Ellie Blacklock, Customer Experience Director, Insite Energy
Significant changes to the UK heat network sector are anticipated this year as Ofgem introduces clearer and stricter standards for consumer rights. Heat network operators and heat suppliers will have 12 months to comply by 27th January 2027.
Yet, although we’ve now arrived at the proposed late-January launch date of the new rules, their contents are still under debate. While the overarching aim to improve consistency, transparency and accountability is widely supported across the industry, many feel the framework requires refinement.
The resulting uncertainty is adding to the upheaval. Nevertheless, some things are clear. We know, for example, that complaints handling will be a major focus area of the new regulations. Detailed, time-bound requirements will stipulate how concerns are submitted, tracked, reported and resolved.
New escalation route
This is partly a response to increasing complaints from heat network residents to the Housing Ombudsman, even though the latter has no formal jurisdiction over the sector. Issues such as slow repairs, missed appointments and opaque charging seem widespread. Yet, until recently, residents had nowhere to turn beyond their suppliers’ own internal complaints processes.
That changed in April 2025 when Citizens Advice and Consumer Advice Scotland began providing free advocacy services for heat network consumers. Additionally, where a complaint reaches “deadlock” with their heat supplier after eight weeks, residents will be able to seek resolution via the Energy Ombudsman. This closes a long-standing gap in consumer protection but introduces additional costs for heat network operators and suppliers who will be liable for Ombudsman fees of £250-375 per case referred.
Heavy compliance burden
The pace and scale of regulatory change presents a genuine challenge for heat suppliers and housing providers. Over the past two years, Ofgem and the Department for Energy Security and Net Zero (DESNZ) have issued numerous consultations, often hundreds of pages each.
For smaller organisations without regulatory expertise or dedicated resources, keeping up is hard. But even big players with established complaints systems will need to introduce new workflows and reporting fields to track issues raised in detail, manage escalations, and produce the granular data Ofgem will require.
Getting ready
Ofgem’s draft authorisation conditions for the Heat Network (Market Framework) (Great Britain) Regulations 2025, alongside forthcoming consumer protection guidance, provide a sensible starting point for organisations reviewing their approach to complaints handling.
One clear requirement is the need to treat heat network complaints separately from general housing issues. That means clear processes, trained teams and systems capable of flagging and categorising concerns accurately.
Some key points to consider include:
- Do your existing processes meet Ofgem’s timescales and the Energy Ombudsman’s procedural requirements?
- Are systems in place to capture and submit quarterly complaints data to Ofgem?
- Can they clearly identify and separate heat network complaints, categorise them by type (as stipulated by Ofgem), and flag those submitted as part of a group complaint?
- Is it possible to track outcomes, resolution times and referrals to the Energy Ombudsman?
- Do residents, including those in vulnerable situations, have easy access to clear information about complaints procedures and escalation routes?
- Can grievances be raised through multiple contact channels without any barriers for vulnerable residents?
- Are service partners, such as metering & billing agents and maintenance contractors, aligned with the new requirements?
- Do contracts need updating, or would outsourcing complaints management be more effective?
Putting principles into practice
As a service provider supporting more than 40,000 heat network households, Insite Energy shares the government’s commitment to improving outcomes for residents. That’s why, alongside engaging with Ofgem’s consultation process, we’ve been strengthening our internal policies and systems in preparation for the new regime.
We’ve introduced a dedicated Complaints Manager role, bolstered staff training and enhanced tracking processes, with consistent data shared with clients via our in-house VANTAGE portal. For housing providers unable to manage complaints internally, we’re also rolling out a fully managed complaints service, including liaison with the Energy Ombudsman where required.
Ultimately, however, the goal is to prevent complaints arising in the first place. Clear, timely, proactive, scheme-specific communication with residents is critical to this. It helps to build trust and understanding, which are vitally important when dealing with systems as complex as heat networks.
Looking ahead
Processes will likely need to keep evolving as further guidance is issued and the new framework becomes established. What’s already clear, however, is that the era of informal or inconsistent complaints handling is coming to an end. With a statutory advocate, a formal ombudsman route and direct regulatory oversight, getting a grip on grievances is no longer optional. For a practical overview of the emerging regulations, see Insite Energy’s consumer protection guide.