functions within regulation 46(2)(b) (“Part 4 functions”) which are exercisable concurrently by virtue of regulation 46(1) and (2) (concurrent exercise of functions), it must consult the other.
(2) Neither the CMA nor the GEMA may exercise in relation to any matter Part 4 functions which are exercisable concurrently by virtue of regulation 46(1) and (2) (concurrent exercise of functions) if Part 4 functions which are so exercisable have been exercised in relation to that matter by the other.
(3) If any question arises as to whether a function in regulation 46(2) may be exercised by the GEMA in any particular case—
(a) that question must be referred to and determined by the Secretary of State; and
(b) no objection may be taken to anything done by or in relation to the GEMA under Part 4 of the Enterprise Act 2002 or Part 1 of the Competition Act 1998 (other than sections31D(1) to (6), 35C, 38(1) to (6), 40B(1) to (4) and 51) on the ground that it should have been done by or in relation to the CMA.
(1) Where it appears to the Regulator that an authorised person may be contravening, or may have contravened, any relevant condition or requirement, the Regulator may, for any purpose connected with any of its enforcement functions under Part 4 as are exercisable in relation to that matter, serve a notice under paragraph (2) on any person.
(2) A notice under this regulation is a notice signed by the Regulator and—
(a) requiring the person on whom it is served to produce, at a time and place specified in the notice, to the Regulator or to any person appointed by the Regulator for the purpose, any documents which are specified or described in the notice and are in that person’s custody or under that person’s control; or
(b) requiring that person, if that person is carrying on a business, to furnish, at a time and place and in the form and manner specified in the notice, to the Regulator such information as may be specified or described in the notice.
(3) Where a heat network authorisation has been or is to be revoked or has expired or is about to expire by effluxion of time, and it appears to the Regulator, having regard to its duties under regulations 7 and 8, to be requisite or expedient to do so for any purpose connected with the revocation or expiry, the Regulator may, with the consent of the Secretary of State, by notice in writing—
(a) require the authorised person to produce, at a time and place specified in the notice, to the Regulator, or to any person so specified, any records which are specified or described in the notice and are in the authorised person’s custody or under the authorised person’s control; or
(b) require the authorised person to furnish to the Regulator, or to any person specified in the notice, such information as may be specified or described in the notice, and specify the time, the manner and the form in which any such information is to be furnished.
(4) The requirement for the consent of the Secretary of State in paragraph (3) does not apply to the extent that the Regulator is the Secretary of State.
(5) A person must not be required under this regulation to produce any documents or records which the person could not be compelled to produce in civil proceedings in the court or, in complying with any requirement for the furnishing of information, to give any information which the person could not be compelled to give in evidence in any such proceedings.
(6) If a person makes default in complying with a notice under this regulation, the court may, on the application of the Regulator, make such order as the court thinks fit for requiring the default to be made good; and any such order may provide that all the costs or expenses of and incidental to the application must be borne by the person in default or by any officers of a company or other association who are responsible for its default.
The Regulator may authorise a person (“an authorised officer”) to exercise, on behalf of the Regulator and in accordance with the terms of the authorisation, the powers set out in Schedule 2.
(1) The Regulator may make regulations prescribing such standards of performance in connection with the regulated activities of authorised persons so far as affecting—
(a) heat network consumers supplied by the relevant heat networks to which the authorised persons’ heat network authorisations relate; or
(b) heat network consumers who would be supplied by those relevant heat networks,
as in the Regulator’s opinion ought to be achieved as regards those persons.
(2) Regulations under this regulation may—
(a) specify the circumstances in which authorised persons are to inform persons of rights conferred on them under the regulations;
(b) provide for exemptions from standards of performance;
(c) require the holders of heat network authorisations to provide information about their compliance with standards of performance,
and may make different provision for different descriptions of authorised persons.
(3) If an authorised person fails to meet a standard of performance, the authorised person must make to any person who is affected by the failure and is of a prescribed description such compensation as may be determined by or under the regulations.
(4) Compensation awarded under the regulations in respect of a failure to meet a standard of performance does not prejudice any other remedy which may be available in respect of the act or omission which constituted the failure.
(5) In this regulation “prescribed” means prescribed by regulations under this regulation.
(6) Regulations made under this regulation may not take effect before the launch date.
51 Standards of performance in individual cases: disputes
(1) Any dispute arising under regulation 50 or regulations made under that regulation may be referred to the Regulator—
(a) by either party; or
(b) with the consent of either party by Citizens Advice, Citizens Advice Scotland or Consumer Scotland or those bodies or any two of them acting jointly.
