How to choose a heat network metering and billing agent

Many landlords and heat network operators don't read meters or produce bills themselves. They pay a metering and billing agent to do it. Done well, that takes a lot of work off your hands. Done badly, it can leave residents with estimated bills, unanswered calls and complaints that land on your desk, and on the regulator's. This guide explains what to look for.

What a billing agent does, and what stays with you

A typical agent will do some or all of the following: supply and fit meters, read them remotely or on site, turn readings into bills, collect payments, run pay-as-you-go top-ups, chase debt and answer residents' questions. Some also help with regulatory paperwork and data reporting.

What an agent can't do is take on your legal responsibilities. The metering rules apply to heat suppliers: anyone who supplies and charges for heating, cooling or hot water through communal heating or a heat network[source], and Ofgem's conditions apply to the authorised operator and supplier. The agent works for you. If a bill is wrong, the customer's complaint, and the regulator's interest, is with you.

That doesn't make outsourcing a bad idea. It means you should choose an agent the way you'd choose anyone who acts in your name with your customers.

Start with what the rules require

Since 27 January 2026[source], every bill your agent sends has had to meet Ofgem's conditions. A good agent should be able to explain how it meets each of these.

Billing information must go out at least twice a year, or at least quarterly for customers who get electronic bills or ask for it[source], and it must include information about the Energy Ombudsman and how to contact it, among other details[source].

The agent doesn't usually set your prices, but it often calculates them and it certainly applies them. Make sure you understand how each charge on a bill is worked out, because you need to be able to defend it. For the full picture, read our guide to heat network metering and billing rules.

There's also a deadline that affects the choice: existing networks must register with Ofgem by 26 January 2027[source]. Registration asks for customer, metering and billing details for each network, so an agent that holds good data can save you time. See our guide to registering a heat network with Ofgem.

Questions to ask every agent

Send each agent the same questions in writing.

Readings. What share of the bills you send for clients like us use actual readings rather than estimates? How do you read meters, and what happens when a meter stops communicating?

Meters. Who is responsible for meter maintenance and for checking meters for errors? The rules say installed meters must measure accurately, keep working and be maintained and checked for errors[source], so ask how the agent tracks this and how it reports faulty meters to you.

Customer service. What hours is the resident helpline open? How are calls and complaints recorded, and will you see that log? How long does a typical complaint take to close?

Vulnerable customers. How do you identify residents who need extra help, and what do you do differently for them? How do you handle residents in payment difficulty?

Pay as you go. If you offer prepayment, how do residents top up, what happens if they can't, and how are emergency credit and self-disconnection handled?

Data and reporting. What reports will we get, how often, and in what format? Can you supply the information Ofgem asks for at registration and for regular data reporting?

Experience. Which clients do you work for with buildings like ours? Can we speak to one of them?

Contract terms that matter

Billing contracts tend to run for years. The terms you sign at the start shape what you can do later.

Ownership of meters and data. If the agent supplies the meters or the communication equipment, who owns them at the end of the contract? Who owns the reading history and customer records? You want a clear right to all of your data, in a usable format, at any time and at no extra charge on exit.

Length and exit. How long is the initial term, how much notice do you need to give, and what does it cost to leave early? Can you leave if service levels are missed repeatedly?

Service levels. Ask for measurable targets: actual-read billing rates, call answer times, complaint resolution times and meter repair times. Then ask what happens when they're missed.

Charges. Understand exactly how the agent is paid: per meter, per bill, per customer, a share of collections, transaction fees for top-ups, or a mix. Some charges may be passed on to residents, so check that they would stand up to a fair pricing test.

Handover. If you're switching from another agent, who manages the transfer of data and meters, and how will residents be told?

Credit billing or pay as you go

Agents usually offer both. Credit billing sends residents a bill for what they've used. Pay as you go asks them to top up in advance.

Pay as you go can help residents manage costs and reduce debt, but it puts more weight on the agent's systems and customer support, particularly for residents who struggle to top up. Credit billing depends heavily on accurate readings. Which suits your residents depends on your buildings and your customers, and many landlords offer a choice. Whichever you choose, ask the agent to show how it protects residents who are in difficulty.

Warning signs

Be cautious of an agent that:

• can't tell you what share of its bills use actual readings
• won't commit to measurable service levels
• is vague about who owns the meters and data at the end of the contract
• suggests heat cost allocators can meet the meter duty, when they no longer count towards the duty to install meters in Great Britain[source]
• quotes outdated regulatory duties, such as notifying the metering authority, which is no longer required in Great Britain[source]
• can't explain how residents can complain and escalate. Your bills need to tell them that the Energy Ombudsman accepts heat network disputes, usually after 8 weeks with the supplier[source].

None of these is necessarily a reason to rule an agent out, but each is worth a straight answer before you sign.

Get your own house in order first

Agents can only price and plan accurately if they know what they're taking on. Before you go to market, pull together what you have: a list of networks and the homes or units on each, a meter list with makes, models and ages, how meters are read today, recent reading histories, your current tariffs and how they were set, and a summary of complaints over the last year.

Gaps in that information are worth knowing about now. If you can't say how many meters are working, or how a standing charge was calculated, a new agent will inherit the same problem, and some will price the uncertainty into their proposal. Fixing the basics first usually gets you better and more comparable quotes.

Comparing proposals

Write one specification and send it to at least three agents. Include the number of networks and homes, the meters you have, whether you want credit billing, pay as you go or both, and exactly which services you want. Ask each agent to price against that specification, and to state what's included and what costs extra.

Then compare like with like. A lower headline fee can come with higher transaction charges, a longer minimum term or weaker exit terms. Weigh the service levels and the reference from an existing client as heavily as the price.

How our listings work

Our directory of metering and billing agents is free to use and free to appear in. We write each listing ourselves from the firm's own website and Companies House, and nobody pays to be listed. You can filter by service, region and client type. Listings marked Unconfirmed haven't been checked by the firm yet. If you'd like help choosing, get matched and we'll pass your enquiry to up to three listed firms that do this work.