What does the Energy Act 2023 mean for Build to Rent?

Stuart Wilcox, Head of Critical Infrastructure at FirstPort, explains: “The Energy Act 2023 is a game-changer for energy management. It sets a new standard for performance, fairness, efficiency and transparency for customers, while driving towards the UK sustainability goals. 

“The Act provides an opportunity to set standards and ensure owners and operators are accountable for the delivery and efficiency of communal heat networks in a way never seen before. For property managers, this also means rethinking how we operate, monitor and communicate about the energy centres, and networks we manage.”

What is the Energy Act 2023?

The Energy Act 2023, now in force across England, Scotland and Wales, is designed to make energy centres more efficient, transparent and aligned with the UK’s net zero targets.

An energy centre generates and distributes heating, hot water and sometimes cooling from a central point, supplying multiple homes via a network of insulated pipes. The fuel sources can vary from gas, electricity, even biomass.

Under this legislation, Ofgem has been appointed as the official regulator for communal heat networks from January 2026. By the end of this year, those that own and operate energy centres, such as building freeholders and Build to Rent operators, must register each energy centre with Ofgem. From January 2026, these will fall under the Heat Network Technical Assurance Scheme (HNTAS), which will set clear expectations around data capture, performance monitoring and compliance. Initially designed for new builds from feasibility to operation, the HNTAS will be expanding its technical standards across existing networks, and these requirements will be published this winter.

The Act also introduces consumer protections in this area for the first time, with a requirement on the network provider to understand vulnerable customers living in the building and provide support and options for customers facing financial difficulties. It also enables customers to raise cases with the Energy Ombudsman when they have a complaint.

“Managing energy centres efficiently has always been important for ensuring cost control and customer satisfaction,” Stuart explains. “But now, with the Energy Act in place, it’s also a regulatory obligation for building owners. That’s a big shift for our industry.

“At FirstPort, we have over 100 energy centres within our portfolio that will fall under HNTAS. We are coordinating with our clients to ensure these are registered both with the Energy Ombudsman and Ofgem as we prepare all our heat and cooling networks for reporting under the regulator.”

The challenges and opportunities for Build to Rent

“Historically, many poorly performing energy centres can be the result of outdated designs or limited ability to measure the system’s performance,” explains Stuart. 

He adds: “Within the operational phase, engineers often focus on the asset in front of them, rather than understanding how each part affects the overall system performance, so over time the system performance can decline.

“This is the first time we’ve seen real accountability built into legislation at this scale. It gives us the tools to improve what hasn’t been working and futureproof what already is.”

The Act also unlocks potential for system upgrades. “Where systems are poorly performing, we will have the data and ability to swap out legacy equipment for high-efficiency, low-carbon technology,” explains Stuart.

A property management company’s role

Although the Act puts the onus on the building owner, in both BTR and traditional leasehold property management, the managing agent or building operator must be able to demonstrate its ability to effectively manage the energy centres on their behalf.

At FirstPort, managing energy is not just about keeping systems running, it’s about delivering a dependable service that residents can trust. That starts with fully understanding the process from fuel procurement, energy centre management, metering and billing, and lifecycle planning.

“Our teams need to know what fuel is being used, how much it costs, how efficiently it’s being burned, and how the heat or cool air is distributed,” says Stuart. “That’s how we ensure systems are performing as they should, in addition to a clear and concise financial management process that provides transparency in the management of these complex heating systems.”

A new era of compliance and accountability

Once an energy centre is registered with Ofgem and brought under the HNTAS, property managers, BtR operators and building owners will need to work towards a compliance timeline, making sure their clients meet the necessary obligations set out in the Act. In some cases, this may involve upgrading equipment or metering systems to meet new standards and build upon existing heat network metering and billing regulations.

Stuart adds: “This legislation isn’t just about reporting, it’s about investing in better infrastructure, improving performance, reliability, cost effectiveness and consumer protections. We’re preparing now to make sure we meet those requirements and continue delivering reliable services to our customers.”

What’s next?

The Energy Act marks a critical step forward for consumers. For companies like FirstPort, it is investing, informing, and adapting so that customers continue to receive the essential services they rely on.

Stuart Wilcox, Head of Critical Infrastructure at FirstPort