(2) Any such dispute is to be determined by order of the Regulator and the practice and procedure to be followed in connection with the determination of any such dispute is such as may be prescribed.
(3) An order under paragraph (2) is final and is enforceable—
(a) in England and Wales, as if it were a judgment ofthe county court; and
(b) in Scotland, as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.
(4) In this regulation “prescribed” means prescribed by regulations made by the Regulator.
(5) Regulations made under this regulation may not take effect before the launch date.
(1) The Regulator may from time to time—
(a) determine such standards of overall performance as, in the Regulator’s opinion, ought to be achieved by authorised persons in connection with their regulated activities;
(b) arrange for the publication, in such form and in such manner as the Regulator considers appropriate, of the standards so determined.
(2) Different standards may be determined for different descriptions of authorised persons.
(3) Authorised persons must conduct their regulated activities in such a way as can reasonably be expected to lead to compliance with the standards published under paragraph (1).
(4) Standards determined under this regulation may not take effect before the launch date.
53 Procedure for establishing standards of performance
(1) Before prescribing standards of performance in regulations under regulation 50, or determining standards of performance under regulation 52, the Regulator must—
(a) arrange for such research as the Regulator considers appropriate with a view to discovering the views of a representative sample of persons likely to be affected and consider the results;
(b) publish a notice of its proposals in accordance with paragraphs (3) and (4) and consider any representations which are duly made in respect of those proposals; and
(c) consult Citizens Advice, Consumer Scotland and other persons or bodies appearing to the Regulator to be representative of persons likely to be affected by the regulations or determination.
(2) In determining if and to what extent research must be arranged for the purposes of paragraph (1)(a), the Regulator may have regard to research made available to it by the Secretary of State.
(3) The notice required by paragraph (1)(b) is a notice—
(a) stating that the Regulator proposes to prescribe or determine standards of performance and setting out the standards of performance proposed;
(b) stating the reasons why it proposes to prescribe or determine those standards of performance; and
(c) specifying the time (not being less than 28 days beginning with the date of publication of the notice) within which representations with respect to the proposals may be made.
(4) A notice required by paragraph (1)(b) must be published in such manner as the Regulator considers appropriate for the purpose of bringing it to the attention of those likely to be affected by the proposals.
(5) The Regulator must make arrangements for securing that notices under paragraph (1)(b), regulations under regulation 50 and 51 and determinations under regulation 52 are made available to the public by whatever means it considers appropriate.
(6) The requirements of this regulation may be satisfied by action taken before these Regulations are made.
(7) Regulations under regulation 50 or 51—
(a) may only be made with the Secretary of State’s consent;
(b) must be made by statutory instrument.
54 Application of Part 1 of the Consumers, Estate Agents and Redress Act 2007 with modifications
(1) Part 1 of the Consumers, Estate Agents and Redress Act 2007 (the consumer advocacy bodies) applies in relation to heat network consumers as it applies in relation to designated consumers within section 4(1)(a) of that Act (designated consumers), subject to the following modifications.
(2) Section 13 (investigation of complaints relating to disconnection of gas or electricity) is to be taken to apply to a complaint made by a heat network consumer against an authorised person which relates to one of the following—
(a) the disconnection of, or threat to disconnect, the heat network consumer’s premises from a relevant heat network by the authorised person;
(b) following such a disconnection, a refusal by the authorised person to reconnect the premises;
(c) a failure in the facilities for payment for the supply of heating, cooling or hot water which results in a heat network consumer with a prepayment meter being unable to make a payment for the supply of heating, cooling or hot water;
(d) where a payment has been made for the supply of heating, cooling or hot water through a prepayment meter, a case where the supply is not given through the prepayment meter because of a defect in the meter or in the facilities for payment; or
(e) any other matter connected with the supply of heating, cooling or hot water to the heat network consumer or a refusal by the authorised person to supply heating, cooling or hot water to the heat network consumer.
(3) But a complaint is only within paragraph (2)(b) if it is made by a person who was a heat network consumer in relation to the relevant heat network in question at the time of the disconnection.
(4) Section 14 (reference of matters to the Gas and Electricity Markets Authority) is to be read as if—
(a) references to “the Authority” were to the Regulator;
(b) references to “enforcement functions” in relation to the Authority were to any of the Regulator’s functions under regulation 28 (orders for securing compliance), 31 (imposition of a penalty) or 37 (consumer redress orders) of these Regulations;
(c) the reference in subsection (4) to “the Gas Act 1986 (c. 44) or the Electricity Act 1989 (c. 29)” were to these Regulations.
