Heat network reforms put engineers in the spotlight

This represents a defining moment for heat network engineering teams. The sector is no longer governed by guidance and best practice. Instead, compliance is statutory, with engineers and technicians soon facing strict, legally binding obligations. 

The consequences of failure are serious; Ofgem is likely to levy fines as well as mandate consumer compensation where standards are not met. Clear internal governance and accountability structures will be critical.

Driving growth

The overall aim of the new regulations is to improve the efficiency and reliability of heat network installations and strengthen consumer protection. This is necessary to reach net zero targets, which anticipate 20% of the country’s heat coming from heat networks by 2050, up from 2% in 2023. 

Growth on this scale means engineers with the necessary competences to fulfil the new requirements will find themselves in very high demand over the coming decade as the industry experiences an intensifying skills shortage. 

Mandatory technical assurance

Under the new framework, organisations classed as “heat network operators” (responsible for maintaining physical infrastructure) or “heat suppliers” (responsible for customer contracts and billing) have a year to complete their Ofgem registration. This could include developers and construction companies managing new-build sites through their warranty periods. It’s essential that engineers understand which category their organisation falls under, as each carries distinct requirements. 

One particularly significant development is the introduction of the Heat Network Technical Assurance Scheme (HNTAS), led by the Department for Net Zero and Energy Security (DESNZ), expected to launch next year. This will embed formal technical requirements across design, construction and operation, building on the existing Chartered Institution of Building Services Engineers (CIBSE) CP1 Heat Networks Code of Practice.

New schemes will need to demonstrate high levels of efficiency, appropriate temperature regimes, effective hydraulic design and robust control strategies. As efficiency is central to the regulations, they also promote the use of low-carbon heat sources such as heat pumps and waste heat where appropriate. Future-proofing will no longer be optional; it will be embedded in compliance.

Operational performance and asset condition also fall within the scope of technical assurance. In a decisive move away from reactive maintenance, proactive equipment management strategies are needed to ensure demonstrable efficiency and resilience. Involving operational teams responsible for ongoing administration and oversight of a network as early as possible during the design and build stages can help to ensure systems are fully compliant and fit for purpose.

Data and accountability

Ofgem and DESNZ play complementary roles in the new regime: Ofgem regulates the market, covering authorisation, consumer protection and reporting requirements, while DESNZ introduces explicit obligations for systematic data collection and reporting, set in HNTAS, under the Heat Network (Market Framework) (Great Britain) Regulations 2025. Continuous performance tracking and structured improvement plans will soon become central to day-to-day operations. 

Compliance with HNTAS will depend not only on implementing data monitoring points, but also on meeting key performance indicators. This will influence decisions at every stage, from energy centre specification to controls architecture. Performance metrics, such as temperatures, flow rates, energy efficiency and downtime, need to be rigorously tracked, and robust data management systems are essential to ensure outputs are reliable and auditable. 

Service standards

Under Ofgem, comprehensive consumer protections will, for the first time, ensure heat network consumers receive safeguards aligned with the rest of the residential energy sector. In the future, supply interruptions, delayed repairs or failures in communication could all result in penalties and compensation payments. Engineers will play a direct role in helping to guarantee expected service standards. 

Accurate metering for each household will also be paramount as transparent and fair billing depends on reliable measurement systems. This must be baked into system design, necessitating a detailed understanding of different metering protocols. Equipment must be correctly specified, installed, commissioned, and maintained, and data integrity preserved. 

Upskilling for a regulated future

Taken together, these reforms reframe the engineer’s role within heat networks. Technical competence remains essential but must now be combined with knowledge of data systems on the one hand, and an understanding of the new regulatory regime, reporting duties and consumer standards on the other. 

At Insite Energy, this changing landscape has informed the launch of our first apprenticeship scheme aimed at fast-tracking talented engineers to build confidence and competence in all of these areas. Similar training and accreditation programmes are being rolled out across the industry. Recognised industries, like the Building Engineering Services Association (BESA), offer courses to help professionals adapt to the new regime, and DESNZ has also published a series of upskilling videos. Mentoring schemes, such as the Heat Exchanger Mentoring Programme (HEMP), can also play a role here. Many more such initiatives are needed, however, if we’re to meet the sector’s burgeoning need for reform-ready engineering expertise.

Alan Rocker, Field Operations Manager at Insite Energy