Heat network metering and billing rules: what applies now, and to whom

If you supply heat to other people, through a district network or a communal boiler in a block, there are rules about how you meter it and how you bill for it. Those rules changed significantly in January 2026, when Ofgem took over as regulator. This guide sets out what applies now, who it applies to and what has gone.

It covers Great Britain. Northern Ireland still follows the full 2014 regulations.

Two sets of rules

Before January 2026 there was essentially one rulebook for heat metering and billing. Now there are two.

What's left of those regulations is mostly about meters: where they must be fitted and how they must be looked after.

The billing side has moved to Ofgem. Since 27 January 2026[source], every authorised heat network has had to follow Ofgem's authorisation conditions, and several of those conditions deal with bills, prices and complaints. In practice, a landlord or operator now has to satisfy both.

Who the rules apply to

The metering regulations apply to heat suppliers: anyone who supplies and charges for heating, cooling or hot water through communal heating or a heat network[source]. The test is what you do, not what kind of organisation you are. A housing association running a communal boiler, a freeholder recovering heating costs from leaseholders and a university charging students for heat in halls can all be heat suppliers.

Ofgem's conditions apply to authorised operators and suppliers, which includes every existing heat network that hasn't been excluded. If you haven't yet worked out whether you're the operator or the supplier of your network, our guide to registering a heat network with Ofgem explains the roles and the 26 January 2027 deadline.

Using a billing agent doesn't move the responsibility. An agent can read meters, send bills and answer residents' calls on your behalf, but the duties stay with the heat supplier. That matters when you choose one, which our guide on choosing a billing agent covers.

What changed in January 2026

Three changes are worth spelling out.

No more notifications. Notifying the metering authority is no longer required in Great Britain[source]. If your files show a notification cycle, you can stop it. Registration with Ofgem is the new reporting route.

Heat cost allocators. These small devices fitted to radiators were sometimes used where full heat meters weren't practical. They no longer count towards the duty to install meters in Great Britain[source]. If your building relied on them, check what that means for your metering position.

The old billing rules have gone. The 2014 regulations used to set out what a bill had to contain. Those requirements no longer apply in Great Britain, and Ofgem's conditions, covered below, have taken over that role.

What the metering rules still require

Three duties remain.

Building-level meters on district networks.

Meters for each customer, in some buildings. Individual meters are required in buildings in the "viable" class, and where an earlier assessment found them cost-effective[source]. Under the 2014 rules, older buildings fell into an "open" class, where meters were needed only if a cost-effectiveness test came out positive. Those tests have now been removed, so an older building without individual meters generally won't need them now, unless an earlier assessment found they were cost-effective.

Looking after the meters you have. Installed meters must measure accurately, keep working and be maintained and checked for errors[source]. A meter that has stopped recording, or records wrongly, causes billing problems and complaints.

Enforcement of these remaining duties sits with the Department for Energy Security and Net Zero, on behalf of the Secretary of State[source], not with Ofgem.

Ofgem's billing rules

Ofgem's conditions are longer and more detailed than the summary here, and you should read them in full. The headline requirements are these.

Persistent estimated billing is one of the most common causes of complaints on heat networks. If you have working meters, this condition means estimates should be the exception, not the norm.

Customers must also hear from you regularly. Billing information must be sent at least twice a year, or at least quarterly for customers who get electronic bills or ask for it[source]. It must include information about the Energy Ombudsman and how to contact it, among other details[source].

Fair prices and back-billing

Two conditions affect how much you can charge.

That doesn't set a price cap. It means you need to be able to show how your charges relate to the costs of running the network. Ofgem publishes separate guidance on fair pricing and cost allocation, and it's worth reading alongside your tariff.

The exception for leases matters for many landlords. Where heating is recovered through a service charge, the long-standing housing rules on service charges apply. Ofgem has said that for now the housing rules take precedence in these cases. See our guide for landlords and leaseholders for more on how leases and heat charges interact.

Who does what

On many networks three different parties are involved, and it helps to be clear which is which.

The operator controls the network: the plant, the pipes and the heat interface units. It is responsible for the meters being installed and working, even if a maintenance contractor does the work.

The supplier has the relationship with customers. It sets charges, issues bills and handles complaints. Ofgem's billing, pricing and back-billing conditions bite here. On many communal systems the operator and supplier are the same organisation, often the landlord.

The billing agent, if there is one, works for the supplier under contract. It reads meters, produces bills, collects payments and may run a resident helpline. It does this in the supplier's name and on the supplier's behalf, so its mistakes are the supplier's problem in the eyes of the customer and the regulator.

Write down who fills each role for every network you run. If the answer isn't obvious from your contracts, that's worth fixing before something goes wrong.

Records worth keeping

When a customer disputes a bill or the regulator asks a question, your records are your evidence. For each network, it's worth keeping:

• a list of meters, where they are, when they were fitted and their serial numbers
• commissioning certificates and the date and outcome of each check for errors
• reading histories, including how each reading was taken and any estimates used
• how each tariff and standing charge was worked out, with the costs behind it
• copies of the billing information sent to customers and when it was sent
• a complaints log, showing what was raised, how it was handled and how long it took

Much of this also feeds into registration with Ofgem, which asks about metering, billing and consumer protection for each network. Doing the work once serves both.

Complaints and customers' rights

Customers who aren't happy with a bill can complain to you first. If that doesn't resolve it, they can go further: the Energy Ombudsman accepts heat network disputes, usually after 8 weeks with the supplier[source]. The consumer advocate is Citizens Advice, for heat network consumers in England and Wales[source], which gives residents free advice. If heat is charged through a lease or service charge, the Housing Ombudsman takes the Energy Ombudsman's place on your billing information.

Good metering and clear bills are the best way to avoid disputes in the first place. A complaint about an estimated bill is much easier to resolve when you have regular, accurate readings and can show how the charge was worked out.

What to do now

Start with an honest audit. For each building, record whether there are building-level and individual meters, whether they work, when they were last checked and how customers are billed. Compare that with the duties above.

Then look at your bills. Do they use actual readings? How often do customers hear from you? Do bills say where to complain? Are any charges hard to justify against your costs?

If you use a billing agent, ask it to show you how its service meets each of these points, because the duty is yours. If you're looking for one, our directory of metering and billing agents lists firms that do this work, and you can filter by service and region. Specialist metering and billing consultants can help with an audit.