(5) Section 19A (guidance for energy consumers) is to be read as if references to “energy consumers” included heat network consumers.
(6) Section 24 (provision of information to the consumer advocacy bodies) is to be read as if the Regulator were a person within subsection (3).
(7) Section 25 (enforcement by regulator of section 24 notice) is to be read as if—
(a) an authorised person were a “regulated provider” within subsection (3);
(b) the “relevant regulator” in relation to an authorised person were the Regulator.
(8) An obligation imposed on an authorised person by virtue of section 25(5) as applied by these Regulations is enforceable under Part 4 of these Regulations as a relevant requirement.
(9) Sections 27 (provision of information by a consumer advocacy body) and 29 (disclosure of information) are to be read as if the Regulator were an “authorised person” within section 27(3).
(10) Section 40B(1) (exemption from liability in damages) is to be read as if it applied to a function conferred by or under these Regulations.
55 Certain documents to be sent to Citizens Advice and Consumer Scotland
Where the Regulator is required by any provision of these Regulations to publish a notice or any other document, the Regulator must send a copy of the document to Citizens Advice and Consumer Scotland.
56 Application of Part 2 of the Consumers, Estate Agents and Redress Act 2007 with modifications
(1) Part 2 of the Consumers, Estate Agents and Redress Act 2007 applies in relation to heat network consumers subject to the following modifications.
(2) All authorised persons are to be considered regulated providers.
(3) Each person who is a heat network consumer in relation to a relevant heat network is to be considered a relevant consumer in relation to an authorised person who carries on a regulated activity in relation to that network.
(4) The GEMA is to be considered the relevant regulator in relation to all authorised persons.
(5) Section 43(1) is to be read as if for “must” there were substituted “may” but regulations made by the Regulator by virtue of this paragraph may not take effect before the launch date.
(6) The requirements of section 44(1) as applied by these Regulations may be satisfied by action taken before these Regulations are made.
(7) The Secretary of State is to be taken to have—
(a) made an order under section 47(1), coming into force on the same date as this paragraph, requiring all authorised persons to be members of a redress scheme within section 47(1)(b);
(b) specified in that order that the requirement applies only in relation to consumer complaints in connection with the supply of heating, cooling or hot water for domestic purposes or for the purposes of a small business or a micro-business;
(c) designated the Energy Ombudsman Scheme as an appropriate redress scheme in relation to all authorised persons; and
(d) retained the power to designate a replacement or alternative redress scheme for the purpose of section 47(1)(b).
(8) An obligation imposed on an authorised person by virtue of section 43, 46 or 47 as applied by these Regulations is enforceable under Part 4 of these Regulations as a relevant requirement.
(9) A person who is an authorised person by virtue of regulation 27 (deemed heat network authorisations) and is not a member of the Energy Ombudsman Scheme is bound by the Scheme Terms as if the person were a member from the date this paragraph comes into force.
(10) Paragraph (9) ceases to have effect—
(a) if the Secretary of State designates a replacement redress scheme under paragraph (7)(d); or
(b) in relation to a person who becomes a member of the Energy Ombudsman Scheme.
(11) In this regulation—
“the Energy Ombudsman Scheme” means the scheme under that name operated by Trust Alliance Group Limited (a company registered in England and Wales with company number 04351294);
“a member”, in relation to the Energy Ombudsman Scheme as constituted by the Scheme Terms, means a “Participating Company” within the meaning of the Scheme Terms;
“micro-business” means a business that—
consumes less than 247,000 kilowatt hours of heat per year; or
has fewer than 10 full-time equivalent employees and—
an annual turnover of £2 million or less; or
a balance sheet total of £2 million or less;
“the Scheme Terms” are the terms of the Energy Ombudsman Deed Poll read with the Terms of Reference: Energy Sector and the Membership Rules for Participating Companies as they have effect when these Regulations are made.
“small business” means a business other than a micro-business that—
consumes less than 420,000 kilowatt hours of heat per year; or
has fewer than 50 full-time equivalent employees and—
an annual turnover of £6.5 million or less; or
a balance sheet total of £5 million or less.
(12) For the purpose of this regulation, the number of full-time equivalent employees of a business must be calculated by taking the number of full-time employees and adding, for each employee who is not a full-time employee, such fraction as is reasonable.
