Heat Networks Regulatory Framework Support

Ofgem is preparing to be the heat networks regulator and is presently analysing consultation responses and feeding into the development of legislation. Ofgem requires consultancy support from a successful supplier to provide expertise and advice on the scoping and next steps of segmentation, cost allocation and price benchmarking. Given the regulatory framework is due to be in force in April 2025, Ofgem has tight timelines for developing the next steps to feed into consultations that need to be published later this year. There is also certain areas which are very complex where both knowledge of heat networks and policy as well as regulatory expertise is needed.

Ofgem is seeking support in developing an effective regulatory framework, advice on better understanding the market and the best ways to segment the market, and how to close evidence gaps.

Ofgem requires a supplier's support on the following deliverables:

• Strategic Recommendations for Segmentation of Heat Networks Market
• Data Gap Analysis
• Recommendations on Future Stakeholder Engagement
• Recommendations on Cost Allocation
• Strategic View on Benchmarking