What happens if a heat network isn't registered by 26 January 2027?

Operating a heat network without authorisation is a criminal offence, and directors can be personally liable. Separately, Ofgem can fine for breaking its rules.

The offence

Existing networks were authorised automatically from the start of regulation, on condition that they register by 26 January 2027. Operating or supplying a heat network without authorisation is a criminal offence, and directors or senior managers can be personally liable where they consented to it.

Ofgem's fines

For breaking the authorisation conditions, Ofgem can impose penalties and order compensation to residents, capped at the higher of £1 million or 10% of turnover. Its stated aim is that breaking the rules should cost more than following them.

Why starting late beats not starting

Ofgem says it will take a pragmatic approach and gives significant weight to organisations that come forward and report problems themselves. Its penalty policy allows a 30% discount on the penalty element for cases settled early, and it can take account of the limited budgets of not-for-profit bodies.