57 Expenses relating to consumer advocacy and advice
(1) The Regulator may include in a general authorisation condition a provision requiring an authorised person to pay sums to the Regulator relating to the costs of the bodies listed in paragraph (2) in providing, or arranging for the provision of, consumer advocacy and advice in relation to heat network consumers.
(2) The bodies are—
(a) Citizens Advice;
(b) Citizens Advice Scotland;
(c) Consumer Scotland;
(d) a qualifying public consumer advice body.
(3) A “qualifying public consumer advice body” is a body that is supported by Citizens Advice or Consumer Scotland to enable the body to provide, or arrange for the provision of, consumer advocacy or advice in relation to heat network consumers free of charge.
58 Directions to the Regulator relating to expenses under regulation 57
(1) The Secretary of State may direct the Regulator to determine a general authorisation condition requiring an authorised person to pay sums to the Regulator relating to the costs mentioned in regulation 57 (expenses relating to consumer advocacy and advice).
(2) The Regulator must comply with a direction given under paragraph (1).
The Regulator must pay into the Consolidated Fund any sums received from fees paid to the Regulator under an authorisation condition imposed by virtue of regulation 20(1)(j) (scope of authorisation conditions).
In this Part—
“court” has the meaning given in section 171(1) of the Energy Act 2004;
“protected heat network company” means a company that holds a heat network authorisation other than any of the following—
a registered provider of social housing;
a body registered as a social landlord under Part 1 of the Housing Act 1996 (social rented sector regulated by Welsh Ministers);
a body registered in the register maintained under section 20(1) of the Housing (Scotland) Act 2010.
(1) The court may make a heat network administration order in relation to a protected heat network company.
(2) A “heat network administration order” is an order directing that, while the order is in force, the affairs, business and property of the company are to be managed by a person appointed by the court.
(3) The person appointed by the court is the “heat network administrator” of the company.
(4) The heat network administrator of a protected heat network company must manage the company’s affairs, business and property, and exercise all other functions that the person has as heat network administrator, so as to achieve the objectives set out in regulation 59C so far as possible.
(5) Where a non-GB company is subject to a heat network administration order—
(a) the effect of the order is limited to the company’s affairs and business so far as carried on in Great Britain and to its property in Great Britain only;
(b) references in this regulation to the affairs, business and property of the company must be construed accordingly.
59C Objectives of heat network administration order
(1) The objectives of a heat network administration order are to secure the following—
(a) that the supply of heating, cooling or hot water is continued at the lowest cost that it is reasonably practicable to incur;
(b) insofar as consistent with sub-paragraph (a), that the company’s relevant heat network is, and continues to be maintained and developed as, an efficient and economical system; and
(c) that it becomes unnecessary, by using one or more of the means referred to in paragraph (2), for the order to remain in force for those purposes.
(2) The means are—
(a) the rescue as a going concern of the company subject to the heat network administration order;
(b) transfers falling within paragraph (3);
(c) the heat network administrator making arrangements for securing that heat network consumers supplied with heating, cooling or hot water by the company’s relevant heat network have an alternative supply of heating or, as the case may be, cooling or hot water.
(3) A transfer falls within this paragraph if it is a transfer as a going concern of so much of the undertaking of the company subject to the heat network administration order as is associated with the company’s relevant heat network—
(a) to another company; or
(b) as respects different parts of that undertaking, to two or more different companies,
as it is appropriate to transfer for the purposes of achieving the objectives of the order.
(4) The means by which a transfer falling within paragraph (3) may be effected include—
(a) a transfer to a wholly-owned subsidiary of the company;
(b) a transfer to another company of securities of a wholly-owned subsidiary to which there has been a transfer falling within sub-paragraph (a).
(5) The objectives of a heat network administration order may be achieved by a transfer falling within paragraph (3) only to the extent that—
(a) the rescue as a going concern of the company subject to the order is not reasonably practicable or is not reasonably practicable without such a transfer;
(b) the rescue of the company as a going concern will not achieve the objectives or will not do so without such a transfer;
(c) such a transfer would produce a result for the company’s creditors as a whole that is better than the result that would be produced without it; or
(d) such a transfer would, without prejudicing the interests of the company’s creditors as a whole, produce a result for that company’s members as a whole that is better than the result that would be produced without it.
(6) In this regulation, a reference to the relevant heat network of a company subject to a heat network administration order is a reference to—
(a) the relevant heat network specified in the company’s heat network authorisation; or
(b) where regulation 27 applies, the relevant heat network to which the company’s heat network authorisation relates.
