Over the past decade, Heat Networks have grown into a critical part of the UK’s decarbonisation plans. Until recently, however, the sector has operated with limited regulatory oversight compared to gas and electricity suppliers.

This is about to change.

From January 2026 onward, Heat Network operators will fall under a new framework regulated by Ofgem. The Heat Network Authorisation Conditions has been under consultation till 2 December and currently awaiting decision – outline substantial new obligations around billing accuracy, consumer rights, transparency of information and operational standards.

For the industry, this represents a major shift. For operators, it represents both risk and opportunity.

In this article, I summarise the key regulatory areas every Heat Network operator should prepare for now, and how digitalisation plays a central role in achieving compliance efficiently.

Billing Accuracy Based on Actual Consumption

The new rules make it clear: Consumers must receive accurate bills based on actual meter readings, not estimates (except when readings are genuinely unavailable).

This includes:

• Ability to capture and store meter data reliably

• Billing calculations based strictly on actual consumption

• Annual (or per service charge period) bills based on real readings

• Clear explanation of how every bill was calculated

Operators will need systems that automate meter data collection and minimise manual intervention.

Transparency of Prices, Tariffs & Calculations

Condition 13 of the draft regulations establishes strict requirements for price transparency:

• Clearly itemised standing and variable charges

• Consumption data in a format consumers can understand

• Comparison of usage with previous periods (including graphs)

• Estimates of future charges

• Transparent tariff explanations

• Prompt provision of billing information upon request

This level of visibility is standard in the electricity and gas sectors – and now heat networks are expected to match it.

Consumer Rights, Communication & Complaint Handling

Operators must ensure consumers know:

• How to contact the supplier and emergency services

• How to access impartial advice bodies

• How billing dates work and how changes are communicated

• What to do in case of disputes

• What support is available for vulnerable consumers

For many legacy systems, this requires significant process adjustment.

Prepayment Meter Obligations

Prepayment consumers must be provided with:

• Annual statements

• Consumption details for the previous period

• Projected charges for the next period

• Clear information about emergency and support credit

This aligns heat networks with standards already expected in electricity/gas prepayment schemes.

Digitalisation Will Become a Compliance Requirement – Not a “Nice to Have”

Meeting the upcoming regulatory obligations manually will be extremely difficult. Ofgem expects:

• Accurate meter data

• Timely billing

• Transparent communication

• Detailed reporting

• Consistent customer experiences

All of this requires robust IT systems, not spreadsheets and ad-hoc processes.

Where SkyBill Fits In

SkyBill is designed specifically for the end-to-end meter-to-cash process for Heat Network operators, and we have been aligning our platform with the upcoming regulatory requirements.

SkyBill supports:

• Accurate billing based on actual meter data

• Full price & tariff transparency, including fixed/variable charge breakdowns

• Consumption comparisons and graphs

• Customer self-service portal for billing, payments and communication

• Prepayment support

• Digital delivery of bills & billing information

• Audit trails and reporting aligned with Ofgem expectations

Our goal is simple: To help Heat Network operators become fully compliant while improving operational efficiency and customer experience.

What Should Operators Do Now?

1. Review your current billing process

2. Assess whether you can meet the new transparency and communication standards

3. Evaluate whether your systems can support accurate, audit-ready billing

4. Start planning digitalisation steps now — not in 2025

Regulation is tightening — but operators who modernise early will not only avoid risk, they will deliver a far better service to consumers.

Read more:

Energy Network Billing Software & Compliance Platform | SkyBill

Heat networks regulation is coming | Ofgem