59D Heat network administration orders: application of certain provisions of Energy Act 2004
(1) Sections 156 to 167 of, and Schedules 20 and 21 to, the Energy Act 2004 (special administration regime for energy licensees) apply in relation to a heat network administration order as they apply in relation to an energy administration order (as defined in section 154(1) of that Act), with the modifications set out in paragraphs (2) to (5).
(2) Those provisions must be read as if—
(a) for “energy administration” in each place there were substituted “heat network administration”;
(b) for “energy administrator” in each place there were substituted “heat network administrator”;
(c) for “protected energy company” in each place there were substituted “protected heat network company”.
(3) Section 159 must be read as if in subsection (3) for “or section 44 of the Energy Act 2023” there were substituted “, section 44 of the Energy Act 2023 or regulation 59D of the 2025 Regulations”.
(4) Schedule 20 must be read as if—
(a) in paragraph 12—
(i) in the opening words for “the existing text is to be sub-paragraph (1) and after that sub-paragraph” there were substituted “after sub-paragraph (2)”;
(ii) for the inserted text there were substituted—
(3) The heat network administrator of a company has the power to act on behalf of the company for the purposes of any enactment or subordinate legislation which confers a power on the company, or imposes a duty on it.
(4) In sub-paragraph (3), “enactment” has the same meaning as in the Energy Act 2004.
;
(b) in paragraph 25 for “sub-paragraphs (2)(b) and (3)” there were substituted “sub-paragraphs (2)(b) and (ba), (3) and (3A)”;
(c) in paragraph 32(1)—
(i) in paragraph (a) ““correspondence”,” were omitted;
(ii) for paragraphs (c) and (d) there were substituted—
(c) after the definition of “appropriate value” (as inserted by paragraph (b)) insert—
““company”, “court” and “heat network administration order” have the same meanings as in Chapter 3 of Part 3 of the Energy Act 2004, as applied by regulation 59D of the Heat Networks (Market Framework) (Great Britain) Regulations 2025 (the “2025 Regulations”);”;
after the definition of “floating charge” insert—
““GEMA” means the Gas and Electricity Markets Authority;
“heat network administration application” means an application to the court for a heat network administration order under Chapter 3 of Part 3 of the Energy Act 2004, as applied by regulation 59D of the 2025 Regulations;”;
;
(iii) in paragraph (e)—
(aa) in the inserted definition of “objective” for “section 155 of the Energy Act 2004” there were substituted “regulation 59C of the 2025 Regulations”;
(bb) in the inserted definition of “prescribed” after “Energy Act 2004” there were inserted “, as applied by regulation 59D of the 2025 Regulations”;
(d) after paragraph 32(1) there were inserted—
(1A) Omit sub-paragraphs (1A) and (1B) of that paragraph.
;
(e) in paragraph 36(1) for “section 154(4) of this Act” there were substituted “regulation 59B(5) of the 2025 Regulations”;
(f) in paragraph 43 in the inserted text after “the Energy Act 2004” there were inserted “and regulation 59D of the Heat Networks (Market Framework) (Great Britain) Regulations 2025”;
(g) in paragraph 44(5) in the inserted text after “the Energy Act 2004” there were inserted “and regulation 59D of the Heat Networks (Market Framework) (Great Britain) Regulations 2025”;
(h) in paragraph 45 after “section 157(1)(e) of this Act” there were inserted “, as applied by regulation 59D of the 2025 Regulations”;
(i) in paragraph 46(1)—
(i) for paragraph (b) there were substituted—
(b) any other provision that relates to insolvency, or makes provision by reference to anything that is or may be done under the Insolvency Act 1986, and is—
(i) contained in an Act passed before the Energy Act 2023 or in the same Session; or
(ii) made under an Act before the order comes into force,
;
(ii) in the words following paragraph (b) for “section 96 of the Energy Act 2011” there were substituted “regulation 59D of the 2025 Regulations”;
(j) in paragraph 47 in the definitions of “enters energy administration” and “in energy administration” after “Part 1 of this Schedule” there were inserted “and regulation 59D of the 2025 Regulations”.
(5) Schedule 21 must be read as if—
(a) for “energy transfer scheme” in each place there were substituted “heat network transfer scheme”;
(b) for “old energy company” in each place there were substituted “old heat network company”;
(c) for “new energy company” in each place there were substituted “new heat network company”;
(d) in paragraph 1(b) for “section 155(3)” there were substituted “regulation 59C(3) of the 2025 Regulations”;
(e) in paragraph 5 for “relevant licence” or “licence” in each place there were substituted “heat network authorisation”;
(f) in paragraph 12—
(i) for “subsection (3) of section 155” there were substituted “paragraph (3) of regulation 59C of the 2025 Regulations”;
(ii) for “subsection (4)(a) of that section” there were substituted “paragraph (4)(a) of that regulation”.
(6) Sections 171 and 196 of the Energy Act 2004 (interpretation) apply for the purposes of the application by paragraph (1) of the provisions of the Energy Act 2004 referred to in that paragraph, with the modifications set out in paragraph (7).
(7) Section 171(1) must be read as if—
(a) the following definitions were omitted—
(i) “energy administration order”;
(ii) “energy administration rules”;
(iii) “energy administrator”;
(iv) “objective of the energy administration”;
(v) “protected energy company”;
(vi) “relevant licence”;
(b) the following definitions were inserted at the appropriate places—
(i) ““2025 Regulations” means the Heat Networks (Market Framework) (Great Britain) Regulations 2025;”;
(ii) ““heat network administration” means the administration of a protected heat network company in accordance with a heat network administration order;”;
(iii) ““heat network administration order” has the meaning given in regulation 59B of the 2025 Regulations;”;
(iv) ““heat network administration rules” means rules made under section 411 of the 1986 Act by virtue of section 159(3) of this Act, for the purpose of giving effect to this Chapter as applied by regulation 59D of the 2025 Regulations;”;
(v) ““heat network administrator” has the meaning given in regulation 59B of the 2025 Regulations;”;
(vi) ““heat network authorisation” means a heat network authorisation under the 2025 Regulations;”;
(vii) ““objective of the heat network administration” is to be construed in accordance with regulation 59C of the 2025 Regulations;”;
(viii) ““protected heat network company” has the meaning given in regulation 59A of the 2025 Regulations;”.
60 Carrying on a regulated activity without authorisation
A person who contravenes regulation 14 (prohibition on carrying on a regulated activity without authorisation) commits an offence and is liable—
(a) on summary conviction in England and Wales, to a fine;
(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;
(c) on conviction on indictment, to a fine.
61 Failure to provide information in response to a notice
(1) A person who without reasonable excuse fails to do anything required by a notice under regulation 10 (collecting information) or 48 (powers to require information, etc.) commits an offence and is liable on summary conviction—
(a) in England and Wales, to a fine;
(b) in Scotland, to a fine not exceeding level 5 on the standard scale.
(2) A person who intentionally alters, suppresses or destroys any document or record which the person has been required by any notice under regulation 10 or 48 to produce commits an offence and is liable—
(a) on summary conviction in England and Wales, to a fine;
(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;
(c) on conviction on indictment, to a fine.
(1) It is an offence for a person to give any information or make any application under or for the purposes of any provision of these Regulations which includes any statement—
(a) that the person knows to be false or misleading in a material particular; or
(b) that is false or misleading in a material particular, the person being reckless as to whether it is.
(2) A person guilty of an offence under paragraph (1) is liable—
(a) on summary conviction in England and Wales, to a fine;
(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;
(c) on conviction on indictment, to a fine.
(1) It is an offence for a person intentionally to obstruct an authorised officer in the exercise of a power conferred by regulation 49 (inspections).
(2) A person guilty of an offence under paragraph (1) is liable—
(a) on summary conviction in England and Wales, to a fine;
(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;
(c) on conviction on indictment, to a fine.
(1) It is an offence for a person who is not an authorised officer to purport to be entitled to enter any premises in exercise of a power conferred by regulation 49 (inspections).
(2) For the purposes of paragraph (1) it is immaterial, where a person purports to be entitled to enter any premises, that the power which that person purports to be entitled to exercise does not exist or would not be exercisable even if that person had been authorised pursuant to regulation 49.
(3) A person guilty of an offence under paragraph (1) is liable—
(a) on summary conviction in England and Wales, to a fine;
(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;
(c) on conviction on indictment, to a fine.
(1) Where an offence under this Part is committed by a body corporate and—
(a) it is committed with the consent or connivance of an officer; or
(b) it is attributable to any neglect on the officer’s part,
the officer as well as the body corporate is guilty of the offence and is liable to be proceeded against and punished accordingly.
(2) An “officer”, in relation to a body corporate, means a director, manager, secretary or other similar officer of the body, or a person purporting to act in any such capacity.
(3) If the affairs of a body corporate are managed by its members, paragraph (1) applies in relation to the acts or defaults of a member in connection with that member’s functions of management as if the member were a director of the body corporate.
(1) Where an offence under this Part is committed by a Scottish partnership and—
(a) it is committed with the consent or connivance of a partner; or
(b) it is attributable to any neglect on the partner’s part,
the partner as well as the partnership is guilty of the offence and is liable to be proceeded against and punished accordingly.
(2) In paragraph (1) “partner” includes a person purporting to act as a partner.
68 Part 1 of the Heat Networks (Scotland) Act 2021 amended
(1) The Heat Networks (Scotland) Act 2021 is amended as follows.
(2) After section 12 insert—
Enforcement
Enforcement provisions under Part 8 of the Energy Act 2023 applied
12A (1) The conditions of a heat networks licence may be enforced as if—
(a) they were conditions of a heat network authorisation, as defined in paragraph 13 of Schedule 18 to the Energy Act 2023, conferred on the person holding the heat networks licence; and
(b) the licensing authority were the Regulator as defined in section 217 of that Act.
(2) However, any offences created under Part 8 of the Energy Act 2023 have effect for the purpose of subsection (1) as if they were each triable only summarily and punishable on conviction with imprisonment for a period not exceeding 3 months or a fine not exceeding level 1 on the standard scale (or both).
.
(3) After section 16 insert—
Monitoring and review
16A (1) The licensing authority must keep under review the supply of thermal energy by means of heat networks in Scotland.
(2) The licensing authority must, so far as it appears to it to be practicable from time to time to do so, monitor the carrying on of the activity mentioned in subsection (1), and the persons by whom it is carried on, with a view to facilitating the exercise of its function of enforcing the conditions of heat network licences.
Collecting information
16B (1) To enable the licensing authority to comply with the duty in section 16A(2), the licensing authority may, by notice given to a person supplying thermal energy by means of a heat network, require that person to provide in the form and manner specified in the notice—
(a) documents specified or described in the notice that are in that person’s custody or under that person’s control; and
(b) information specified or described in the notice that relates to matters the licensing authority is under a duty to monitor.
(2) The notice must specify the time and place at which the person must give the documents or information to the licensing authority.
(3) The requirements of this section may be enforced as if—
(a) they were relevant requirements as defined in paragraph 37(6) of Schedule 18 to the Energy Act 2023;
(b) the person to whom the notice under subsection (1) is given were a person holding a heat network authorisation within paragraph 13 of Schedule 18 to that Act;
(c) the licensing authority were the Regulator as defined in section 217 of that Act; and
(d) the modifications in relation to offences in section 12A(2) of this Act also applied for the purpose of this subsection.
Records
16C (1) The licensing authority must maintain records of information obtained under or by virtue of this Act relating to—
(a) persons whose application for a heat networks licence has been refused;
(b) persons whose heat networks licence has been revoked.
(2) The licensing authority is not required to maintain any records referred to in subsection (1) for longer than it considers appropriate having regard to the nature of the records and the purposes for which they may lawfully be used or disclosed by the licensing authority.
(3) This section does not affect the operation of the Public Records Act 1958 or the data protection legislation (within the meaning of the Data Protection Act2018).
.
(1) The Secretary of State must from time to time—
(a) carry out a review of the regulatory provision contained in these Regulations; and
(b) publish a report setting out the conclusions of the review.
(2) Section 30(4) of the Small Business, Enterprise and Employment Act 2015 requires that a report published under this regulation must, in particular—
(a) set out the objectives intended to be achieved by the regulatory provision contained in these Regulations;
(b) assess the extent to which those objectives are achieved;
(c) assess whether those objectives remain appropriate; and
(d) if those objectives remain appropriate, assess the extent to which they could be achieved in another way which involves less onerous regulatory provision.
(3) The first report must be published before the end of the period of five years beginning with the day on which regulation 1 comes into force.
(4) Subsequent reports must be published at intervals not exceeding five years.
(5) In this regulation, “regulatory provision” has the same meaning as in sections 28 to 32 of the Small Business, Enterprise and Employment Act 2015 (see section 32 of that Act).
SCHEDULE 1 Service of notices, etc. by the Regulator
Regulation 3
1 Any notice or other document required or authorised to be given, sent or served by the Regulator under these Regulations may be given, sent or served—
(a) by delivering it to the person to whom it is to be given or sent or on whom it is to be served (“the recipient”);
(b) by leaving it at the usual or last known place of abode of the recipient;
(c) by sending it in a prepaid letter addressed to the recipient at the recipient’s usual or last known place of abode;
(d) in the case of a body corporate, by delivering it to the secretary or clerk of the body (“the responsible person”) at their registered or principal office, or sending it in a prepaid letter addressed to the responsible person, or leaving it for the attention of the responsible person, at that office;
(e) in the case of a partnership, by delivering it to a partner or a person having the control or management of the partnership business (“the responsible manager”) at the principal office of the partnership, or sending it in a prepaid letter addressed to the responsible manager, or leaving it for the attention of the responsible manager, at that office;
(f) by leaving it at or sending it in a prepaid letter to an address within the United Kingdom provided by the recipient for the purpose of the service of documents of the same description as that document;
(g) by sending it by electronic means to a number or address provided by the recipient for the purpose of the service of documents of the same description as that document.
2 For the purposes of this Schedule, the principal office of a body corporate registered outside the United Kingdom or of a partnership carrying on business outside the United Kingdom is its principal office within the United Kingdom.
3 A notice or other document which is given or served in accordance with paragraph 1(g) is to be treated as having been given or served on the next working day after the day on which it is sent.
4 This Schedule does not apply to any document in relation to the service of which provision is made by rules of court.
5 In this Schedule—
“secretary”, in relation to a local authority within the meaning of the Local Government Act 1972or the Local Government (Scotland) Act 1973, means the proper officer within the meaning of that Act;
“working day” means any day other than—
Saturday or Sunday;
Christmas Day or Good Friday;
a day which is a bank holiday in England and Wales or Scotland under the Banking and Financial Dealings Act 1971.
Regulation 49
1 An authorised officer may conduct an inspection.
2 An authorised person in relation to which an inspection is conducted must—
(a) pay the reasonable costs of the inspectionif so required by the Regulator;
(b) co-operate with theauthorised officer;
(c) provide the authorised officer with access to their premisesin accordance with paragraph 3(a);
(d) allow the authorised officer to examine, print, copy or remove any document or information, and examine or remove any material or equipment, in accordance with paragraph 3(d) or (e);
(e) allow the authorised officer access to any person from whom the authorised officer seeks relevant information for the purposes of the inspection;
(f) comply with any request made by, or requirement of, an authorised officer performing their functions under this Schedule.
3 The authorised officer may—
(a) at any reasonable time enter the premises of an authorised person (except any premises used wholly or mainly as a private dwelling) if the authorised officer has reasonable grounds to believe that entry to those premises may be necessary or helpful for the purpose of the inspection;
(b) require an authorised person to leave undisturbed and not to dispose of, render inaccessible or alter in any way any material, document, information, in whatever form and wherever it is held (including where it is held remotely), or equipment which is, or which the authorised officer considers to be, relevant for such period as is, or as the authorised officer considers to be, necessary for the purposes of the inspection;
(c) require an authorised person to produce and provide the authorised officer with access, for the purposes of the inspection, to any such material, document, information or equipment which is, or which the authorised officer considers to be, relevant to the inspection, either immediately or within such period as the authorised officer may specify;
(d) examine, print or copy any document or information, and examine any material or equipment, which is, or which the authorised officer considers to be, relevant;
(e) remove any document, information, material or equipment (including for the purposes of printing or copying any document or information) for such period as is, or as the authorised officer considers to be, necessary for the purposes of the inspection;
(f) conduct, or direct the authorised person to conduct, tests on any equipment;
(g) take any other action that the authorised officer considers appropriate and reasonably required for the purposes of the inspection.
4 The authorised officer must—
(a) produce proof of the authorised officer’s identity if requested by any person present at the premises; and
(b) take appropriate and proportionate measures to ensure that any material, document, information or equipment removed in accordance with paragraph 3(e) is kept secure from unauthorised access, interference and physical damage.
5 Where under paragraph 3(e) an authorised officer removes any document, material or equipment, the authorised officer must provide, to the extent practicable, a notice giving—
(a) sufficient particulars of that document, material or equipment for it to be identifiable; and
(b) details of any procedures in relation to the handling or return of the document, material or equipment.
6 In this Schedule, “inspection” means any activity carried out (including any steps mentioned in paragraph 3) for the purpose of—
(a) verifying compliance with the requirements of these Regulations or any other relevant requirement or any relevant condition; or
(b) assessing or gathering evidence of potential or alleged failures to comply with the requirements of these Regulations or any other relevant requirement or any relevant condition,
including any necessary follow-up activity for either purpose.